PROJECT PROCUREMENT PROCESS 

Reliable Services for Complex EPC Projects

The strategic management of procurement process is universally acknowledged to be an asset of fundamental importance.

Procurement is also deemed the largest source of risk for (complex) EPC projects. 

Optimum management of risk and of procurement represents the best means of obtaining better results than competitors.

EPC Procurement Process:

  • Material Take Off
  • Supplier Research
  • Market Price Prediction
  • Supplier Qualification
  • Purchase Requisition
  • Supplier Selection and Final Choice
  • Development of the System, Supporting the Relations
  • Order Management and Inspection
  • Shipping
  • Knowledge Management

 

Procurement Value:

  • Small % reductions in purchasing costs turn into huge % increase in profitability.
  • In the EPC industry, a 1% reduction in purchasing costs has the same effect of a 15% increase in sales.

 

Why Outsource:

  • To reduce both fixed and recurrent costs.
  • To allow the organization to focus on its core business.
  • To access skills and technologies.
  • To provide flexibility.
  • To increase accountability.

 

Procurement Process:

Project Phases:

Resource influence and costs along the Project Life Cycle: