ROLE OF PROCUREMENT ON FIRM PERFORMANCE IN LARGE EPC PROJECTS

Abstract

Within engineering, procurement and construction (EPC) companies operating large engineering projects by means of their supply chains, procurement plays a key role in project execution. During project execution, deviations from desired performance in terms of time, cost and quality take place. Procurement can contribute considerably to such deviations as well as to reduce or possibly eliminate them. Based on a comprehensive literature review and the practical experience in the field of Procurement & Supply Chain, the article shows that companies use different ways, namely strategy modifications, process modifications and combined modifications, and implementation of various tools to deal with project deviations.

The aim of this study is to understand the role of procurement while dealing with various issues experienced during the execution of deliveries, and the proactive approach applied in order to control the deviations and improve delivery lead time using various tools.