Supplier selection and supply chain configuration in the projects environment

Abstract

Suppliers in the Engineering-Procurement-Construction (EPC) projects environment are often qualified based on their annual turnover, and as a result a relatively large number of small suppliers get excluded at a preliminary stage from the approved vendors’ list of EPC contractors. To facilitate an inclusive evaluation of a wide range of capabilities of the suppliers, this research examines the application of a broader perspective for supplier selection in the projects environment. Supply chain configuration is put forward as a capability, the development of which contributes to the improvement of the supply network, and so should be reflected in the supplier selection criteria in projects’ environment. This research offers guidelines for EPC contractors which wish to adopt an all-encompassing approach in supplier selection, and guides suppliers and supply chain researchers to consider the supply chain (re-)configuration as a proactive plan for the survival of suppliers which operate in global high-uncertainty environments.