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.

Keywords:

• Supplier selection
• supply chain configuration
• collaboration
• partnerships
• globalization
• projects environment

Acknowledgements

This paper presents part of the results of a project funded by Associazione Nazionale di Impiantistica industriale (ANIMP), the association of Italian engineering, contracting, and plant component suppliers (www.animp.it). This work is also supported by ANIMA (Federazione delle Associazioni Nazionali dell’Industria Meccanica, the association of companies belonging to mechanical and engineering industries (www.anima.it), and ANIE (Federazione Nazionale Imprese Elettrotecniche ed Elettroniche, the association of companies belonging to electrical and electronic industries; www.anie.it).

The authors wish to thank the company respondents for generously sharing their knowledge and experiences, as well as Filippo Manzi and Gianlorenzo Padovani for their preliminary work on the topic.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Yasmine Sabri

Yasmine Sabri is a Lecturer (Assistant Professor) in supply chain management at Aston University in the UK, and the programme director of the BSc in logistics with supply chain management. She received her PhD in Management, Economics and Industrial Engineering with distinction from Politecnico di Milano. Her research is centred on designing integrated supply chains that deliver value without compromising the social and humanitarian impact. Yasmine has published articles in Production Planning and Control, International Journal of Logistics Management, Journal of Humanitarian Logistics and Supply Chain Management, and Journal of Engineering and Technology Management.

Guido J. L. Micheli

Guido J. L. Micheli holds a PhD in Management, Economics and Industrial Engineering. He is Associate Professor of Industrial Plant Engineering at Politecnico di Milano – Italy, and co-Director of the specialized international Master in Supply Chain & Purchasing Management at MIP – Graduate School of Business. He is the author of papers in international journals, including the International Journal of Production Economics, International Journal of Production Research, Production Planning & Control, Journal of Purchasing and Supply Management, International Journal of Physical Distribution & Logistics Management, Journal of Engineering & Technology Management, Management Decision, Journal of Cleaner Production, Sustainability, Risk Management, Safety Science.

Enrico Cagno

Enrico Cagno, PhD, is Full Professor of Design & Management of Production Systems at Politecnico di Milano. His primary interests are Risk Analysis & Management and Industrial Sustainability, with a particular focus on Energy and Resources Efficiency, and their development in the Supply Chain/Network perspective. A particular focus is on Small and Medium-sized Enterprises. He is author of more than 350 publications between journals, books, book chapters and proceedings. He serves as associate editor, and as member of the editorial board and regular referee for several international peer-reviewed journals. He has promoted and coordinated a number research and consultancy projects.