EPC Contractor Procurement for Industrial Products: Complete Guide to Industrial Sourcing and Supply Chain Management Engineering, procurement and construction schedules depend on efficient EPC contractor procurement industrial products teams that can count on to keep projects on schedule, whether it's a large-scale refinery, power generation or infrastructure project that's taking place around the world. For sourcing in any project involving the procurement of EPC products, whether it's an oil and gas pipeline project or an expansion of a manufacturing business, providing necessary industrial products from the right suppliers is more critical than going by price. It explains the procurement process, kinds of products being procured, standards, supplier evaluation and the selection of a sourcing partner on the basis of an objective and specification-based criteria. Looking for sourcing assistance with your EPC project's industrial products? Request a Quote What Is EPC Contractor Procurement? EPC Contractor Procurement – it is the process of sourcing the products, equipment, materials, spares, and services required to complete an Engineering, Procurement, and Construction project, to the technical, commercial, quality and delivery requirements. By collaborating with an experienced EPC procurement services partner, project teams can shop around instead of relying on one OEM relationship to get their equipment. Why Industrial Procurement Matters in EPC Projects World Bank estimates continue to rise the future needs for infrastructure investments worldwide, hence the need for efficient engineering procurement and supply chain management. Project timelines are directly impacted by effective procurement of EPC contractor industrial products, as with large capital projects, even a single delayed shipment of a valve or motor can cause an entire EPC project to be delayed. Types of Industrial Products Procured by EPC Contractors The first step to choosing the correct EPC contractor procurement industrial products categories is to grasp the complete range of mechanical, electrical and instrumentation supplies usually needed: Industrial valves, pumps and flow control equipment. Electric motors, gearboxes, power transmission. Sensors and process control systems Electrical switchgears, PLC systems and automation equipment. Engines and transmissions parts and fluids Power cables, electrical accessories, and connectors EPC Procurement Process Step by Step The procurement of EPC contractors is a set of workflows that always go through the same sequence of stages: Identify technical requirements and Bill of Materials (BOM) for scope of work Send out RFQ to the qualified suppliers and compare the technical/commercial offer Perform supplier audits and check supplier certifications prior to placing orders. Manage factory acceptance test (FAT) and inspection of critical equipment Coordinate shipping, clearance and delivery times Monitor procurement to project milestones and provide updates to stakeholders. Supplier Qualification and Vendor Evaluation Supplier qualification, a process of assessment to determine that a supplier has the technical, commercial, quality and regulatory requirements to supply items to a purchaser. Before accepting a new vendor onto an approved vendor list, an industrial procurement company should investigate the certifications, manufacturing quality systems, financial stability, delivery performance history and after-sales support capability of the vendor. Procurement Documentation and Compliance The common documents that are involved in an industrial procurement are the following: RFQ, Purchase Order, Technical Data Sheet, Packing List, Certificate of origin, Material Test Certificate (MTC), Inspection Report and Quality Certificate: Document / Certification Purpose Material Test Certificate (MTC) Verifies material composition and mechanical properties Technical Data Sheet (TDS) Confirms equipment specifications and performance ratings ISO 9001 Certification Confirms supplier quality management system compliance API / ASME Certifications Confirms compliance with industry-specific engineering standards Certificate of Origin Supports customs clearance and trade compliance Global Sourcing Strategies for EPC Projects Global sourcing can provide more choices of suppliers, more competitive pricing, less reliance on any given supplier, and more products available. In industrial sourcing, the best approach is to create a standardization of technical specifications on projects, so that several qualified suppliers can bid for the same specifications, regardless of geographical location. MRO Procurement for Industrial Facilities Maintenance, repair, and operational materials like bearings, seals, lubricants, motors, valves, tools, filters, safety equipment and other supplies are classified as MRO products in EPC projects. Unlike Capital Equipment procurement, planning for MROs is quite different; MRO items tend …