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Data-Driven Analysis of Supply Chain Integration’s Impact on Procurement Performance in International EPC Projects

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  • Jiaxin Huang

    (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong, China)

  • Shui Ming Li

    (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong, China)

Abstract

Integrated supply chain management is essential for enhancing procurement efficiency and project outcomes in international engineering, procurement, and construction (EPC) projects. Despite its acknowledged importance, there is a paucity of understanding regarding the precise effects of supply chain integration on procurement processes in this context. This research analyzes 45 projects overseen by prominent Chinese international contractors to bridge this gap. The research employs Pearson correlation analysis to identify robust correlations among critical components of supply chain integration, procurement management, and procurement performance. Essential elements, including operational performance, procurement contract management, and stakeholder engagement, are identified as critical determinants of project success. The study seeks to examine how international EPC contractors incorporate the complete procurement management process via supply chain integration. Contractors can improve operational efficiency and procurement management by forming partnerships with stakeholders to acquire and integrate resources, hence enhancing project outcomes. This ongoing enhancement process improves procurement efficiency and bolsters the competitiveness of Chinese contractors in the global EPC market. The study underscores the efficiency and sustainability of procurement processes, demonstrating how optimized supply chain integration advances broader sustainability objectives by minimizing waste, enhancing resource utilization, and promoting environmentally and socially responsible procurement practices in international projects. The research offers significant empirical data and insights for academic inquiries and actual company implementations.

Suggested Citation

  • Jiaxin Huang & Shui Ming Li, 2024. "Data-Driven Analysis of Supply Chain Integration’s Impact on Procurement Performance in International EPC Projects," Sustainability, MDPI, vol. 16(23), pages 1-32, December.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10729-:d:1538445
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    References listed on IDEAS

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