Material Supply Origin Selection Strategy And Method For EPC Power Project

With the development of the internationalization, the Chinese contracting of Indian EPC thermal power plant projects has been developing very fast in the last few years, the value of such kind contract constantly heightens the single trade value between India and China. Along with the increasing of the contract value and the number of the contractors, the demands for the management improvement and the experience share are also increasing.Procurement as part of the EPC project affects the project very much, especially the material procurement, which domains the project cost and is hard to manage, that is one of the most important and hardest parts of the project management. Because of the "cross-custom-gate" of the international contracting, the selection of the supply origin-onshore supply or offshore supply relates much with many parts of the project, which would be one important part of the procurement management.Under the certain conditions of Indian EPC power project, this paper study this issue. As India has built his own industrial system, it could supply the material of the EPC power projects, which makes it possible for the contractor to select the supply origin and the reason for the government to regulate the procurement. But the supply capacity of India is limited and the requires of the investors vary, which push the contractors to consider both their own interests and project requirements in the procurement of the project materials under all those restrictions, and to relate the supply origin selection to his supply chain management and market strategy. This makes it harder for the contractor. Now-days the selection-decisions of Chinese contractors mostly come out of their experience subjectively, which could be lacking of efficiency and scientific.This paper studies on the strategy of the selection of the supply origin, based on the theory of the project management and the supply chain management, analysis the factors of several aspects (site conditions, the project and the contractor), discusses the difference of inside or outside custom gate supply, offers the selection strategy and decision method with F-AHP model, and at the end introduces the use and effect of this research in one case.This study suggests that the selection of the material supply origin should be combined with the different requirements in the different project life cycle, considering the factors of the condition, the project and the contractor, and integrating the scientific decision-making application so that to improve the decision-making efficiency and scientific.By this study, the Chinese contractors of India EPC thermal power project could be offered a theoretical and practical guidance when facing such problems in the project implement, so that to improve the efficiency and the scientific of the decision-making of the Chinese contractors. And more, the study would provide some reference, in the solving of such kind of problems, to the Chinese contractors of different projects in different countries, so as to benefit the improvement of the international project management of the Chinese contractors.