Case Study #19

Case Study #19 | BUYER

Enable the newly created EPC function to perform scouting and qualification of vendors

Situation

  • A leading international OEM of Turbines and Compressors had recently created a new internal Engineering, Procurement and Construction (EPC) function, mainly to deliver modularized solutions to Clients
  • To sustain the growth of the newly created function, Client was looking for potential Vendor Management tools.
  • In particular, the client was looking to perform Vendor Scouting and Vendor Qualification activities in new and existing geographies, frequently quite remote and in developing countries

Complication

  • Creating a function from scratch also meant each resources’ time, especially for senior resources, was to be used as efficiently and effectively as possible
  • The client’s needs were potentially very vast in terms of geographies to be covered and a plug & play solution was required
  • As the Client was in the initial phases of developing the new EPC function it did not want to overinvest in any solution, without first fully testing it out resulting in a tight budget

Approach

  • Access to the SupplHi digital ecosystem immediately allowed the client to scout through the 16,000+ global Vendors already available on the platform, while also supporting the Client’s spot needs through targeted invitational campaigns for new Vendors
  • The Vendor Qualification activities were strongly complemented by the Vendor Passport TM (VP) – the standard assessment of a Vendor’s capabilities, jointly developed and delivered by SupplHi and Lloyd’s Register

Results

  • The tool’s flexibility and ease of use helped the Client reduce its costs by 75% and free up approximately 30% of their senior resources’ time allowing them to perform more value added activities and to focus on decision making rather than gathering information
  • Since the VP’s data structure is based on international best practises and is as comprehensive as the toughest qualification procedures carried out by leading EPC Contractors and End Users, the Client was sure to be leveraging on a trusted tool, backed by an international third-party inspector

Contract size: between
$100,000 and $250,000