EPC contractors in charge of procurement must contend with tight budgets, short deadlines and, at the same time, ensure they maintain high quality standards. Perhaps their greatest challenge in all this is managing a fragmented supply chain. This is particularly the case with valves, which form a significant part of the overall order. With everything from widely used ball valves to niche products such as specialized double block and bleed valves alongside a variety of designs for check valves, where should contractors begin?
Narrowing the field
The first criteria in deciding where to source product is often a project’s own approved vendor list. This might have strict stipulations around country of origin or specific brands, which would limit the contractor’s available options.
The project team will then want reassurance that all products include the latest characteristics and adhere to the highest industry and end-user standards. These might incorporate quality standards or specific materials to ensure compatibility with the wider infrastructure.
However, both these steps will likely leave an extensive range of options open. Another factor, and sometimes more difficult to fulfill, is delivery. Projects are under pressure to convert to revenue quickly, leading to short timelines and small margins. There is a fine line between success and failure, so getting materials in the right place at the right time is critical.
Connecting with the factory floor
As the valve market grows, there are more manufacturing options than ever before. For popular ball valves, companies can choose from hundreds of different sources. The main benefit of dealing with the manufacturer is access to factory-level prices. If a project is procuring a single product in high volumes, these savings can make a big difference to the overall cost.
There can be significant advantages in terms of delivery as well. Working directly with a factory puts the project in closer contact with its supply chain. With their fingers on the pulse, project owners can communicate any changes to the manufacturer, which can then react quickly to the evolving needs.
While cost and logistics are attractive benefits, there are some distinct downsides. Due to the spectrum of valves in scope, a typical mid-sized project might have to work with as many as seven or eight different manufacturers. This results in an administrative burden that can become time-consuming.
Tapping into the supplier network
The supplier landscape is similarly vast. There is a wide range of distributors who keep their own inventory of valves. However, these will inevitably fall short of most project requirements. Instead, there are the better-equipped project suppliers, who can source a wide range of product packages.
The appeal is that a good project supplier can become the master distributor, managing the entire supply chain on behalf of the project. That cuts out a huge administrative burden and will help ensure a speedy and reliable fulfilment.
Project suppliers will also lead with a customer-first approach, using their understanding of technical specifications internationally to tailor a compliant and cost-effective solution. Access to this expertise means project owners save time and money choosing the right fit—all while removing the risk of noncompliance.
A blended approach
There is no one option to suit all projects—although some projects will naturally lend themselves more to one model. Where the bulk of the order is for one type of product and the project has the capacity to manage logistics, working directly with a manufacturer could prove advantageous. However, if the project has complex delivery requirements across a broad spectrum of valves, it would do well to consider a trusted project supplier to ease the pressures.
The optimum position, however, is for projects to have access to the best of both worlds. That means a single supplier relationship for all valves, including direct access to the manufacturer for the highest quantity product. The result would be competitive prices, streamlined management and easy access to technical expertise.
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