Supply risk management vs supplier selection to manage the supply risk in the EPC supply chain

Abstract

Purpose – The purpose of this paper is to understand whether a link between the use of supplier selection (SS) and supply risk management (SRM) exists and whether further contextual factors which lead to the use of SRM and of SS exist in the engineering, procurement and construction (EPC) sector.Design/methodology/approach – A multiple case study has been undertaken as an empirical analysis to answer a series of research questions. The data have been collected through structured interviews to corporate procurement directors of companies belonging to the Italian EPC sector and operating in an engineer‐to‐order fashion.Findings – The results of the research point out that supply risk can be managed through both SS and SRM. These two different approaches are used alternatively by the companies investigated under resource constraints. A further set of contextual factors leading to the use of SRM (project orientation in supply management, use of partnerships with suppliers, corporate standardisation), and a co...