Enhancing EPC supply chain competitiveness through procurement risk management

This article is intended to provide a risk-based procurement management model. The Procurement Risk Cube (PRC) model originates a systematic approach in the identification of the case-specific risks, their sources, the activities on which they impact and the risk owners. The hierarchical breakdown structure helps data aggregation by simply summing the values of exposure by owner / activity / source, so that establishing a correct intervention priority plan to mitigate downside risks, or to exploit upside risks, becomes easier and more effective. A deep insight into case-specific procurement-related risks is provided by the PRC, which is necessary to improve the understanding of the risks in the supply chain (SC) in order to achieve benefit for the whole SC.