How to Procure Critical Long Lead Time Items for Megaprojects

Multi-year, multi-stage projects require equipment that must be purchased long in advance because of its complexity, size, or volume. These are the trickiest purchases because they drive the total time and cost of the project by:

  • Forcing early decisions on key technologies and suppliers
  • Influencing design and engineering of other program components
  • Requiring supplier partnerships without competitive bidding
  • Influencing the competitiveness of the supply market (in some cases)

Boston Strategies International(BSI) helped one of the world’s largest wind power operators procure installation vessels, turbines, foundations, and towers for a large offshore wind farm. Our team of specialists led teams dedicated to:

  • Supply chain planning, including simulations and scenarios
  • Category sourcing plans
  • I.P. protection safeguards
  • Capital and operating budgeting
  • Organizational and implementation planning

The results were life-changing for this mega-project:

  • 13% reduction in budgeted capital and operating expenses
  • Negative financial returns became positive
  • Approval of Financial Investment Decision (FID)

Can we help you plan critical long lead time procurement decisions?

BSI works for companies with power industry leaders such as Vattenfall, Iberdrola, Avangrid, Siemens, and for global natural gas suppliers such as Gazprom and Novatek.

 

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