A new blockchain system design to improve the supply chain of engineering, procurement and construction (EPC) companies – a case study in the oil and gas sector
Rashid Amiri Ara, Klara Paardenkooper, Ron van Duin
Abstract
Purpose This paper aims to propose a new blockchain system design to improve engineering, procurement and construction (EPC) companies’ supply chain for constructing oil and gas infrastructure, by mitigating cost and time inefficiencies. Design/methodology/approach A case study analyses the supply chain of a sample EPC company. First, a literature review is conducted to explore the subject in academic literature. Second, information flows are mapped using responsible, accountable, consulted and informed analysis and cross-functional process mapping. Third, inefficiencies are identified. Fourth, the root causes of the inefficiencies are pinpointed using fishbone and five-times-why analysis. Fifth, a comparison is made between the linear and the blockchain information system via force-field analysis. Sixth, a specific blockchain system design is identified based on three external expert interviews. Finally, the new system is designed and a cost-benefit analysis is conducted. Findings Major cost and time inefficiencies in oil and gas infrastructure developments are caused by a poor information flow in the supply chain. The new blockchain system design is a feasible solution, reducing cost inefficiencies by 12.4% and operation lead-times by 36.5%. Research limitations/implications The confidentiality of the sample EPC company’s information represents a limitation. Originality/value The research introduces a new blockchain system design, reducing cost and time inefficiencies in the project-development supply chain, including implementation processes.