Material tracking system of the supply chain in engineering procurement construction (EPC)

Abstract

The Engineering Procurement Construction (EPC) project is one of a kind of unique project because the project is usually for oil and gas refining projects that are somewhat different from other construction projects (e.g., buildings, bridges, roads, and dams). This project integrates all phases of work from design to operation. Contractor became the holder with absolute power from the beginning to the end of the project hence a strong and experienced contractor is a must. A significant challenge for contractors is how to manage material procurement because it is well known that the required materials are on a large scale and not infrequently obtained from abroad. One of the models used by contractors in managing EPC projects is the Material Tracking System (MTS). This system is an integrated material procurement system among divisions in a company that will always update the information of each material procurement process. Long before procurement is done, MTS has been informed from the beginning where the materials can be ordered, when they are booked and when they arrive to the location. The result of the present study is the effectiveness of time and communication with the existence of Material Tracking System.