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

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.

Citation

Amiri Ara, R., Paardenkooper, K. and van Duin, R. (2022), "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", Journal of Engineering, Design and Technology, Vol. 20 No. 4, pp. 887-913. https://doi.org/10.1108/JEDT-01-2021-0047