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 article (2021)

Authors

Rashid Amiri Ara McDermott International
Klara Paardenkooper Rotterdam University of Applied Sciences, St. Petersburg Polytechnic University
Ron van Duin Rotterdam University of Applied Sciences, Transport and Logistics - TPM
Research Group
Transport and Logistics (TPM) (TU Delft)
Copyright: © 2021 Rashid Amiri Ara, Klara Paardenkooper, Ron van Duin
DOI
help_outline
https://doi.org/10.1108/JEDT-01-2021-0047
Blockchain IoT Oil and gas System design Smart contract EPC company
More Info
expand_more

Published Date

2021

Language

English

Reuse Rights

Other than for strictly personal use, it is not permitted to download, forward or distribute the text or part of it, without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license such as Creative Commons.

Faculty

Technology, Policy and Management

Department

Engineering, Systems and Services

Research Group

Transport and Logistics

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.