Critical steps that should not be overlooked in purchasing processes

The success of solar power plant investments depends on the procurement processes that form the backbone of the project. The right strategy not only means cost control, but also project schedule, quality, and ultimate profitability. For a solar EPC (Engineering, Procurement, and Construction) company, procurement is one of the most critical operational processes.

In this article, we will discuss the critical steps in the procurement process that will ensure the profitability of your solar EPC projects.

1. Needs and technical specification analysis

If you don't know what you want, you'll get the wrong thing.

The first and most crucial step in procurement is clearly defining the requirements. Engineering and procurement teams should meet to thoroughly evaluate the project's technical specifications. During this phase, the required equipment (panels, inverters, mounting systems, cables, transformers, etc.), their technical specifications, efficiency values, compatibility, and compliance with international standards (IEC, UL) and local regulations should be documented in detail. A clear technical specification allows you to obtain comparable bids from suppliers and prevent the procurement of incorrect or incomplete materials.

2. A rigorous supplier pre-assessment and selection process

Cheap meat makes a bland stew.

The lowest-priced quote may not always be the best choice. Supplier selection determines the quality of your project. Questions to consider and ask during this process include: Has the supplier successfully completed similar-scale projects? Does it have the financial strength to fulfill your order and meet warranty periods? Can it produce/supply the quantity you need, when you need it? Do their products meet international quality standards? Is their warranty coverage and post-service network adequate? A comprehensive supplier evaluation allows you to preemptively address numerous potential risks throughout the project.

3. Transparent pricing and robust contract management

Details hide the devil.

When evaluating a quote, focusing solely on unit price is a major mistake. To understand all costs and liabilities, consider how payments are planned for upfront payment, material production, shipment, and final delivery. Will the supplier be able to deliver on your requested date? Should the contract clearly state penalties for potential delays? It's important to review and evaluate details such as warranty coverage, duration, and how the warranty process works. A solid contract can prevent future disputes and protect your project and investment.

4. Perfect logistics and storage planning

If the material is not on site, good luck! Your project is stalled.

Even if you find the right equipment at the right price, if you can't get it to the job site on time and undamaged, all your efforts will be in vain. During the logistics process, you need to ensure operational criteria are met, such as customs procedures for international shipments of imported products, freight and transportation and insurance planning for products purchased from local suppliers, synchronization of transportation with the job site assembly schedule, and pre-preparation of an area where materials can be stored safely and appropriately (protected from moisture, dust, and physical damage) on site. A poorly planned logistics process will result in project delays and equipment damage.

5. Continuous monitoring, tracking and reporting

If you can't measure it, you can't manage it.

The purchasing process doesn't end after the contract is signed; rather, it enters a new phase and evolves. It requires active management. Therefore, you should maintain regular communication with suppliers to monitor production stages and shipment status, establish a control mechanism to monitor material quality during production and before shipment, maintain and record inventories of materials entering the field, utilize ERP software or similar digital tools to transparently monitor and report on this entire process, and share the status with all stakeholders through regular progress reports.

Remember, a successful solar project begins with the right procurement strategy, and purchasing in EPCs is much more than simply "ordering materials." Incorporating the critical steps mentioned above into your proactive, strategic, and meticulously managed business processes will ensure you complete your projects on time and within budget, while also strengthening your reputation in the industry by delivering high-quality, profitable work.