Solar EPC Contractor Saves on DC Solar Cable Purchase

The Solar EPC industry is fiercely competitive worldwide. Effective sourcing is a critical component that can lead to significant savings on raw materials and services. Specification-based sourcing provides buyers with a broader choice of manufacturers and suppliers, rather than being restricted to a single pre-specified brand. Solely relying on a single approved supplier can hinder the procurement team's efforts for cost reduction.

Our client, a renowned  EPC company with Solar PV projects spread across Africa, the Middle East, and Asia, harnesses the power of our cloud base ready to use eSourcing software. This empowers their procurement teams to source intelligently and efficiently, enabling them to achieve considerable savings on their raw material purchases.

In a recent 7.5MW PV Solar EPC project in the Middle East, the company needed to procure 3.3kV 1Cx400 sq.mm DC Power Cable that met precise specifications.

Facing the Challenge

Initial quotes were obtained from two European suppliers. However, these quotes from Europe were not only on the higher side but also presented challenges in terms of shipping costs and delivery timelines.

Selecting the right Solution

To counter these challenges, the buyer decided to undergo a comprehensive sourcing cycle. This would enable them to connect with, and obtain quotes from, other reputable manufacturers or suppliers in the Middle East and Asia. They utilized eSupplier.com's RFQ feature and its new supplier discovery functionality. This led them to identify an additional four manufacturers who not only matched the required specifications but also had a credible track record of supplying high-quality cables to various global solar PV projects.

The Outcome

Upon the approval of the four new suppliers by their technical team, the procurement division chose to further streamline the negotiation process by employing reverse eAuction. They invited all four newly identified suppliers as well as the original two suppliers for a total of six participants. During the reverse eBidding event for the cable contract, valued at approximately USD 120K, aggressive bidding led to a final winning bid of USD 112K. This resulted in a net savings of USD 8K. The entire process was not only time-efficient but also transparent, yielding significant benefits for the company.