Evaluating supplier selection criteria for oil and gas projects in the UAE using AHP and Delphi

Abstract

Selecting the right materials supplier is of paramount importance to the success of the construction project and the organization as a whole. The objective of this paper is to identify and assess the key criteria for selecting suppliers for oil and gas projects in the United Arab Emirates (UAE). A survey of 23 factors is developed and distributed to experts in oil and gas EPC companies in the UAE. The top 10 criteria are then clustered into two main groups, each consisting of five selection factors. Group one includes technical and commercial aspects, which include quality, price, delivery, service and warranties and claims. Group two is company-related aspects, which include technical capability, production facility and capability, financial position, performance history and geographical location. The Analytic Hierarchy Process (AHP) and Delphi methods are used in evaluating and determining the weights and orders for the 10 selected criteria. The results indicate that quality and price are the most important, with a weight of 0.376 and 0.228, respectively. Additionally, the results show that the technical and commercial criteria are more important than the company-specific criteria.