Role of procurement and supply chain management in 4 MW captive power plant project performance: a case on Coca-Cola Bangladesh Beverages Limited

Abstract

I am part of the Electric Power System Division at BanglaCAT, the exclusive distributor of CAT diesel gensets in the Bangladesh market. We provide Diesel and Gas captive power in the industrial zone of Bangladesh. BanglaCAT serves clients from Bangladesh’s Spinning Mills, RMG sector and pharmaceutical industries. One of our stakeholder Coca-Cola International Beverages Ltd. issue a RFQ to all the captive power provider in Bangladesh to supply design and install a 4MW diesel power plant. As a very reputed company, BanglaCAT won the project and signed an agreement with Coca-Cola International Beverages Ltd. to complete the full supply, installation and commissioning of 4MW diesel Power plant. The supply chain for captive power plant installation involves the coordination of design, information, materials, labor, construction tools, and preliminary work, all managed by various stakeholders, including contractors, suppliers, subcontractors, engineers, and architects. The process of supplying, designing, and installing a captive diesel power plant is highly complex and unique. Any disruptions in this flow during project execution can hinder construction progress. This study aims to analyze the impact of procurement and supply chain activities on the design, supply, and installation of a diesel power plant. To achieve this, real-time data was gathered from various sources, including interviews with the procurement and supply chain teams, suppliers, contractors, engineers, and other project stakeholders. Additionally, I visited the ongoing construction site multiple times for first-hand observations. The findings revealed that issues with material flow and layout changes significantly disrupted project performance. Specifically, delays in the shipping of the Diesel Generator and material shortages at the site highlighted how supply chain problems can cause delays, negatively affecting the timely completion of the project. Based on these insights, the study proposes strategies to address these challenges and improve the performance of captive diesel power plant projects.