Title: Strategic Bidder List Selection in EPC Procurement: Integrating the Kraljic Matrix, TOPSIS, and Supplier Relationship Management
Authors: Naniek Utami Handayani, Zainal Fanani Rosyada, Mochamad Agung Wibowo, and Hanifah Medina Syahputri
Volume: 10
Issue: 1
Pages: 72-84
Publication Date: 2026/01/28
Abstract:
Procurement and supplier selection play a critical role in determining cost, schedule, and quality performance in large-scale Engineering, Procurement, and Construction projects. However, many organizations continue to rely on uniform, price-based, or experience-driven approaches that fail to account for product heterogeneity and supply risk. This study aims to develop and apply an integrated decision-support framework for bidder list selection that aligns supplier evaluation with strategic procurement objectives. The research adopts a case study approach within a large EPC project. Products are classified using the Kraljic Matrix; supplier evaluation criteria are determined through expert judgment, and suppliers are ranked using the Technique for Order Preference by Similarity to Ideal Solution. The resulting rankings are interpreted through a Supplier Relationship Management perspective to derive appropriate procurement strategies. The results show that evaluation criteria weights differ markedly across strategic, leverage, bottleneck, and non-critical product categories. TOPSIS-based rankings reveal substantial differences from traditional decision-making outcomes, particularly for high-risk items, and provide greater transparency and consistency. The findings also demonstrate clear patterns in supplier performance across product categories and show how ranking results can be systematically translated into differentiated supplier relationship strategies. The study concludes that integrating procurement portfolio models, quantitative decision-making, and relationship management significantly improves bidder list selection and procurement governance in EPC projects. The proposed framework contributes to both theory and practice by offering a structured, strategy-aligned approach to managing supplier selection in complex project environments.