July 16, 2025
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Beyond Procurement: How Supply Chain Became the Backbone of EPC Projects
In the world of Engineering, Procurement, and Construction (EPC), success doesn’t just hinge on blueprints and budgets — it rests squarely on the shoulders of supply chain strategy. At the center of this complex machinery is Carsten Bernstiel, Vice President of Procurement for Kiewit’s Oil, Gas & Chemical group, a veteran with over 25 years of experience managing supply chains for massive capital projects around the globe.
We sat down with Carsten to explore how procurement evolved into integrated supply chain leadership, the role of partnerships, and what it takes to keep billion-dollar projects moving — even when the smallest valve is missing.
From “Buy It Cheap” to Strategic Supply Chain Management
When Carsten first entered the field, “procurement” was largely transactional — buy low, move on. “There was little talk of total cost of ownership or risk strategy,” he recalls. But over time, procurement expanded into a far more holistic discipline: supply chain management.
Today, Carsten oversees everything from resource planning and risk mitigation to logistics and expediting. His team doesn’t just react — they anticipate. “Where we once focused on finding the cheapest part, we now ask: Who are the right partners? Where are the risks? And how can we mitigate them before they ever become problems?”
When Supply Chain Drives Profitability
Depending on the project, material procurement can account for up to 50% of total installed costs. That makes Carsten’s team critical to the bottom line. “We sit between engineering and construction,” he explains. “Our job is to make sure materials arrive when construction needs them — not a day late, not a piece short.”
He illustrates the stakes with a simple example: a missing valve. “It seems minor, but without it, you can’t complete a pipe system. You can’t flow anything. That delay cascades and impacts the whole project.”
Planning Backwards, Managing Forward
So how do you avoid delays that can cost millions? “Good planning,” says Carsten. His team works in reverse from the construction schedule, calculating lead times and triggering procurement precisely when needed. “If a part is needed in October and has a six-month lead time, we better buy it in April. And engineering specs must be ready well before that.”
But planning is only half the battle. “Every day starts with solving problems — a delay, a logistics hiccup, a supplier issue. The best supply chains are built to detect and respond to risk early.”
Real-Time Risk, Real-World Solutions
A prime example: delays at the Panama Canal added four to six weeks to shipping times. “We rerouted shipments through Los Angeles and handled final delivery by train and truck. That’s the kind of creative triage we do every day.”
What distinguishes strong suppliers during these moments is transparency. “The worst thing a vendor can do is hide a problem. If we know early, we can help. That’s the foundation of real partnership.”
Global Shifts and the Unpredictable Tariff Landscape
Global trade tensions and unpredictable tariffs have added complexity. “As procurement professionals, we hate tariffs,” Carsten laughs. “Not because we’re anti-policy — but because they create uncertainty. They make planning hard.”
Estimating direct tariffs is possible, but indirect impacts — like price increases from domestic suppliers — are far harder to quantify. “It’s challenging to forecast costs when suppliers don’t even know where they’ll source components.”
AI and the Future of Supply Chain
Kiewit is exploring how AI and predictive analytics can help manage these uncertainties. One university partnership is developing “predictive expediting” — AI systems that flag potential delays before they occur. “AI could help us digest the vast data required to make fast, accurate decisions,” Carsten says.
The Modern EPC Partner: More Than a Bidder
Gone are the days when EPCs simply responded to RFQs. Today, Carsten’s team often collaborates with clients to improve project design and reduce costs. “If a client wants four LNG trains at 25% capacity, we might propose two at 50% to reduce capital cost while maintaining flexibility.”
This consultative role has transformed EPCs into partners — not just vendors.
Building the Next Generation of Supply Chain Experts
One of Carsten’s biggest challenges is talent development. “Most of our new hires have supply chain degrees — something that didn’t exist when I was in school.” His team ensures they get hands-on exposure: visiting vendor sites, attending conferences, and collaborating closely with engineers.
He’s also reorganized his team around procurement categories — giving specialists ownership over specific domains like valves or piping. This builds trust with engineering teams and creates long-term vendor relationships.
COVID Lessons and the Return to Human Connection
Carsten joined Kiewit in the middle of the COVID pandemic, a tough time for an extroverted leader. “I like being with people. Working from home was hard. You lose spontaneous communication — the hallway conversations that spark ideas.”
COVID also forced creative workarounds. Remote inspections via FaceTime became a temporary norm. But Carsten is glad to be back to boots-on-the-ground. “You can’t inspect quality through a screen. Seeing the bigger picture on the factory floor matters.”
Why Supply Chain Has a Seat at the Table — From Day One
At Kiewit, supply chain is integrated into project planning from the very beginning. “We’re part of the strategy, the estimate, the bid. We help define risk and create the roadmap for delivery.”
The pandemic only accelerated this shift. “Everyone saw how fragile supply chains are. Now, more supply chain leaders report directly to the CEO or CFO than ever before.”
The Power of Partnership: A Shoutout to Piping Technology
In high-stakes EPC projects, supplier collaboration often extends beyond transactional exchanges. At one fabrication facility, a conversation with the shop floor team revealed how engineering challenges sometimes demand improvised solutions. Rather than treating unexpected requirements as obstacles, some vendors engage directly with design constraints, contributing ideas and adaptations that move the project forward. These moments illustrate how supplier relationships function best—not through rigid execution, but through shared problem-solving under pressure.
Listen to the Full Episode on Spotify or watch it on YouTube
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Listen to episode one: Engineering Unplugged with John-Paul Schmidt of Dow Chemical | John-Paul Schmidt
Listen to episode three: AI, Cloud, & the Future of Pipe Stress: CloudCalc CEO Isn’t Afraid of Tech-Wary Engineers | Tom Van Laan
Listen to episode four: Reliability Begins at Inception: INEOS’ Kevin Sprague Explains the Role of Reliability Engineers | Kevin Sprague