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This presentation is a part of the Offshore Wind Denmark project initiated by Offshoreenergy.dk and the Danish Wind Industry Association and supported by: There is a relatively scarce literature available in relation to the purchasing practices in the project procurement literature [1]. However, there can be identified three distinct areas that are likely to have a positive effect on more cost-effective purchasing. These areas are the level of collaborative organizing of the project purchasing  1, 2, 3, 5], appropriate supplier selection criteria  2, 3, 4] and the composition of a competent project purchasing team  4, 6]. This paper aims to shed light on the efficiency of the purchasing practices in offshore wind farms by posing the following questions: 1.To which extent is purchasing considered as a collaborative activity? 2.What characterizes the supplier selection? 3.What characterizes project purchasing team’s competencies? By answering these questions the article will contribute to the enhanced awareness of more efficient purchasing activities in offshore wind farms. The challenge of reducing cost of energy (CoE) is one of the most triggering issues in relation to the establishment of offshore wind farms. In this context the role of purchasing gains relevance, as wind farm projects entail large scale procurement and involve several suppliers. This article focuses on identifying to which extent cost-effective purchasing activities are taken into consideration when establishing offshore wind farms. This is done through a case study that followed purchasing practices in a North European offshore wind farm project. Preliminary findings indicate that: Purchasing seems to be a somewhat unconscious process and characterized by individual organizational goals. Supplier selection process is to a high extent based on offshore track record and earlier project collaboration. Project purchasing competencies are biased between the technical and commercial personnel. In order to reduce CoE in offshore wind farm projects, project purchasing deserves to be taken into consideration as a contributor to a more efficient supply chain. This study shed light on the project purchasing practices in an offshore wind farm context. Three purchasing areas were recognized as being important for a more successful and effective project purchasing practice: 1.Collaborative, incentive-based activities to ensure a positive project result. 2.Appropriate and task related supplier selection. 3.Relevant project purchasing competencies. The case in an offshore wind farm context revealed that in general there was a minor focus on project purchasing. Practices were characterized by individual organizational goals, and supplier selection was to a large extent based on previous experience and well-established relationships. Moreover, there could be identified biased purchasing competencies among the team members, especially between the technical and the commercial buyers. Finally, project managers gained an important role in coordinating the purchasing interfaces between different supplier tiers. Offshore wind farm projects can benefit from focusing on the purchasing processes when planning and implementing projects. By doing so, a combined technological and business administrative effort to reduce CoE is likely to have a positive effect on the offshore wind farms’ supply chains. Abstract Cost-Effective Purchasing in Offshore Wind Farms -Utopia or an Opportunity to Contribute to a More Efficient Supply Chain? Salla Lutz, Postdoc, PhD University of Southern Denmark, Department of Environmental and Business Economics PO. ID 028 Results Objectives Conclusions and perspectives Methods References EWEA OFFSHORE 2013 EWEA OFFSHORE 2013 In this preliminary phase of the research project a qualitative case-based research design was chosen. The data collection was based on semi-structured interviews with companies involved in the same North European offshore wind farm project. More specifically, a supply of a transformer platform’s topside was studied. The empirical starting point for conducting this somewhat explorative case study was to become acquainted with some actors within the sector and in that way grasp some purchasing characteristics typical to the sector. In that sense one may argue that the selection of the participating companies was random, but nevertheless, it provided an applicable foundation for a research project that is in its early phase. There was a focal company, an electronic system supplier that was of remarkable assistance in helping to establish the contacts with the other interviewed companies that represented different supplier tiers in the project. The interviewed companies were an electricity supplier that also was a project owner, a topside supplier, an electronic equipment supplier, as well a circuit breaker panel and a generator supplier. The interviewed companies and their internal relationships are illustrated in Figure 1. Figure 1: The companies interviewed and their internal relationships In total 10 interviews were conducted during the preliminary case study period (March – August) in 5 different companies. In three of the companies the project managers were interviewed, and one interview was also conducted with a purchasing manager. In the remaining two companies key account managers and a technical specialist were interviewed. The interviews lasted between 30 minutes and 1½ hours and they were recorded and thereafter transcripted. The interviews were analyzed in Nvivo (a software for analyzing qualitative data) by comparing them with the identified characteristics in the literature. On the basis of the conducted interviews, peculiar project purchasing characteristics could be detected among the companies. The findings of the case study are illustrated in Table 1 by comparing the case study results with the characteristics of cost-effective purchasing identified in the existing literature. The results of this study are based on a single case study conducted in a relatively short time period. Therefore, the results can not be generalized. However, the findings indicated some interesting traits in the offshore wind farm context and further research is needed to strengthen and to refine these results. Table 1: The case study results