Showing papers on "Procurement published in 1998"

An empirical investigation into supply chain management: a perspective on partnerships

Abstract: States that we have witnessed, over the last several years, a profound change in understanding the dynamics of competitive advantage. Managers now acknowledge that a firm’s success is tied, in part, to the strength of its weakest supply chain partner. This paper develops the concept of supply chain management and argues that only through close collaborative linkages through the entire supply chain, can one fully achieve the benefits of cost reduction and revenue enhancing behaviors. Data are presented that look at a range of supply chain management practices and processes. By examining differences in practices and processes between buyers and sellers, along with the supply chain, attempts to understand better the challenges facing managers who espouse supply chain management. Also proposes a change in mind set for the traditional procurement manager and present insights for him/her to adapt to the requirements of the new competition.

Electronic procurement system and method for trading partners

Abstract: An Electronic Commerce system (10) enables corporate purchasers (12) and suppliers (16) to electronically transact for purchase and supply of goods/services. The system includes three major hardware and software components: buyer (12), supplier (16) and bank/administrator (18, 20, 53). To enable suppliers (16) to supply goods and services online and process electronic orders, several software components are used for operating a supplier process server (40, 44) and a supplier catalog server (42). To enable corporate purchasers (12) to purchase products and services online, preferably over the Internet (14), from suppliers (16), software is used for operating a customer server (34) to which multiple users (12) may log-on and access the supplier server (40, 44). An Automated Clearing House (ACH) server (50) may be used to interface with a bank's (ACH) systems (18, 20). A service bureau (48) that supplies the hardware and/or software components and assists to administer the system (10) includes a transaction counter (52), which records transactions and charges buyers (12) and/or suppliers (16) based on the number of purchase orders and/or invoices issued.

Selecting a suitable procurement method for a building project

Abstract: Building procurement has become a fashionable term with industry practitioners and researchers. It determines the overall framework and structure of responsibilities and authorities for participants within the building process. It is a key factor contributing to overall client satisfaction and project success. The selection of the most suitable procurement method consequently is critical for both clients and project participants, and is becoming an important and contemporary issue within the building industry. The problem, nevertheless, lies in the fact that there has been limited empirical research in this field of study. Postal questionnaire surveys of 41 clients and 35 consultants were carried out, and were used to obtain experience of and attitudes to a variety of procurement methods and the criteria used for selection. The findings indicate that a simple set of the criteria generally is adequate and sufficient for procurement path selection, and that there is a reasonable consensus on the appropriate...

Model for public sector design-build project selection

Abstract: Public sector owners are rapidly identifying new construction procurement methods. Changing procurement laws and documented project success are encouraging owners to attempt the design-build method of project procurement. Design-build is a radical departure from the traditional design-bid-build method. This paper reports on the analysis of 122 case studies and the resulting automated tool for public sector design-build project selection. Prediction models are developed for five performance criteria that correlate specific project characteristics to success. Performance criteria and associated models include budget variance, schedule variance, conformance to expectations, administrative burden, and overall user satisfaction. Project characteristics are categorized as project, owner, market, and relationship variables. Statistically significant correlations with success include scope definition, schedule definition, budget definition, project complexity, agency experience, agency staffing, owner design input, design-build market, design-builder prequalification, and method of selection.

Competitive Tendering In Local Government: A Review Of Theory And Evidence

Abstract: The introduction of compulsory competitive tendering in UK local government reflected conventional public choice theories of bureaucracy. These theories suggest that competition for service contracts will lead to lower expenditure and higher efficiency. Extensions and criticisms of the classical public choice model yield very different conclusions. First, the problems of bureaucratic supply are less severe than originally assumed, and secondly competition may itself generate new problems such as transaction costs, erosion of trust between principals and agents, and rent seeking. The impact of competition on spending and efficiency is therefore indeterminate, and must be established empirically. However, studies which evaluate the effects of competitive tendering in local government are few in number, cover a limited range of services, and are methodologically flawed. Therefore neither the initial imposition of competitive tendering by the Conservatives, nor its planned abolition by Labour, can be traced to a solid foundation of theoretical or empirical support. Theoretical and methodological problems that need to be resolved by further empirical studies are identified.

Integrated procurement management system using public computer network

Abstract: Access to procurement (purchasing and contract) data is provided to many users by a system that connects a core procurement system used by procurement professionals in a procuring agency to a public computer network like the Internet. At least one Web/application server connected to the core procurement system by a LAN or WAN provides access to non-procurement personnel in the procuring agency, non-agency personnel in the same organization, vendors, grantees and others, based on security procedures established by an authorized procurement officer in the procuring agency. Users of the system connected via the Internet use Java-enabled Web browsers to create, receive and send procurement documents and data via XML formatted documents. Field buyers connected via a mobile link use portable computers to send and receive similar data. Each user can access a reference library of information sources, such as the FAR, DOL wage rates, etc., in XML format to obtain procurement regulations and required data elements. Procurement documents and data include, but are not limited to, agreements, contracts, grants, solicitations, bids, catalog purchases, announcements, approvals, vendor profile and performance data, interagency agreements, and acquisition plans. All resulting procurement management data is integrated into the core procurement system, where procurement managers exert managerial procurement controls and generate required reports.

Global Sourcing of Services and Market Performance: An Empirical Investigation:

Abstract: Masaaki Kotabe,Janet Y Murray,and RajshekharG Javalgi Submitted April 1996Revised April 1997February 1998^Journal of International MarketingVol 6 No 4 1998 pp 10-31ISSN 1069-031X Global procurement of services has received an increasing amountof managerial attention in recent years Service firms seem to havebegun sourcing some of their activities from abroad in much thesame way that manufacturing firms have outsourced in the past 30years However, little is known about the performance implicationsof a service sourcing strategy This study applies, with appropriatemodifications, a global components/finished goods sourcing strate-gy framework to the service sector It also tests hypotheses relatingservice firms' global sourcing strategy to their market performance The world trade in services, which is growing faster than thetrade in goods, represents approximately 25% of the totalvalue of all global trade (Kotabe and Helsen 1998) The major-ity takes place within the Organization for EconomicCooperation and Development (Gdneng 1988); US servicesimports in 1996 amounted to $1504 billion (StatisticalAbstract of the United States 1997) The dramatic increase inUS services procurement abroad, either intra- or interfirm,is attributed chiefiy to government deregulation and techno-logical advances The revolution in data processing andtelecommunications either makes the tradability of someservices possible or facilitates the transactions economically(Gerstein 1987; Sampson and Snape 1985)Despite the increase in global procurement of services(Fortune 1994; Liu and McGoldrick 1995), few studies inves-tigate global sourcing issues and performance implicationsThe literature on service industries in the global arena stress-es their growing importance (Gowell 1983; Palmer 1985;Patterson and Gicic 1995); the motives, process, and prob-lems of internationalization (Bower 1968; Gaedeke 1973);determinants of foreign direct investment (Terpstra and Yu1988; Weinstein 1977); foreign market entry modes (Erramilli1990; Erramilli and Rao 1993); and the propensity for servicefirms to follow major clients abroad (Patterson and Gicic1995) Some of this research is dated, however, and a neg-lected topic is how to manage service procurement for com-petitive advantage (Anderson and Narus 1995)This study examines the factors infiuencing global sourcingof services by US service firms and the effect of such a strat-egy on market performance A paradigm developed for com-ponents/finished goods sourcing is modified and applied to

Risk analysis and management of Private Finance Initiative projects

Abstract: The Private Finance Initiative (PFI) is a recent development in the UK in which private sector organisations, design, build, finance and operate assets to deliver a service to public sector clients. The initiative is expected to bring the private sector's finance, management skills and expertise into projects which would normally be undertaken by the public sector. Equivalents of this initiative, also found outside the UK, include DBFO (Design Build Finance Operate), BOO (Build Own Operate) and turnkey projects. Two important considerations for a project to receive an approval for the initiative are that it must represent value for money and there must be sufficient transfer of risk to the private sector. This paper, based on a questionnaire survey, provided the perceptions of clients, contractors and financial institutions on risk associated with PFI and how these determine their approach to PFI schemes. The analysis shows that design changes and the level of information on functional, performance and output requirements for PFI schemes are of major concern to the parties involved in this procurement route.

Electronic Commerce: Three Emerging Strategies

Abstract: Electronic commerce is fulfilling its early promise for business-to-business trade. Marketplaces that connect buyers and sellers are up and running in many product categories, and are creating value by making trading more efficient. The experience of early participants suggests that an electronic marketplace can capture savings of 10 to 20 percent on sales and deliver lower prices for buyers.(*) The rewards are split three ways. Sellers can reach more customers, gather better information about them, target them more effectively, and serve them better. The marketplaces also create value for the third-party intermediaries that organize some of them. Intermediaries can earn transaction commissions and fees for value-added services such as information capture and analysis, order and payment processing, the integration of buyers' and sellers' IT systems, and consulting services. The best rewards go to buyers, however. Able to compare products and prices easily, they will compel suppliers to compete more fiercely than ever. The potential value at stake is enormous. Take the US maintenance, repair, and operations (MRO) products business - including items ranging from brooms and light bulbs to simple motors - which is worth $300 billion. If the electronic marketplaces rapidly emerging in the industry came to harness even 10 to 20 percent of these sales, and reaped the same process cost and price savings as the earliest electronic marketplaces - that is, 10 to 20 percent - the industry could see value creation worth $3 to $12 billion. Similarly, in the combined PC and low-end networking products industry, $2.5 to $5 billion is at stake. A battle between buyers, sellers, and intermediaries to capture this value seems inevitable; furthermore, the conditions for winning it are already evident. It is therefore time for businesses to consider how they might participate in electronic marketplaces to create value for themselves and prevent it shifting to competitors. Three models There are three types of marketplace: those controlled by sellers, those controlled by buyers, and those controlled by neutral third parties (EXHIBIT 1). Marketplaces controlled by sellers are usually set up by a single vendor seeking many buyers. Its aim is to create or retain value and market power in any transaction. The corporate Web site set up by Cisco Systems, for example, enables buyers to configure their own routers, check lead times, prices, and order and shipping status, and confer with technical experts. The site generates $3 billion in sales a year - about 40 percent of the company's total. Exhibit 1 Types of electronic marketplace Seller controlled Information-only vendor Web sites Vendor Web sites with online ordering Buyer controlled Web site procurement posting Purchasing agents Purchasing aggregators Nuetral Industry/product-specific search engines Information marts (structured access to vendor and product information) Business malls (multiple vendor store fronts) Auction spaces In addition, by publishing technical documents on line and giving customers access to order information, Cisco saves $270 million annually in printing expenses, order and configuration errors, and telephone-based technical support. Its online market may also increase customer loyalty by speeding up ordering and order status checking. Buyer-controlled marketplaces are set up by or for one or more buyers with the aim of shifting power and value in the marketplace to the buyer's side. Many involve an intermediary, but some particularly strong buyers have developed marketplaces for themselves. Japan Airlines, a big purchaser of in-flight consumable items such as plastic rubbish bags and disposable cups, posts procurement notices on line in order to find the most attractive suppliers. …

Purchasing Practice in Dutch Municipalities

Abstract: The purchasing function is of great importance for the business community as well as for governmental organizations. In industrial companies purchasing already accounts for 60 to 90 percent of total turnover. This share is expected to grow as companies tend to increasingly outsource their non-core activities. In governmental organizations purchasing’s role is also becoming increasingly significant, especially in light of the continuous pressure to cut public spending, both at the central and local levels. For example, the Dutch General Auditor’s Office2 concluded in 1991 that the Dutch government, in general, lacks sufficient price awareness and does not pay enough attention to quality in its purchasing practice. In addition, the European Community (EC) directives on public procurement play a significant role.

Linking procurement systems to project priorities

Abstract: The main objective of this work is to assess the impacts of various procurement variables on project performance, in comparison to the impacts of non-procurement related variables, such as project conditions and team characteristics. Since the impacts of specific procurement variables, such as contract type, have been investigated before, it was decided to first develop a comprehensive framework of procurement options. This framework is based on a holistic overview of procurement systems that included, for example, sub-systems of work packaging, and type of contract. A model was next developed to link the procurement system variables to project outcomes. Additional variables such as the characteristics of the project and the project participants were incorporated into this model as 'intervening' variables. A survey in Hong Kong tested the relative strengths of such procurement sub-systems and intervening variables, in terms of their influences on project outcomes. The interim results are described in this...

Impact of the internet on procurement

Abstract: We believe that the Internet and related technologies will help change the role of the purchasing department, from a transaction-oriented function to a more managerial one that focuses on esta blishing and maintaining relationships with suppliers, third parties, and internal customers, and leeraging corporate buying power. In its new role, procurement will also manage the technological infrastructure necessary to either automate transactions fully or to empower end users to perform many transactions without the direct involvement of the purchasing personnel. These trends have major implications on procurement processes, policies, and technologies, and change management approaches. We discuss this statement by looking at the state of the art and trends in Internet-based procurement systems, and by using the results of an empirical survey that we conducted r ecently.

Road Maintenance Management: Concepts and Systems

Abstract: The purpose of this book is to provide an up-to-date description of road maintenance management. This is a field of rapidly growing importance, and one in which many engineers, and managers from other backgrounds, are increasingly becoming involved. The book has been developed based on the experience of project work in this field in a number of countries, and from a series of short courses run for road practitioners at the University of Birmingham in the United Kingdom and at the Royal Institute of Technology at Stockholm in Sweden. The book is designed as a basic text for short courses aimed at engineers and managers working in road administrations who have the responsibility for managing maintenance of the existing road network and for implementing road management systems. The chapters of this book can be considered to fall into three groups. Chapters 1 to 3 deal with fundamental policy aspects of maintenance management, institutions and finance. They cover subjects that will be of primary concern at the national level, where matters of policy, objectives and standards are normally decided. Chapters 4 to 7 are mainly concerned with planning and programming, which are considered from the perspective of the costs and benefits of investing in maintenance, data, treatment selection and prioritisation. These chapters should be of most interest to those tiers of the organisation whose staff are sub-sector budget holders, possibly at regional level. The remainder of the book focuses on preparation and operational issues of day-to-day management of roads and the procurement of works. This book is a reference textbook for the Overseas Road Note entitled Guidelines of design and operation of road management systems, which has been prepared by the Transport Research Laboratory (TRL). (A)

Critical Communications Variables

Abstract: Effective communications are essential to the successful completion of engineering, procurement, and construction (EPC) projects. Research from the Construction Industry Institute (CII) confirms this hypothesis. However, this finding would be of little benefit without a means for measuring a project's communications effectiveness. This paper documents the efforts of a CII research team in identifying and measuring critical communications variables during the execution phases of EPC projects. It confirms the common recognition of communication problems, provides insight into communications theory, and outlines procedures used by the research team throughout the study. Critical communications variables identified in the process are consolidated into six manageable categories establishing the basis for a communications improvement program. These categories in relative order of importance are accuracy, procedures, barriers, understanding, timeliness, and completeness. The paper concludes by acknowledging that this is the first step in solving project communications problems. To gain maximum benefit from this research, the categories and variables identified must be incorporated into an assessment tool and applied as part of a communications improvement program.

The Effects of Competition in Swedish Local Bus Services

Abstract: The Swedish bus and railway sectors have been recognised as important early cases of regulatory reforms that led to both vertical and horizontal disintegration as well as market-opening. This thesis investigates the origin and evolution of these reforms from 1979 to 2009, focussing on the markets for passenger services. The aim is to improve our understanding of the background, resulting nature, and consequences of these regulatory reforms. A combination of qualitative and quantitative analyses has been applied; e.g. the thesis makes use of a unique database of longitudinal industry statistics. This thesis shows that the origins of the Swedish reform process were internal and largely unrelated to any objectives of deregulated market-opening. However, a combination of the nature of the initial reforms, the behaviour of market actors, and certain key events accidentally sparked a trend towards deregulation, which has had profound effects on market structure and performance. The step-by-step evolution, in particular the introduction and expansion of competitive tendering, is shown to have had path-dependent characteristics. Swedish competitive tendering of bus and railway services has had important effects on costs and subsidies, but has also generated the problematic behaviour of strategic bidding. Included within are detailed articles which make additional contributions to relevant theories and offer normative advice concerning the design and implementation of regulatory reforms in these as well as other sectors.

The Potential of Intelligent Software Agents in the World Wide Web in Automating Part Procurement

Abstract: Imagine an approach to organizing work that almost every manager endorses, yet few argue has satisfied their personal performance expectations. This may not be as difficult to imagine as one may think. At a recent gathering of executive procurement managers, organizers asked several questions concerning the use of cross-functional sourcing teams.[1] The first question asked if the participants relied on cross functional sourcing teams to support procurement and sourcing decision making. The response was overwhelming - every manager said his or her firm used sourcing teams in some capacity.[2] The second question asked if the performance of these teams met their personal expectations. Again, the response was overwhelming - every manager revealed some level of dissatisfaction with overall sourcing team performance. This perceived dissatisfaction with cross-functional sourcing team performance is consistent with findings from earlier team-based research) In this study, team members and leaders rated how well their sourcing team satisfied their personal performance expectations. The average perception, 6.4 out of 10 (where 10 represented total satisfaction), revealed a wide gap between actual performance and performance expectations. Performance raters external to each team, many of whom were executive managers, also perceived a similar gap between actual and desired performance. Additionally, a recent survey by A.T. Kearney revealed that seven out of 10 organizational work teams fail to achieve their intended results. While most managers argue strongly that teams are a vital part of today's organizational landscape, the evidence to date suggests that team performance, including cross-functional sourcing team performance, has yet to match expectations. Using sourcing teams is not as routine as many managers believe and comes with no guarantee of better results compared with more traditional work methods. While many variables affect team performance, the individual and collective effort that members put forth on their sourcing assignment is critical to success. Unfortunately, the relationship between member effort and team effectiveness has received minimal attention by academicians and practitioners. Given the emphasis placed on the use of cross-functional sourcing teams, how to gain member effort and commitment becomes one of the most important team-based issues facing procurement and sourcing managers today. This article addresses the topic of member effort and commitment by presenting a set of questions that executive managers must ask concerning the use of cross-functional sourcing teams. Knowing how to respond to these questions increases the probability that individual and collective effort will occur at the level required to satisfy performance expectations. The arguments presented are based on experience with more than 100 cross-functional sourcing teams, continuing research and experience with a wide range of organizational teams, and an integration of related work by leading researchers. Because the research involving cross-functional sourcing teams is limited, this discussion will include research findings involving self-managed teams, a category of teams that includes cross-functional sourcing teams. PROMOTING INDIVIDUAL AND COLLECTIVE TEAM EFFORT Figure 1 illustrates part of the reason why many sourcing teams fail to satisfy performance expectations. This exhibit, featured in an earlier International Journal of Purchasing and Materials Management article, segments cross-functional teams across two variables: the time frame of the team's assignment and the personal time commitment required of each member.[4] Sourcing teams staffed by part-time members, which is the lower half of the figure, face the greatest risk of not realizing adequate member involvement and commitment. While some firms manage their sourcing process with teams staffed by full-time members, most have maintained their existing functional structure while adding part-time cross functional sourcing team responsibilities. …

Discriminatory Public Procurement Policy and Cost Reduction Incentives, with Florence NAEGELEN, Journal of Public Economics, vol. 67, n° 3, 1998, 349-367

Abstract: Abstract Discriminating in favor of domestic suppliers in the award of government procurement contracts is a widespread practice. In this paper, we extend the previous analysis of McAfee and McMillan (1989) [Government procurement and international trade. Journal of International Economics 26, 291–308] and Branco (1994) [Favoring domestic firms in procurement contracts. Journal of International Economics 37, 65–80] by considering in the same model the bidding competition stimulation effect and the favoritism effect. We prove that the optimal policy can be implemented by a modified Vickrey auction or by a complex modified first price auction. We also consider that firms can reduce their cost by a nonobservable effort. We show that taking moral hazard into account does not modify the awarding rule, but that the government must use the payment rule to require a greater level of effort from the favored firm.

The selection of management consultants: How are governments dealing with this difficult decision? An exploratory study

Abstract: Although the public sector has become a major employer of management consultants, no research has previously been undertaken to investigate the purchase of management consultants in the public sector context. Outlines an investigation into the purchase of management consultants by government departments, focusing specifically on the selection decision. The UK and Australia were examined to ensure that the findings were not merely local phenomena. Research focused on the public sector decision makers’ guiding procurement principle, value for money, and the criteria and information sources both used and desired to assist the purchase decision. It was found that there was widespread and relatively uniform understanding of the procurement principle, value for money, although there appeared to be a lack of connection between this principle and procurement practice. Public sector decision makers also believed that they had adequate although not satisfactory access to information upon which to base their decisions while, significantly, it was revealed that these decision makers did not believe the selection decision for management consultants was, overall, difficult. Concludes that the implications of this research are twofold. First, it highlights the issues of “corporate memory” and information management, and their impact upon informed decision making, and secondly it questions the applicability of private sector research to public sector practice.

Evaluation and Competitive Tendering of BOT Power Plant Project in China

Abstract: The tremendous economic growth in China has resulted in an immense demand for basic infrastructure like roads, ports, and power generation facilities. There are thus many investment opportunities for foreign investors. At the same time, some innovations have also been introduced in procurement practices. For example, the build-operate-transfer (BOT) scheme, open competitive bidding, and fully foreign ownership were adopted at the end of 1996, when the concession of the first state-approved BOT project, the Laibin B power plant project in Guangxi Province, was awarded. It is important, therefore, for foreign investors to understand the current regulations, approval procedures, and evaluation and competitive tendering of privatized infrastructure projects by the government-approved BOT project agents in China, in order to secure concession contracts and manage the associated project risks well. This paper discusses these innovations, the roles of the BOT project agents, and the evaluation and competitive te...

Trust and contracts : relationships in local government, health and public services

Abstract: This is a book about trust - in local government, in the health service, in military leaders, in politicians, between regulators and those they regulate. It starts from first principles, and should be a useful reference for students of the public sector who want to understand why "best value" and "relational contracting" are replacing pure private sector models such as Compulsory Competitive Tendering. The publication also sets out to stimulate creative thought. It aims to influence managers - not in the naive sense that they trust regardless, but as an incentive to examine their practice, and that of their organizations, to see how more trust might lead to more efficiency and to a greater involvement of ordinary citizens in the services they use.

Competitive tendering practice in chinese construction

Abstract: In line with the economy reform program, competitive tendering methods have been introduced to the Chinese construction industry to supplement and gradually replace the past assignment system for the procurement of construction projects. The major objectives of applying the competitive methods are to improve the effectiveness of construction investment and to develop the Chinese construction market toward the international procurement practice. This paper examines the development of competitive tendering practices in the Chinese construction industry, particularly in the more developed regions. It presents the characteristics of the tendering practice within the special environment where the national economy system is being reformed from a purely planned system to a market-oriented system. Outstanding problems in the development of tendering practices have also been investigated. A constructive survey and an in-depth discussion from Chinese academic institutions and governmental departments are used to support the analysis. The study provides a strong indication of the potential development of a competitive tendering system in China.

A just‐in‐time evaluation strategy for international procurement

Abstract: Many manufacturers are considering the just‐in‐time (JIT) philosophy in order to become more competitive in global markets. An important element of the JIT strategy is the purchasing function. The procurement of parts and materials plays a key role in the successful implementation of a JIT strategy because it has a direct impact on increased productivity, reduced costs and improved quality. Experts agree that supplier selection is one of the most important activities of purchasing. Three popular methods for supplier performance evaluation appear in the literature: categorical, weighted point and cost ratio. However, these techniques have disadvantages associated with them and an alternative approach is suggested which applies dimensional analysis to selecting prospective suppliers. An international purchasing office (IPO), located in Hong Kong, has been applying the dimensional analysis approach to assessing suppliers. Using the IPO as a case study, the benefits of this approach over the traditional assessment methods are discussed, both as a means of measuring not only supplier performance, but also the contribution to the purchasing relationship from the buyer organisation.

Supply-Based Strategies, Human Resource Initiatives, Procurement Leadtime, and Firm Performance

Abstract: INTRODUCTION Time-based strategies have been widely employed to achieve a variety of time-based performance goals. Such goals have typically included reductions in leadtimes for product development, product launch, manufacturing, and delivery.[1] For example, 3M reduced its new product development time from two years to two months, Motorola cut its production lead time for cellular phones from several weeks to four hours, and Johnson and Johnson has the top selling contact lens largely due to its rapid (three days or less) and reliable (99.99 percent on-time) delivery of disposable contacts. Improvements in time-based performance are not limited to new product development, manufacturing, and delivery. For example, Levi Strauss reduced its reorder cycle time from nine weeks to four days resulting in lower costs, fewer stockouts, and higher flexibility.[2] This suggests that procurement leadtime is also an important dimension of time-based performance, even though it has received little attention in time-based literature. The purpose of this research is three-fold. First, it examines the contribution of procurement leadtime (PTL) performance to overall firm performance using data from a large sample of companies in the automotive supply industry. Second, it examines the relationship between antecedents (or drivers) of procurement leadtime performance and procurement leadtime using data from the same sample of firms. Two major categories of antecedents are considered: (1) supply-based strategies; and (2) time-related "best practice" human resource (HR) initiatives. Finally, it investigates whether supply-based strategies and human resource initiatives interact in their effects on procurement leadtimes. LITERATURE REVIEW Procurement Leadtime and Overall Business Performance Researchers have considered time-based competition relative to various stages of the overall value delivery system and have proposed a variety of measures to evaluate these different aspects of time-based performance. In the time-based competition (TBC) literature, five measures appear most frequently: * Delivery speed * New product development time * Delivery reliability/dependability * New product introduction * Manufacturing leadtime The popularity of these measures suggests that new product development, new product introduction, manufacturing, and delivery are key activities contributing to time-based performance. While strategic initiatives associated with procurement leadtime performance are described in the operations and sourcing literatures, the contribution of procurement leadtime to overall firm performance has been largely ignored.[3] No empirical studies have examined the relationship of procurement leadtime to overall firm performance. We contend that procurement leadtime performance will exhibit a positive relationship with one or more measures of overall firm performance (e.g., ROI). This leads to the following proposition: Research Proposition 1: There is a positive relationship between procurement leadtime performance and one or more measures of overall business performance (e.g., ROI). Supply-based Strategies and Procurement Leadtime The operations and sourcing literature suggests that supply-based strategies affect time-based performance in general. Such strategies include electronic data interchange (EDI), integrating information systems, Just-In-Time (JIT) manufacturing/purchasing, standardization, supplier development, and supplier partnership. A summary of the relevant literature is provided in Table I (see page 14).[4] Note that this table highlights the nine empirical studies reporting statistically significant relationships between the use of supply-based strategies and time-based performance. The literature reveals that the integration of information systems is a significant predictor of delivery and new product development leadtimes. …