Showing papers on "Procurement published in 2000"

Designing and managing the supply chain : concepts, strategies, and case studies

Abstract: Chapter 1: Introduction Chapter 2: Inventory Management and Risk Pooling Chapter 3: Network planning Chapter 4: Supply contracts Chapter 5: The Value of information Chapter 6: Supply Chain integration Chapter 7: Distribution strategies Chapter 8: Strategic alliances Chapter 9: Procurement and Outsourcing Strategies Chapter 10: Global Logistics and Risk Management Chapter 11: Coordinated product and supply chain design Chapter 12: Customer Value Chapter 13: Smart Pricing Chapter 14: Information Technology and Business Processes Chapter 15: Technology standards Appendix A: Computerized Beer Game Appendix B: Risk Pool Game Appendix C: Supply Contract Spreadsheet Appendix D: Bidding Game

System and method for energy management

Abstract: A business methodology for optimizing energy procurement energy demand (usage) and energy supply for a facility or complex. After ascertaining a baseline model, energy consumption is monitored and adjusted to reflect dynamic economic factors of operations. With the accumulation of data, contract negotiations with energy suppliers may provide further energy savings. Over time and patterns of usage determined further savings and optimization in energy, equipment, staffing and other operational areas are obtained. Remote access provides efficient monitoring of established systems.

Inventory Management of Remanufacturable Products

Abstract: We address the procurement of new components for recyclable products in the context of Kodak's single-use camera. The objective is to find an ordering policy that minimizes the total expected procurement, inventory holding, and lost sales cost. Distinguishing characteristics of the system are the uncertainty and unobservability associated with return flows of used cameras. We model the system as a closed queueing network, develop a heuristic procedure for adaptive estimation and control, and illustrate our methods with disguised data from Kodak. Using this framework, we investigate the effects of various system characteristics such as informational structure, procurement delay, demand rate, and length of the product's life cycle.

Purchasing and Supply Chain Management

Abstract: Purchasing and Supply Chain Management, now in its 6/e is a much revised and enlarged version of this successful textbook. The authors take an integrated approach, drawing on the many disciplines from ethics and human resources to suppliers, sourcing and strategy that all contribute to a full knowledge of purchasing practice and techniques. This 6/e has been substantially revised, with 3 new chapters, to take account of recent developments in this area. The book covers the syllabus of the CIPS in respect of the Foundation Stage subjects Introduction to Supply and Materials Management' and `Legal and Procurement Processes' and the Graduate Diploma, Professional Stage core and option subjects of `Purchasing and Supply Chain Management I- Strategy', and `Purchasing and Supply Chain Management II- Tactics and Operations'

Enterprise resource planning: the emerging organizational value systems

Abstract: Enterprise resource planning (ERP) is a set of applications that automate finance and human resource departments and help manufacturers handle jobs such as order processing and production scheduling. This paper attempts to provide an overview of an ERP system along with the real experiences of its implementation. Reports results of a survey of several ERP companies and considers factors such as future trends in ERP including developments such as Web‐based procurement applications and outsourcing of ERP applications. Suggests some challenges for ERP, such as the need to ensure global compatibility and flexibility.

An optimization approach to determining the number of vendors to employ

Abstract: Presents an approach for evaluating the number of vendors to employ in a procurement situation using multi‐objective programming (MOP) and data envelopment analysis (DEA). The approach advocates developing vendor‐order quantity solutions (referred to as supervendors) using MOP and then evaluating the efficiency of these supervendors on multiple criteria using DEA. Formulations are presented for both the MOP and DEA models. A case study is presented for a Fortune 500 company in a just‐in‐time (JIT) manufacturing environment.

Purchasing and supply chain management : analysis, planning and practice

Abstract: Over the past few years purchasing and supply management has been increasingly accepted as a key area for the improvement of a company's competitive advantage. Purchasing and Supply Chain Management introduces the reader to the key principles underlying purchasing and supply management. It provides them with an in-depth discussion of purchasing and supply issues both from a strategic and managerial perspective. Views on purchasing issues are, when possible, illustrated with research results from national and international specialist literature. This new edition includes new material on the value of Internet for purchasing market research, developing new leveraged purchasing strategies and portfolio management, how to get better results from suppliers, developing cost models and procurement and the EC-Directives.

The Impact of Web-Based Procurement on the Management of Operating Resources Supply

Abstract: SUMMARY The focus of this article is on the impact of Web-based order processing systems for procurement strategy in the management of maintenance, repair, and operating (MRO) supply. The management of MRO supplies has been little discussed in the literature, and in many organizations is undertaken in a devolved, decentralized, and uncoordinated fashion. Consequently, MRO procurement is often a poorly managed and non-value-added activity, yet MRO purchases may account for many millions of dollars of expenditure for organizations across most, if not all, industries. To explore the impact of Web-based procurement systems on MRO purchasing, a Delphi study was conducted providing access and analysis of commercially sensitive data.1 In this article, it is contended that greater information processing capability achieved through the use of electronic commerce, specifically Web-based procurement, will enable significant cost improvements and strategic leverage to be obtained through a more strategic approach to management of the typically low-value, high-variety goods and services that constitute the main category of MRO items. E-procurement of MRO items may be a so-called “killer application” on the basis of potential efficiency gains. Further, an important consequence of the reengineering of the MRO procurement process will be to raise the professional profile of the purchasing function through enhanced internal customer service and significant total cost improvements.

Supply Contract Competition and Sourcing Policies

Abstract: Advances in information technology have opened new venues for companies to create flexible supply chains by offering high-speed communication and tight connectivity. A growing number of companies are taking advantage of new opportunities to outsource portions of their production and other operations. Given the importance of the supplier selection process in the ultimate success of a product, a purchasing manager must understand the different sourcing strategies that she or he can use and the suitability of each sourcing arrangements for her or him. This paper provides an overview of the research that has been done in the fields of operations research and economics on the topic of sourcing strategies. In aggregate, this paper provides a blueprint of what market characteristics can heavily influence a buyer-supplier relationship and, hence, are important to identify and incorporate into the supplier selection process.

Project Procurement System Selection Model

Abstract: In the last two decades, there have been significant changes in the technical and economic conditions prevailing in the construction industry. To overcome the shortcomings of the traditional procur...

Public Technology Procurement and Innovation

Abstract: Studies public technology procurement as an instrument of innovation policy. This book intends to contribute to a serious reconsideration of public technology procurement from the complementary standpoints of innovation theory and innovation policy

Web-based e-catalog systems in B2B procurement

Abstract: E lectronic commerce (EC) has many possible definitions [1, 4, 6]; we define it as the use of electronic systems in the exchange of goods/services/information. There are two major divisions of EC on the Internet: consumer-oriented electronic commerce (CEC) and business-to-business oriented electronic commerce (BEC). Of the two, BEC is expected to grow more rapidly—from $114 billion in 1999 to $1.5 trillion in 2004 [5]. Electronic catalogs have become the entry point for both CEC and BEC and as such represent much of what is expected of EC. The benefits of e-catalogs for both

Key Factors in Bid Reasoning Model

Abstract: The bidding decision is a complex problem affected by numerous factors. The current study collected a list of determining factors from the results of past research and opinions of six experienced practitioners in competitive bidding. Based on these factors, a bid reasoning model was established to go deeply into the bid decision process. Differing from other earlier work, this model-oriented study focuses on the effects of the determining factors on four reasoning subgoals: competition, risk, company's position in bidding, and need for work. Their different contributions to each reasoning subgoal were reviewed under three main construction procurement methods, namely, unit rate contract, lump sum contract, and design/build contract. The Analytic Hierarchy Process technique was applied in this study. A survey questionnaire was developed with four hierarchies being formulated respectively for the four reasoning subgoals. The survey was conducted in two steps, the pilot survey among the six experienced pract...

Institutional reform in British construction: partnering and private finance

Abstract: The British construction industry is presently going through a period of rapid change. A combination of government-led reform initiatives, changes in government procurement strategies, and increasing exposure to international competition is focusing minds and shifting positions. This paper provides an analysis of the institutional aspects of these changes, identifying the root of the problems that the reforms are tackling, and indicating what the prospects of success might be. The paper starts with a historical overview of the evolution of what is here called the professional system, which has dominated the British industry for 150 years. This provides the context for the exploration of the two principal forces for change in the industry - the reform of contractual relations, especially the diffusion of partnering, and the shift of government procurement towards concession contracting in the shape of the Private Finance Initiative. In conclusion, the prospects for success are discussed, noting that the Br...

Reactive power pricing: a conceptual framework for remuneration and charging procedures

Abstract: A new electrical sector regulation is being implemented in different countries all over the world. The new regulation stresses the role of competitive markets for the procurement and remuneration of ancillary services. Among these services stand the ones associated with reactive power supply and transmission network voltage control in order to maintain the required system security levels. The object of this paper is twofold. On one hand, reactive power supply and voltage control services, which today are bundled, are decomposed in two types: (i) voltage profile management and reactive dispatch, and (ii) voltage regulation. A theoretical approach based on marginal pricing is proposed in order to clarify the principles to remunerate the suppliers and to charge the consumers of these services. On the other hand, a practical organization of reactive supply and voltage service markets is presented to be implemented in a competitive environment.

Contractor Selection for Design/Build Projects

Abstract: As traditional construction procurement approaches are found to be inadequate in meeting the demands and challenges of recent times, alternative procurement routes such as through management contracting or build-operate-transfer are increasingly being adopted. Although design-build is one of the more popular alternative procurement methods that also has a long history, it does not appear to have well-established contractor selection procedures. This paper focuses on developing a model for contractor prequalification and bid evaluation in design-build projects. For this purpose, it presents a comparative overview of some international practices in the design-build contractor selection process. The overall objective is to identify the core aspects of selecting a suitable bidder in order to achieve the best value for money. The strengths and weaknesses of current practices of contractor selection are highlighted while identifying some of the best practices followed in design-build projects by various clients.

Collective procurement management system

Abstract: A collective procurement management system which permits multiple potential purchasers of a specific item or service to submit orders for the item or service on an ongoing basis. As orders enter the system, they are grouped such that potential purchasers are may “cooperate” in generating a collective bulk order so that all participants may obtain discount/volume pricing. Once a threshold level of order volume is obtained as a result of multiple orders, the grouped order is submitted to the supplier for fulfillment. The order is then fulfilled at a volume pricing level although individual portions of the collective order are routed to a plurality of purchasers. The present invention also includes a Reverse Auction Process (RAP) which, in one embodiment, operates to allow potential purchasers to select a product or service and set a maximum price that they are willing to pay for the same. Following submission of this information to the system, possibly including orders for the same item from other potential buyers, potential vendors bid to supply the item to the relevant buyers requesting the item.

Managing business-to-business relationships throughout the e-commerce procurement life cycle

Abstract: E‐commerce technologies provide effective and efficient ways in which corporate buyers can gather information rapidly about available P/S (products and services), evaluate and negotiate with suppliers, implement order fulfillment over communications links, and access post‐sales services. From the supplier side, marketing, sales, and service information is also readily gathered from customers. Building and maintaining customer relationships is the key to success in e‐commerce and, unless service is maintained, customer loss may result, more than offsetting any cost efficiencies due to introducing e‐commerce technology. Since the core of e‐commerce is information and communications, support for managing customer relationships is available to those who know how to use it. Discusses how technology can be used to encourage and facilitate customer‐business relationships. Shows through a customer relationship life cycle model how the management of related procurement functions in customer companies can adjust to take advantage of these relationships.

Regulating Public Procurement, National and International Perspectives

Abstract: Because of its enormous economic power and susceptibility to corruption, public procurement - the purchase by government of goods and services - has come under increasing regulation as world trade expands. Three international leaders in public procurement law fully explain how the procurement award process must be managed to achieve its goals in global market economy. This work should educate government officials, trade lawyers, and students in how to comply with existing and emerging regulatory schemes as they: select a contractor and plan the contract, with detailed attention to terms, conditions and specifications; allow for national security, national industrial development, and environmental protection; get value for money and avoid waste of public funds; publicize contracts; combat corruption; secure successful completion of contracts; balance pressures to buy from domestic sources with the economic benefits of international competition; harness procurement power to promote social and environmental goals; enforce compliance with public procurement rules; and recognize circumstances under which discretion-based (rather than rules-based) initiatives may be more effective.

Public Technology Procurement and Innovation Theory

Abstract: Public technology procurement (PTP) occurs when a public agency places an order for a product or system which does not exist at the time, but which could (probably) be developed within a reasonable period. Additional or new technological development work is required to fulfil the demands of the buyer. This is the ‘ideal type’ of public technology procurement.

Modelling the price, performance and contract characteristics of IT outsourcing

Abstract: The rapidly increasing use of outsourcing for IT services, both in the public and private sectors, has attracted much interest from researchers and practitioners alike. While early studies of IT outsourcing were largely qualitative in nature, more recent studies have attempted to analyse the outcomes achieved in quantitative terms. This paper is consistent with the latter, but goes further by modelling the price, performance and contract characteristics that are relevant to IT outsourcing. A two-equation recursive regression model was used to analyse 48 contracts for IT support and maintenance. The results did not reveal any quantitatively significant price–performance trade-off, but did suggest that first-term contracts (i.e. the first ever contract awarded by a client for the provision of a particular IT service) were more expensive than repeat contracts. Although competitive tendering did not result in lower prices than directly negotiated contracts, it was associated with comparatively better performa...

Toward a new paradigm: simultaneous use of multiple project delivery methods

Abstract: Since World War II, the American strategy for infrastructure procurement has evolved to rely primarily upon a single delivery method, design/bid/build. While this strategy was used to implement massive federal investment in highways, transit systems, and wastewater treatment, it has restricted state and local flexibility in aligning the procurement process to achieve best value for locally funded projects. The engineering, procurement, and construction community in the United States has now recognized the limitations of a procurement process designed to support a single delivery method. Change is coming, and the transition to a new process will challenge public owners in novel, but meaningful ways. This paper focuses upon shifting from the current paradigm toward a new model that supports simultaneous use of multiple project delivery methods. The discussion and frameworks provided are the result of a variety of research efforts by the Infrastructure Systems Development Research team at the Massachusetts Institute of Technology. Studies of the history of American infrastructure, analyses of case studies across the country, development of decision support models for capital programming, and real applications to municipal infrastructure planning provide the underpinnings for the results and conclusions presented.

The impact of contracting out on the costs of refuse collection services: the case of Ireland

Abstract: This paper examines the impact of contracting out on the costs incurred by local authorities in providing refuse collection services. Using original survey data for the Republic of Ireland, three methods of estimating the impact of tendering are adopted. Crude comparisons of costs before and after tendering and the costs of local authorities versus private contractors indicate that tendering can yield savings of between 34 and 45 per cent. Using multivariate regression analysis to enable us to control for service characteristics confirms cost savings of around 45 per cent. The bulk of these cost savings are attributed to real efficiency gains as a result of contracting out.

A case‐based reasoning approach to the make or buy decision

Abstract: Discusses a hybrid computer‐based system designed to assist companies in the make or buy decision, which is arguably the most fundamental component of manufacturing strategy. The system employs both case‐based reasoning (CBR) and decision support system components including multi‐attribute analysis (MAA) and sensitivity analysis. As part of the development process, interviews were conducted with managers in ten multinational companies in order to determine current make or buy practice and elicit opinions on how the decision‐making process would be enhanced. The consensus was that a formal structure was needed along with computerised support at various stages in the process. The model was developed conceptually from the analysis of these interviews with procurement managers and also through a thorough literature survey. The next stage was to implement the most important components of the system to enable feedback from procurement managers in one of the multinationals first interviewed. The results indicate that the system supports the procurement function in evaluating the make or buy decision and has led to enhanced communication with suppliers as well as within the multi‐functional procurement team.