Showing papers on "Procurement published in 2007"

Dependence Asymmetry and Joint Dependence in Interorganizational Relationships: Effects of Embeddedness on a Manufacturer's Performance in Procurement Relationships

Abstract: This study of the procurement relationships of two major U.S. auto manufacturers examines the effects of two dimensions of organizational interdependence on the performance of those relationships f...

Public-Private Partnerships: Principles of Policy and Finance

Abstract: Over the last decade or so, private-sector financing through public-private partnerships (PPPs) has become increasingly popular around the world as a way of procuring and maintaining public-sector infrastructure, in sectors such as transportation (roads, bridges, tunnels, railways, ports, airports), social infrastructure (hospitals, schools, prisons, social housing) public utilities (water supply, waste water treatment, waste disposal), government offices and other accommodation, and other specialised services (communications networks or defence equipment). This book, based on the author's practical experience on the public- and private-sector sides of the table, reviews the key policy issues which arise for the public sector in considering whether to adopt the PPP procurement route, and the specific application of this policy approach in PPP contracts, comparing international practices in this respect. It offers a systematic and integrated approach to financing PPPs within this public-policy framework, and explains the project-finance techniques used for this purpose. The book deals with both the Concession and PFI models of PPP, and provides a structured introduction for those who are new to the subject, whether in the academic, public-sector, investment, finance or contracting fields, as well as an aide memoire for those developing PPP policies or negotiating PPPs. The author focuses on practical concepts, issues and techniques, and does not assume any prior knowledge of PPP policy issues or financing techniques. The book describes and explains: the different types of PPPs and how these have developed; why PPPs are attractive to governments; general policy issues for the public sector in developing a PPP programme; PPP procurement procedures and bid evaluation; the use of project-finance techniques for PPPs; sources of funding; typical PPP contracts and sub-contracts, and their relationship with the project's financial structure; risk assessment from the points of view of the public sector, investors, lenders and other project parties; structuring the investment and debt financing; and, the key issues in negotiating a project-finance debt facility. In addition, the book includes an extensive glossary, as well as cross-referencing. It reviews the PPP policy framework and development from an international perspective. It covers public- and private-sector financial analysis, structuring and investment in PPPs. No prior knowledge of project financing required.

An empirical study of the implementation of green supply chain management practices in the lectrical and electronic industry and their relation to organizational performances

Abstract: This study aims to investigate the green supply chain management practices likely to be adopted by the electrical and electronic industry in Taiwan, which is dominated by Original Equipment Manufacturing and Original Designing and Manufacturing manufacturers, after the European Union implementation of the Restriction of Hazardous Substances and Waste Electrical and Electronic Equipment directives. The relationship between green supply chain management practices and environmental performance, as well as financial performance, is studied. The approach of the present research includes a literature review, in depth interviews and questionnaire surveys. The companies in the electrical and electronic industry approved by the International Organization for Standardization 14001 certification in Taiwan before December 2004 were sampled for empirical study. The data were then analyzed using statistical package for the social sciences, and structural equation modelling was used as a path analysis model to verify the hypothetical construction of the study. The results indicate that the original equipment manufacturing and original designing and manufacturing manufacturers in Taiwan's electrical and electronic industry have adopted green procurement and green manufacturing practices in response to the current wave of international green issues and have generated favorable environmental and financial performances for the respective companies.

Reliability and Competitive Electricity Markets

Abstract: Despite all of the talk about “deregulation” of the electricity sector, a large number of non-market mechanisms have been imposed on emerging competitive wholesale and retail markets. These mechanisms include spot market price caps, operating reserve requirements, non-price rationing protocols, and administrative protocols for managing system emergencies. Many of these mechanisms have been carried over from the old regime of regulated monopoly and continue to be justified as necessary responses to market imperfections of various kinds and engineering requirements dictated by the special physical attributes of electric power networks. This paper seeks to bridge the gap between economists focused on designing competitive market mechanisms and engineers focused on the physical attributes and engineering requirements they perceive as being needed for operating a reliable electric power system. The paper starts by deriving the optimal prices and investment program when there are price-insensitive retail consumers, and their load serving entities can choose any level of rationing they prefer contingent on real time prices. It then examines the assumptions required for a competitive wholesale and retail market to achieve this optimal price and investment program. The paper analyses the implications of relaxing several of these assumptions. First, it analyzes the interrelationships between regulator-imposed price caps, capacity obligations, and system operator procurement, dispatch and compensation arrangements. It goes on to explore the implications of potential network collapses, the concomitant need for operating reserve requirements and whether market prices will provide incentives for investments consistent with these reserve requirements.

Methods and apparatus for entity search

Abstract: Methods and apparatus that deliver a searching experience that is substantially akin to consultation with a human expert, and that satisfies a user's information need in fulfilling projects such as purchasing, shopping, procurement, bartering, requesting for quotes, in online retail, traditional retail, wholesale, health care, travel, real estate, restaurant-going, entertainment, logistics, and sourcing are disclosed. Search results often contain entities that provide services and products. Records being searched are associated with industry sectors in a broad sense. Industry sector information is first derived from a user query; and is used in determining relevant and adequate additional questions for a searcher, and in matching, ranking, and presenting search results.

Antecedents and Consequences of Internet Use in Procurement: An Empirical Investigation of U.S. Manufacturing Firms

Abstract: This paper examines the antecedents and consequences of Internet use in the procurement process. Drawing upon the resource-based view (RBV) of the firm and the technology, organization, and environment framework, we develop an integrative model that examines the antecedents and consequences of Internet use in two stages---the search stage and the order initiation and completion (OIC) stage---of the procurement process. The model enables us to deconstruct both the usage and the performance aspects of information technology (IT) in business processes, and to provide insights into the enablers of use and business value. The model is estimated with survey data from 412 firms. Our results suggest that while some resources, such as procurement-process digitization, influence Internet use in both the procurement stages, other resources, such as the diversity of organizational procurement knowledge, impact Internet use in only one stage. We also find that Internet use in the OIC stage has a more significant impact on procurement-process performance than use in search. This study extends the digital capabilities and firm performance literature in the context of electronic procurement. This study also contributes to the small but emerging stream of literature that investigates antecedents, the extent, and implications of IT use holistically.

A Stochastic Programming Approach to Electric Energy Procurement for Large Consumers

Abstract: This paper provides a technique based on stochastic programming to optimally solve the electricity procurement problem faced by a large consumer. Supply sources include bilateral contracts, a limited amount of self-production and the pool. Risk aversion is explicitly modeled using the conditional value-at-risk methodology. Results from a realistic case study are provided and analyzed

Business‐to‐business e‐procurement: success factors and challenges to implementation

Abstract: Purpose – The paper seeks to pursue the understanding of current business‐to‐business e‐procurement practices by describing the success factors and challenges to its implementation in the corporate setting.Design/methodology/approach – Members of the Institute for Supply Management and the Council of Logistics Management were asked to respond to a survey questionnaire. Factor analysis was used to analyze data from valid responses received from 185 firms.Findings – Factor analysis resulted in three e‐procurement success factors (SF):supplier and contract management; end‐user behavior and e‐procurement business processes; and information and e‐procurement infrastructure. Three challenge‐to‐implementation factors (CIF) also emerged: lack of system integration and standardization issues; immaturity of e‐procurement‐based market services and end‐user resistance; and maverick buying and difficulty in integrating e‐commerce with other systems.Research limitations/implications – A representative sampling design s...

Performance of PPPs and Traditional Procurement in Australia

Abstract: This report compares the performance of 21 public-private partnerships (PPPs) and 33 traditional procurement projects in Australia. Costs and timeliness were measured for the construction and management of public infrastructure projects. It was found that PPPs are significantly more cost efficient than traditional procurement. In addition, traditional projects were more likely to have time over-runs than PPPs, relative to the budget.

Strategic Issues in Public-Private Partnerships: An International Perspective

Abstract: Preface. Acknowledgements. Introduction: 1.1 Public-private spectrum, 1.2 History, 1.3 Global perspective, 1.4 Structure of this book, References. Characteristics of Public-Private Partnerships 2.1 Definitions, 2.2 General characteristics of PPPs, 2.2.1 Creating PPPs, 2.2.2 The functioning of PPPs, 2.3 Construction sector PPPs, 2.4 Problems in PPP practice, 2.4.1 Product performance, 2.4.2 Process performance, 2.5 Summary, References. Procurement Systems in Construction: Europe and USA 3.1 Procurement in construction, 3.2 PPP procurement systems, 3.2.1 Concessions, 3.2.2 Joint ventures, 3.2.3 Comparison, 3.3 European and American context, 3.3.1 Europe, 3.3.2 USA, 3.4 Summary, References. Concessions 4.1 Concept of concession arrangements, 4.2 State of the art, 4.2.1 United Kingdom, 4.2.2 Spain, 4.2.3 Portugal, 4.2.4 The Netherlands, 4.2.5 United States of America, 4.2.6 Other countries, 4.3 Value for money and motives, 4.3.1 United Kingdom, 4.3.2 Spain, 4.3.3 Portugal, 4.3.4 The Netherlands, 4.3.5 United States of America, 4.4 Tender and selection procedures, 4.4.1 Spanish system, 4.4.2 Anglo-Saxon model, 4.5 Performance of concession PPPs, 4.5.1 Product performance, 4.5.2 Process performance, 4.6 Lessons, 4.6.1 Conditions for success, 4.6.2 Improvements, 4.7 Summary,References. Highlighted: Concession Projects in Europe 5.1 European policy, 5.2 Concessions in schools: the case of Montaigne Lyceum, 5.3 Concessions in transport infrastructure: the case of Metro de Sevilla, 5.4 Concessions in hospitals: the case of West Middlesex University Hospital, 5.5 PPP in infrastructure: Europe, 5.5.1 Creating concession PPPs, 5.5.2 Procurement rules and selection criteria, 5.5.3 Performance, 5.6 Summary, References. Joint Ventures 6.1 Project-based joint ventures, 6.1.1 Characteristics, 6.1.2 Motives, 6.2 Complex urban area development, 6.2.1 Multi-function approach, 6.2.3 Multi-actor approach, 6.3 Organizational aspects of joint venture PPPs, 6.3.1 Scope and balancing, 6.3.2 Phasing and procedures, 6.3.3 Procurement and risks, 6.4 Performance of joint venture PPPs, 6.4.1 Product performance, 6.4.2 Process performance, 6.5 Lessons, 6.5.1 Conditions for success, 6.5.2 Improvements, 6.6 Summary, References. Highlighted: Joint Ventures Projects in the USA 7.1 American urban and regional policy, 7.1.1 Smart Growth, 7.1.2 New Urbanism, 7.2 Joint ventures in city redevelopment: the case of Baltimore, 7.3 Joint ventures in Transit Oriented Development: the case of Portland, 7.3.1 TOD characteristics, 7.3.2 TOD key points, 7.3.3 MAX Light Rail Project: Portland, Oregon, 7.4 PPP in complex urban area development: USA, 7.4.1 Creating joint venture PPPs, 7.4.2 Social and commercial benefits, 7.4.3 Performance, 7.5 Summary, References... The future of Public-Private Partnerships 8.1 Lessons, 8.1.1 Expectations, 8.1.2 Value for money, 8.1.3 General lessons, 8.2 Scope of PPPs, 8.3 Portfolio strategies, 8.3.1 Programs, 8.3.2 Regions, 8.4 Examples of portfolio partnerships, 8.4.1 NHS Local Improvement Finance Trust, 8.4.2 Schools for the Future, 8.5 Enhance PPPs, 8.5.1 New trends in PPPs, 8.5.2 PPP as a strategic choice, 8.5.3 Research agenda for the future, 8.6 Closing remarks. Bibliography. Index.

Pro-Poor Tourism: From Leakages to Linkages. A Conceptual Framework for Creating Linkages between the Accommodation Sector and ‘Poor’ Neighbouring Communities

Abstract: The concept of pro-poor tourism (PPT) has in recent years received attention from academia, key industry and donor organisations. While several ‘How to…?’ manuals have been written, little emphasis has so far been given to situating the PPT debate within the general literature on tourism and development. This paper contributes to the PPT debate by linking macro-economic concepts such as leakages and multipliers to micro-economic action opportunities for the mainstream accommodation sector in developing countries. As such it brings together the well-established tourism literature on economic impacts on the macro level with the more recent PPT literature that focuses on action on the ground. A conceptual framework for analysing and developing linkages between the accommodation sector and ‘poor’ neighbouring communities is suggested. This framework is based deductively on a critical review of the literature, coupled with first-hand experience in PPT action-research. It is suggested that PPT action opportunities encompass both core and non-core activities within the accommodation sector. Bringing together a wide range of past and present research, four types of potential linkages are proposed which are (1) employment; (2) sourcing and procurement; (3) SMME development and outsourcing; and (4) other types of partnerships such as donations.

Sustainable procurement in practice: Lessons from local government

Abstract: By committing to green procurement, the UK government has taken a key initial step towards sustainable development. But can this be put into practice? This policy analysis explores the background to green procurement in English local government through desk research and data collection, including interviews with five local authorities. It finds that green procurement has been encouraged through legislation, providing information and dismantling barriers, but momentum was lost following the Gershon review. Implementation of the new action plan would ensure green procurement becomes embedded within government procurement. New information to link up green procurement with organisational goals would also expand the horizons of green procurement.

Procurement effects on trust and control in client-contractor relationships

Abstract: Purpose – This paper aims to investigate how construction clients currently deal with procurement and to analyse how the choices made during the buying process stages affect the combination of governance mechanisms and control types in client‐contractor relationships.Design/methodology/approach – Empirical data were collected through a survey of 87 Swedish construction clients.Findings – Current procurement procedures establish governance forms facilitating a focus on price, through output control, and authority, through process control. Since construction transactions are mostly characterized by high complexity and customisation and long duration, the theoretical framework prescribes a focus on trust and a somewhat lower focus on price and authority. Hence, from a transaction cost perspective, construction clients focus too much on price and authority and too little on trust. Since current procedures may cause problems in all stages of the buying process, the result suggests that partnering arrangements,...

Antecedents and Outcomes of E-Procurement Adoption: An Integrative Model

Abstract: Organizations increasingly emphasize the use of information technology in the procurement process. An integrative model of e-procurement adoption that captures its antecedents, two types of e-procurement use, and their respective effects on relationship development and perceived efficiency gains are proposed and empirically tested using the data collected from senior managers in four technology-intensive industries. Our findings indicate that the use of coordination e-procurement applications has both direct and indirect effects on perceived efficiency gains, while transactional application use can directly lead to efficiency gains. In addition, the use of e-procurement applications is strongly influenced by organizational learning ability and normative pressures. The findings provide a new perspective for managers in their future implementation of e-procurement applications.

Supply chain operations in the presence of a spot market: a review with discussion

Abstract: We survey the recent literature on the use of spot market operations to manage procurement in supply chains We present results in two categories: work that deals with optimal procurement strategies and work related to the valuation of procurement contracts As an example of the latter, we provide new results on valuation of a supply contract with abandonment option Based on our review, we also discuss the scope for doing further work

Empowering consumers: the creative procurement of school meals in Italy and the UK

Abstract: In many European countries something of a ‘moral panic’ has recently broken out around food, health and obesity. In Italy, roughly 20% of children and teenagers between the age of 6 and 17 years are overweight, and 4% of them are obese (Brescianini et al. , 2002). In the UK, where in 1999 19% of the 5-year-olds were overweight and 7% were obese (Mikkelsen et al. , 2005, p. 7), the most tangible sign of this growing concern is the Obesity Report (House of Commons, 2004). To address the devastating effects of the ‘obesity epidemic’ on national health and economy (see Fig. 1), this seminal government report emphasizes the role that public procurement can play by promoting healthy eating habits (House of Commons, 2004, pp. 68–70). To begin assessing the role of the public realm in supporting sustainable patterns of consumption that privilege ‘quality’ (i.e. local, seasonal, nutritious and fresh) food, in this paper we focus on school meals, an institution that has been propelled into the forefront of the current debate about health and well-being. Indeed, the school meal service not only constitutes an enormous market in its own right, capable to sustain quality food production systems. If, as Jackson (2004) points out, the school meal system is understood also as a system of social learning, as it should be, it affords the opportunity to promote more enlightened forms of consumer behaviour, particularly the kind of behaviour deemed necessary to make positive food choices in relation to healthy eating (Burke, 2002). To understand the scope for, and the limits to, the development of school meal systems that empower consumers by building their capacity to eat healthily, we compare two very different sociocultural environments of food choice and public procurement: Italy and the UK. While in Italy the dominant political, regulatory and cultural context explicitly encourages the implementation of pro-active public sector catering policies that prioritize local and organic foods, in the UK the numerous initiatives that are currently seeking to integrate sustainability criteria into food procurement in schools (DEFRA, 2005) still have to confront an uncertain regulatory environment in which local sourcing is perceived to be a risky and possibly illegal activity (Morgan and Sonnino, 2005). As we will show, these divergent national approaches to public food procurement represent different interpretations of a fundamentally ambiguous European macro-regulatory context, which is shaped, at the same time, by an old philosophy of free trade and by emerging ideals of sustainability. Despite their differences, however, both countries show clear signs of commitment to designing a sustainable school meal service, which we define as a service that delivers fresh and nutritious food; conceives healthy eating as part of a socially negotiated ‘whole school’ approach; and, wherever feasible, seeks to source the food as locally and as seasonally as possible. The most important vehicle for securing a sustainable school meals service is creative procurement policy , which takes a holistic view of the food chain because it recognizes that production and consumption need to be calibrated at the local level. Through creative procurement, local consumers are encouraged to appreciate the value of health and locally produced food because this is the foundation stone of a sustainable school meals service.

Public procurement and innovation: Towards a taxonomy.

Abstract: The role of public procurement as an instrument to stimulate innovation has been increasingly emphasized by European policymakers. This perspective raises demand for the understanding of public procurement as an activity taking place in a variety of different procurement contexts and as an act of innovation. Accordingly, this paper proposes a taxonomy of public procurement and innovation, combining interactive learning and evolutionary perspectives on innovation processes to account for the broad range of different ‘interaction environments’ or ‘resource interfaces’ in which government or public sector organizations may act as lead users of innovations. On this basis, the taxonomy draws practical policy implications for the design of programmes and initiatives for the public procurement of innovations.

Public procurement, public value and the northern ireland unemployment pilot project

Abstract: This paper analyses the regulatory, commercial and socio-economic goals underlying UK public procurement policy, highlighting the conflicts inherent between them and arguing that there is an overemphasis on commercial goals. A critique of the market model leads to consideration of the utility of the ‘public value’ concept as a means of assessing the achievement of public procurement goals in a balanced way through a greater emphasis on public consultation and the impacts and outcomes of procurement. An analytical framework is proposed, based on public value, against which to assess the delivery of public procurement policies. The framework is used to analyse a pilot project conducted in Northern Ireland on increasing employment through public service and construction projects. The paper demonstrates the achievement of a range of procurement goals and values and concludes by calling both for further research into the validity of the concept of public value and more extensive application of the framework.

A Comparison of Buyer-Determined and Price-Based Multiattribute Mechanisms

Abstract: Reverse auctions are fast becoming the standard for many procurement activities. In the past, the majority of such auctions have been solely price based, but increasingly attributes other than price affect the auction outcome. Specifically, the buyer uses a scoring function to compare bids and the bid with the highest score wins. We investigate two mechanisms commonly used for procurement in business-to-business markets, in a setting in which buyers' welfare is affected by exogenous nonprice attributes such as the quality, service, and past relationships. Under both mechanisms, bidders bid based on price, but in the “buyer-determined” mechanism, the buyer is free to select the bid that maximizes her surplus while in the “price-based” mechanism, the buyer commits to awarding the contract to the low price bidder. We find, both in theory and in the laboratory, that the “buyer-determined” mechanism increases the buyer's welfare only as long as enough suppliers compete. If the number of suppliers is small and the correlation between cost and quality is low, the buyer is better off with the “price-based” mechanism. These findings are intended to help procurement managers make better decisions in designing procurement mechanisms for a variety of settings.

Rapid Automated Monitoring of Construction Site Activities Using Ultra-Wide Band

Abstract: Monitoring construction site activities is a critical concern to most stakeholders (owners, contractors, architects, engineers, suppliers, etc.) in a construction project. Successful projects are often determined by the level of awareness of project status or work task performance. Thus, information has inherent value for real-time or near real-time decision making. Good resource procurement and resource allocation of workforce, material, and equipment comes in play when job site conditions can be efficiently and effectively assessed. Semi- or automated technologies in the data collection and assessment process can assist in making fast and confident decisions. This paper introduces an emerging technology called Ultra Wide Band (UWB) for real-time location sensing and resource tracking. The technology, its use as data collection tool, preliminary data processing algorithms, experiments, and results are presented in the context of active work zone safety and material location tracking. Many more application areas exist where UWB might impact the field and project management level to overall benefit the construction industry’s competitiveness.

Buying social justice : equality, government procurement, and legal change

Abstract: 1. What is this book about? PART I: PRELIMINARIES 2. Roots 3. Status Equality Law and Policy 4. International and European Procurement Regulation 5. Buying Social Justice? PART II: THE WORLD TRADE ORGANIZATION AND PROCUREMENT LINKAGES 6. Contract compliance in the United States and Canada 7. Set-asides in the United States, Canada 8. Evolution of the Government Procurement Agreement Model and procurement linkages 9. Procurement linkages and developing countries PART III: EQUALITY LINKAGES AND THE EUROPEAN COMMUNITY 10. Procurement linkages and the 1980s reform of EC procurement regulation 11. Domestic procurement linkages during the 1990s and the chilling effect of European procurement regulation 12. Changing approaches to procurement linkages in the Community and beyond 13. Expansion of equality linkages in the Member States 14. Procurement linkages and the 2003 legislative reforms: a modus vivendi in sight? PART IV: INTERPRETATION 15. Interpreting the Government Procurement Agreement 16. EC public procurement law and equality linkages: foundations for interpretation 17. European public procurement law and equality linkages: government as consumer, government as regulator PART V: CONCLUSIONS 18. Reconciling social and economic approaches to public procurement

Th e Decision to Contract Out: A Study of Contracting for E‐Government Services in State Governments

Abstract: Government contracting, especially for information technology products and services, has accelerated in recent years in the United States. Drawing on the insights of privatization studies, the authors examine the economic and political rationales underpinning government decisions to contract out e-government services. This article tests the extent to which economic and political rationality influence governments’ contracting decisions using data from multiple sources: a survey conducted by National Association of State Chief Information Officers, a survey by the National Association of State Procurement Officers, the Council of State Legislatures, and macro-level state data from the U.S. Census Bureau. Important factors affecting the state-level contracting decision are population size, market size, the competitiveness of the bidding process, the professional management of contracts, the partisan composition of legislatures, and political competition. Political rationales appear to play a major role in state contracting decisions. Some arguments associated with markets and economic rationality are clearly politically motivated.

The Doha Round's Public Health Legacy: Strategies for the Production and Diffusion of Patented Medicines Under the Amended TRIPS Provisions

Abstract: The entry into force of the WTO TRIPS Agreement in 1995 transformed the international intellectual property system. The harmonization of basic intellectual property standards has operated to protect investment in innovation, limiting risks from unjustified free riding. Yet these same harmonized IP standards sharply curtailed the traditional capacity of suppliers of public goods, such as health care and nutrition, to address priority needs of less affluent members of society, particularly in (but not limited to) developing countries. In the Doha Declaration, the Waiver Decision of 30 August 2003 and the Article 31bis Protocol of Amendment, stakeholders concerned with re-opening policy space for the supply of newer pharmaceutical products pushed back against restrictive elements of the TRIPS Agreement. Governments around the world are in the process of deciding whether to ratify and accept the Article 31bis Amendment. Based on their Study for the International Trade Committee of the European Parliament, the authors argue that acceptance of the Amendment will provide a ?net benefit? for countries seeking to improve access to medicines. At the insistence of WTO delegations acting on behalf of the originator pharmaceutical industry lobby, Article 31bis regrettably is saddled with unnecessary administrative hurdles. Nonetheless, through skillful lawyering, political determination and coordinated planning, the system can be made to work. Among other options, expeditious back-to-back compulsory licensing linked with pooled procurement strategies may effectively achieve economies of scale in medicines production and distribution. The authors doubt that the international political environment would support renegotiation of an 'improved' solution. They express concern that failure to bring the Amendment into force will open the door to a campaign to undermine the Waiver Decision. Recent events in Brazil and Thailand illustrate both the opportunities and risks associated with implementing TRIPS exception mechanisms, and help to inform views on the negotiating environment. Specific proposals for regional cooperation in implementing the Amendment are laid out, and the authors emphasize the importance of pursuing concrete transfer of technology measures in support of developing country pharmaceutical manufacturing. Over-reliance on private market mechanisms for the supply of public health goods leaves the international community with an unresolved collective action problem on a large scale.