Showing papers on "Procurement published in 2008"
TL;DR: In this article, the authors examine outsourcing from the transaction cost economics (TCE) perspective, where the transaction is made the basic unit of analysis and the procurement decision, as between make and buy, is made (principally) with reference to a transaction cost economizing purpose.
Abstract: This article examines outsourcing from the transaction cost economics (TCE) perspective. The transaction is made the basic unit of analysis and the procurement decision, as between make and buy, is made (principally) with reference to a transaction cost economizing purpose. As sketched herein, the ease of contracting varies with the attributes of the transaction, with special emphasis on whether preserving continuity between a particular buyer–seller pair is the source of added value. The basic regularity is this: as bilateral dependency builds up, the efficient governance of contractual relations progressively moves from simple market exchange to hybrid contracting (with credibility supports) to hierarchy. This last corresponds to the “make” decision, which, as viewed from the TCE perspective, is viewed as the organization form of last resort. The article successively describes the lens of contract approach to economic organization, the operationalization of TCE, different styles of outsourcing, qualifications to the foregoing and the main lessons of TCE for the supply chain literature.
918 citations
TL;DR: In this article, the authors synthesize major evolutions experienced by social enterprises across Europe and the key challenges they are facing; and specific members of the EMES European Research Network provide a more in-depth update as to current trends and debates in their respective countries.
Abstract: Purpose – Twelve years ago, the concept of social enterprise was rarely discussed in Europe, however it is now making significant breakthroughs in European Union (EU) countries. Within this context, the purpose of this paper is to synthesize major evolutions experienced by social enterprises across Europe and the key challenges they are facing; and specific members of the EMES European Research Network provide a more in‐depth update as to current trends and debates in their respective countriesDesign/methodology/approach – This paper is based on a comparative analysis of the different institutions (legal frameworks, public policies, supporting structures, public procurement policies …) which support the development of social enterprises in the different EU countries. To delimit the field, the paper relies on the “ideal‐type” social enterprise as defined by the EMES network: “Social enterprises are not‐for‐profit private organizations providing goods or services directly related to their explicit aim to be...
638 citations
TL;DR: In this paper, the authors developed a model linking positive relational capital, and its antecedents, supplier integration and supplier closeness, to buyer performance improvements and hypothesize that structural capital, as reflected in managerial communication and technical exchanges, is also positively related to buyer's performance improvements.
370 citations
TL;DR: In this article, a survey of more than 1,100 innovative firms in Germany found that public procurement and knowledge spillovers from universities propel innovation success equally. But the benefits of university knowledge apply uniformly to all firms.
Abstract: Public procurement has been at the centre of recent discussions on innovation policy on both European and national levels (e.g., Aho-Report, Barcelona Strategy). It has a large potential to stimulate innovation since it accounts for 16% of combined EU-15 GDP. We embed public procurement for innovation into the broader framework of public policies to stimulate innovation: regulations, R&D subsidies and knowledge infrastructure (i.e. basic research at universities). We synthesize the characteristics of all four instruments based on existing literature and quantitatively compare their effects on innovation success. Our empirical investigation rests upon a survey of more than 1,100 innovative firms in Germany. Our survey puts us in the position to trace all sources of valuable innovation impulses, namely public customers, law and regulations, universities and public funding for R&D. We relate these sources back to innovation success. We find that (non-defense related) public procurement and knowledge spillovers from universities propel innovation success equally. In a second step, we explore whether these effects vary across firms (e.g. size, location, industry). The benefits of university knowledge apply uniformly to all firms. However, public procurement is especially effective for smaller firms in regions under economic stress as well as in distributive and technological services. Based on these findings targeted policy recommendations can be developed.
315 citations
TL;DR: The first half of the sustainable consumption research exchange network (SCORE!) as mentioned in this paper focused mainly on developed economies, and here they propose to differentiate between measures that fit with mainstream beliefs and paradigms.
298 citations
TL;DR: In this article, a conceptual framework has been developed for the adoption of e-procurement, and this subsequently has been tested with data collected from companies in Hong Kong, and a framework is proposed based on the conceptual and empirical analysis.
262 citations
TL;DR: In this article, the authors examine the opportunities for fostering sustainable development through public sector sourcing from small and medium-sized enterprises (SMEs) and make suggestions on how these can be overcome.
258 citations
TL;DR: In this article, the authors present an overview of the main design features and drivers of the ITER magnets, and some of the recent issues and R&D results will be summarized.
Abstract: Procurement of the ITER magnets is due to start at the end of 2007/early 2008, with the launch of the longest lead time items, the conductor and the TF coil windings. The base design for procurement was established in 2001, and the build up of the Cadarache ITER team has been accompanied by a review of the most critical, or controversial, features of the 2001 design. At the same time, an urgent R&D program has been launched to complete the necessary verification of the design solutions that are proposed. In this paper an overview will be presented of the main design features and drivers, and some of the recent issues and R&D results will be summarized.
255 citations
TL;DR: In this article, the authors argue that governance of the dispersed state is being extended into the quasi-private realm of voluntary and community organisations and their activities, and distinguish the formal and operational dimensions of governance, and argue that the goal of partnership carves out a newly governable terrain, which is to be organized through the operational governance mechanisms of procurement and performance.
Abstract: In this article we argue that governance of the 'dispersed state' is being extended into the quasi-private realm of voluntary and community organisations and their activities. Focusing on public service delivery, we distinguish the formal and operational dimensions of governance, and argue that the goal of partnership carves out a newly governable terrain - the third sector - which is to be organised through the operational governance mechanisms of procurement and performance. The result is the attempted normalisation of VCOs as market-responsive, generic service providers, disembedded from their social and political contexts and denuded of ethical or moral content and purpose. Reprinted by permission of the Policy Press, University of Bristol, School for Advanced Urban Studies
235 citations
TL;DR: This work develops cost-allocation mechanisms with well-known properties from the cooperative game theory literature, such as budget balance, stability, and cross-monotonicity for a logistics network in which shippers collaborate and bundle their shipment requests to negotiate better rates with a common carrier.
Abstract: We study a logistics network in which shippers collaborate and bundle their shipment requests to negotiate better rates with a common carrier. In this setting, shippers can identify collaborative routes with decreased overall empty truck movements. After the optimal routes that minimize total cost of covering all the shippers' demands are determined, this cost is allocated among the shippers. Our goal is to devise cost-allocation mechanisms that ensure the sustainability of the collaboration. We first develop cost-allocation mechanisms with well-known properties from the cooperative game theory literature, such as budget balance, stability, and cross-monotonicity. Next, we define a set of new properties, such as a guaranteed discount from the standalone cost for each shipper, desirable in our setting, and propose several cost-allocation schemes that could lead to implementable solutions. We also perform a computational study on randomly generated and real-life data to derive insights on the performance of the developed allocation schemes.
193 citations
TL;DR: In this article, the authors explore the current status of the procurement role and identify the skills they need to develop in order to effectively manage the changes they are experiencing, from the perspective of 18 senior procurement professionals interviewed.
TL;DR: A structured approach to select the most suitable dyad supplier/purchased items with the purpose to streamline the procurement process is proposed and integrates cluster analysis and multi-criteria decision making techniques.
TL;DR: In this paper, a mechanism of centralised auctions for forward capacity contracts (or reliability options) is proposed, which combines controls by quantity and by price while stabilising investment in peak power plants and is compatible with energy and reserve markets.
TL;DR: In this paper, the authors explore patterns in the process of buying complex services and investigate how buyers of different kinds of services relate to these logics and how the degree of objectification of services varies during different stages of the procurement process.
TL;DR: A reactive power procurement market model is proposed here taking into consideration system security aspects, and the selected set of generators and zonal price components are determined by solving an OPF-based auction to maximize a societal advantage function.
Abstract: This paper proposes a two-level framework for the operation of a competitive market for reactive power ancillary services. It is argued that the first-level, i.e., reactive power procurement, be on a seasonal basis while the second-level, i.e., reactive power dispatch, be close to real-time operation. To this effect, a reactive power procurement market model is proposed here taking into consideration system security aspects. This procurement procedure is based on a two-step optimization model. First, the marginal benefits of reactive power supply from each provider with respect to system security are obtained by solving an optimal power flow (OPF) that maximizes system loadability subject to transmission security constraints imposed by voltage limits, thermal limits, and stability limits. Second, the selected set of generators is then determined by solving an OPF-based auction to maximize a societal advantage function comprising generators' offers and their corresponding marginal benefits with respect to system security, considering all transmission system constraints. The proposed procedure yields the selected set of generators and zonal price components, which would form the basis for seasonal contracts between the system operator and the selected reactive power service providers.
TL;DR: In this paper, the authors examined how client-contractor procurement procedures affect the balance between cooperation and competition (i.e., coopetition) in client-construction relationships.
Abstract: Client-contractor relationships are often criticized for being competitive and adversarial, rather than cooperative. The main purpose of this paper is to examine how construction clients’ procurement procedures affect the balance between cooperation and competition (i.e., coopetition) in client-contractor relationships. The empirical results, based on a survey to 87 Swedish construction clients, show that clients’ procurement procedures facilitate a focus on competition. It was also found that clients’ earlier experience of a certain procedure heavily affects their procurement choices, thereby preserving old behaviors. Although two-thirds of the clients wish to increase cooperation with contractors, this does not affect their procurement decisions. This study therefore concludes that the theoretical framework, based on transaction cost economics, is correct in prescribing more cooperation than is empirically observed in the construction sector. The theoretical framework can increase clients’ awareness of ...
TL;DR: In this paper, the authors investigated the technique of benchmarking to improve the quality of the public procurement process and discussed the importance of benchmarked to overcome perceived weaknesses with these processes.
Abstract: Purpose – This paper investigates the technique of benchmarking to improve the quality of the public procurement process and discusses the importance of benchmarking to overcome perceived weaknesses with these processes. This is followed by a case study of Sri‐Lanka, exploring the difficulties faced by public sector employees in separating the daily business of government from the political influences of its elected leaders.Design/methodology/approach – Initially the literature review was used to examine the key principles of government procurement and how they could be benchmarked. This formed the theoretical base for the discussion. The case study of Sri‐Lanka has been used very effectively to discuss the experiences of developing countries.Findings – It is revealed that reform solutions within government procurement systems must include measures that address issues of accountability, transparency, value for money, a professional work force and ethics.Research limitations/implications – The major limita...
TL;DR: In this paper, the authors developed a project success index for D&B projects in the Hong Kong context, which is assessed by the key project performance indicators of time, cost, quality, and functionality.
Abstract: A construction project is mostly initiated by the needs of the client. In order to satisfy the client's requirements in terms of time, cost, and quality, various procurement methods are recommended for selection to increase the chance of success for the complex sequence of activities. Design-build (D&B) integrates design and construction to overcome some of the hurdles inherent in the traditional design-bid-build method. It has been extensively used worldwide and its distinctive features are claimed to deal with the problems of the traditional design-bid-build method. An investigation into the determinants of successful D&B projects can therefore help set a benchmark study for industry practitioners to compare their project performance. To better indicate the success level of D&B projects, the writers developed a project success index for D&B projects in the Hong Kong context, which is assessed by the key project performance indicators of time, cost, quality, and functionality. Multiple regression analysis is then applied to show that the project nature, the effective project management action, and the adoption of innovative management approaches are the critical success factors for D&B projects. The identification of success criteria can furnish project participants with indicators to attain success for their D&B projects for benchmarking and control purposes. The predictors for D&B project success were also determined to enrich the knowledge base for the D&B procurement system.
TL;DR: The Procurement Risk Management (PRM) Group at Hewlett-Packard developed and implemented a mathematical model, business process, and software to measure and manage supply chain risks on the procurement side.
Abstract: Supply chain risks related to product demand, component cost, and availability uncertainties can have a significant impact on a manufacturing company's revenue and profits. The Procurement Risk Management (PRM) Group at Hewlett-Packard (HP) developed and implemented a mathematical model, business process, and software to measure and manage supply chain risks on the procurement side. In 2006, the software-enabled business process helped HP to manage over $7 billion in spending; this resulted in material-cost savings of $128 million. Over the past six years, HP has realized more than $425 million in cumulative cost savings using the PRM approach.
TL;DR: In this article, the authors analyze the major environmental aspects of furniture and analyze to which extent they are taken into consideration in public purchasing, i.e., in the calls for tenders.
TL;DR: In this article, the authors developed models for an alternative multi-site manufacturing system that has different suppliers, produces different products and serves different customers on a make-to-order (MTO) basis where backlogs are allowed.
TL;DR: In this article, the authors used survey data to analyze what type of resources and characteristics in particular influence the involvement of SMEs in public procurement and found that perceived lack of resources especially in legal expertise and administration is associated with low SME involvement.
28 Aug 2008
TL;DR: In this paper, the authors present an analytical framework for the management and reform of public procurement in the U.S. based on the concept of E-Procurement.
Abstract: International Public Procurement: Concepts and Practices, K.V. Thai PUBLIC PROCUREMENT: A CONCEPTUAL FRAMEWORK Framework for Assessing the Acquisition Function at Federal Agencies, U.S. Government Accountability Office Assessing Federal Procurement Reform: Has the Procurement Pendulum Stopped Swinging?, J.A. Pegnato Analytical Framework for the Management and Reform of Public Procurement, P.R. Schapper, J.V. Malta, and D.L. Gilbert EU Directives as Anticorruption Measures: Excluding Corruption-Convicted Tenderers from Public Procurement Contracts, T.M. Arnaiz Public Procurement Reforms in Africa: A Tool for Effective Governance of the Public Sector and Poverty Reduction, B. Basheka Simulation Approach to In-House versus Contracted Out Cost Comparisons, D.R. Deis, H. Schneider, C.G. Wilmot, and C.H. Coates, Jr. Public Procurement Organization: A Comparison of Purchasing's Organizational Roles and Responsibilities in the Public and Private Sectors, P.F. Johnson, M.R. Leenders, and C. McCue Service Sourcing, A. Ancarani How Many Vendors Does it Take to Screw Down a Price? A Primer on Competition in Procurement, J.M. Keisler and W.A. Buehring PROCUREMENT SYSTEMS Public Procurement in the United Nations System, T. Sakane EC Regime on Public Procurement, S. Arrowsmith U.S. Federal Government Procurement: Organizational Structure, Process, and Current Issues, K. Caravella Public Procurement in Germany, M. Essig, S. Dorobek, A. Glas, and S. Leuger China's Government Procurement Policy and Institutional Framework: History, Structure, and Operation, C. Fuguo Overview of the Government Procurement System in South Africa, P. Bolton Public Procurement in Cambodia, D. S. Jones Procurement Systems in Uganda, E. Agaba and N. Shipman Public Procurement in Post-Transitional Context: The Case of Estonia, V. Lember and V. Vaske Procurement Process in the Public Sector: An International Perspective, N. Caldwell and E. Bakker E-PROCUREMENT Key Issues in E-Procurement: Procurement Implementation and Operation in the Public Sector, S.R. Croom and A. Brandon-Jones Factors Influencing E-Procurement Usage, K. Dooley and S. Purchase Facilitators of Public E-Procurement: Lessons Learned from the U.K., U.S., and Australian Initiatives, K. Vaidya, G.C. Callender, and A.S.M. Sajeev Evaluation of Public E-Procurement Services Accessibility: A Multicriteria Approach, G. Bruno, E. Esposito, and M. Mastroianni The World Bank E-Procurement for the Selection of Consultants: Challenges and Lessons Learned, K. Leipold, J. Klemow, F. Holloway, and K. Vaidya E-Procurement Management in State Governments: Diffusion of E-Procurement Practices and Its Determinants, M.J. Moon PUBLIC PROCUREMENT METHODS AND PRACTICES Best Practices: Using Spend Analysis to Help Agencies Take a More Strategic Approach to Procurement, U.S. Government Accountability Office Contract Negotiations, W.C. Lawther Controlling Service Process Performance with Statistical Process Control, R.G. Kauffman Fixed Asset Disposal: Methods and Strategies for Disposing of Personal Property in the Public Sector, D. Matthews and E. Gibson Enhancing Use of Past Performance as a Source Selection Criterion, K.F. Snider and M.F. Walkner Ban-on-Negotiations in Tender Procedures: Undermining the Best Value for Money?, K. Kruger Bid Protests: Theory and Practice, R.E. Lloyd Decision Technological Foundations of Public Procurement Processes, C. Csaki and P. Gelleri Pricing Strategies and Cost Analysis in Public Procurement, R.G. Rhodd Public-Private Partnerships, L.L. Martin Market's Response to Contract Award Announcements: Government versus Corporate Contracts, S.J. Larson and A. Picou Economic Context of Public Procurement, G.C. Callender and D. Matthews Offset Policy Design in International Procurement, T.K. Taylor Regression Approach for Estimating Procurement Cost, G.W. Moore and E.D. White III Procurement Design: Lessons from Economic Theory and Illustrations from the Dutch Procurement of Welfare-to-Work Projects, S. Onderstal and F. Felso Index
TL;DR: In this paper, the authors evaluate how turnkey project deliveries create value for their customers and how the purchasing strategy of the buyer affects value creation, and they find that if the project marketing process of the seller and the buying strategy of a buyer are well aligned, value creation can be further facilitated.
TL;DR: This paper traces the development of the GGP concept, its spread to Asian countries, and a number of approaches used to expand GGP adoption, and identifies possible appropriate capacity-building solutions in order to facilitate the application of GGP in China.
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31 Oct 2008
TL;DR: In this paper, the authors present a review of the state of the art in public sector procurement, focusing on the following issues: procurement scope and development, strategic procurement and supply chain management, outsourcing strategies and relationships, and contract management and performance measurement.
Abstract: Preface PART ONE: OBJECTIVES AND DEVELOPMENT 1. Purchasing scope and development 2. Strategic procurement and supply chain management 3. Public sector procurement PART TWO: KEY PROCUREMENT ISSUES 4. Outsourcing 5. Quality management 6. Inventory management 7. Lead time and time Compression 8. Sourcing strategies and relationships 9. Price and total cost of ownership 10. Negotiations PART THREE: APPLICATIONS 11. Project procurement 12. Procurement of commodities 13. International and global sourcing 14. Capital procurement 15. Retail procurement and efficient consumer response (ECR) 16. Services procurement 17. Corporate social responsibility PART FOUR: E-PROCUREMENT SYSTEMS AND CONTRACT MANAGEMENT 18. E-procurement systems 19. Contract management and performance measurement
TL;DR: A growing body of theoretical and empirical evidence to support the promotion of awarding mechanisms with formal and informal devices, aimed at economic efficiency and effectiveness through the life of the contract, i.e., ex ante and ex post coordination as mentioned in this paper.
Abstract: There is a growing body of theoretical and empirical evidence to support the promotion of awarding mechanisms with formal and informal devices, aimed at economic efficiency and effectiveness through the life of the contract, i.e., ex ante and ex post coordination. Building on growing arguments to support negotiations instead of auctions, Bajari et al. [Bajari, P., McMillan, R., Tadelis, S., 2002. Auctions versus Negotiations in Procurement: An Empirical Analysis, Department of Economics, Stanford University, October] suggest that auctions perform poorly when projects are complex and contractual design is incomplete. Areawide contracts in bus and rail appear to fit this circumstance, in contrast to somewhat simple and relatively unambiguous bus route contracts. This literature argues theoretically and empirically that auctions (i.e., competitive tendering) can stifle communication between buyers (i.e., the regulator) and sellers (i.e., the service provider), preventing the buyer from utilising the contractor's expertise when designing the project. A growing number of authors promote the case for greater emphasis on establishing a credible regulatory scheme able to govern the procurement of public services ex post, and that focusing on introducing market mechanisms via competitive tendering per se does not guarantee better value for money. Implicit in the arguments is the need to develop trusting partnerships and (incomplete) commercial contracts with unambiguous incentive and penalty structures throughout the life of a contract, with market mechanisms such as competitive tendering always present as a way forward when operators fail to comply under reasonable notice. This paper develops these themes as a way of gaining a better understanding of negotiated performance-based contracts.
TL;DR: In this article, the authors evaluate interfirm cooperation among small manufacturing firms and find that networks of small firms work together on numerous activities such as marketing, procurement or manufacturing; however, they do not share the same resources.
Abstract: This article evaluates interfirm cooperation among small manufacturing firms. Networks of small firms work together on numerous activities such as marketing, procurement or manufacturing; however, ...
TL;DR: A case is presented where a scenario-based e-learning product namely 'supply chain simulator' is developed at KFUPM for an introductory technology course and results clearly suggest the benefits of using such a tool in enhancing student learning.
Abstract: Simulation-based educational products are excellent set of illustrative tools that proffer features like visualization of the dynamic behavior of a real system, etc. Such products have great efficacy in education and are known to be one of the first-rate student centered learning methodologies. These products allow students to practice skills such as critical thinking and decision-making. In this paper, a case is presented where a scenario-based e-learning product namely 'supply chain simulator' is developed at KFUPM for an introductory technology course. The product simulates a supply chain - a network of facilities and distribution systems that carries out the task of procurement and transformation of materials from manufacturer to customer. The product was put to test during four semesters and results of the survey conducted by the instructors and the students are presented. The results clearly suggest the benefits of using such a tool in enhancing student learning.
TL;DR: The positive relationship between number of suppliers and electronic procurement for custom goods is negatively moderated by deeper buyer-supplier system integration, which implies that such integration can help buyers obtain better "fit" for their customized requirements, an alternative to increasing fit by employing more suppliers as proposed in the extant literature.
Abstract: This research investigates the relationship between a manufacturer's use of information technology (IT) (particularly electronic procurement) and the number of suppliers in its supply chain. Will a manufacturer use more or fewer suppliers due to the increasing use of IT? Based on data from a sample of 150 U. S. manufacturers, we find no direct relationship between e-procurement and number of suppliers at the aggregate level. However, when we distinguish the type of goods purchased, we find that the use of electronic procurement is associated with buying from more suppliers for custom goods but from fewer suppliers for standard (or commodity) goods. It is possible that for commodity goods, an efficiently functioning transparent market ensures that a few suppliers are sufficient, whereas for custom goods the need for protection from opportunistic vendor holdup leads to the use of more suppliers. Further, the positive relationship between number of suppliers and electronic procurement for custom goods is negatively moderated by deeper buyer-supplier system integration. This implies that such integration can help buyers obtain better "fit" for their customized requirements, an alternative to increasing fit by employing more suppliers as proposed in the extant literature.