Showing papers on "Procurement published in 2014"
TL;DR: In this article, the authors focus on identifying barriers to the implementation of a green supply chain management (Green SCM) based on procurement effectiveness and a total of 47 barriers are identified, both through detailed literature and discussion with industrial experts and through a questionnaire-based survey from various industrial sectors.
623 citations
eBay1
TL;DR: The authors showed that renegotiation imposes significant adaptation costs and reduced form regressions suggest that bidders respond strategically to contractual incompleteness and that adaptation costs are an important determinant of their bids.
Abstract: Procurement contracts are often renegotiated because of changes that are required after their execution Using highway paving contracts we show that renegotiation imposes significant adaptation costs Reduced form regressions suggest that bidders respond strategically to contractual incompleteness and that adaptation costs are an important determinant of their bids A structural empirical model compares adaptation costs to bidder markups and shows that adaptation costs account for 75–14 percent of the winning bid Markups from private information and market power, the focus of much of the auctions literature, are much smaller by comparison Implications for government procurement are discussed (JEL D44, D82, D86, H57, L13, L74, R42)
305 citations
TL;DR: In this paper, the authors adopt the opposing theoretical views of legitimacy - institutional and strategic - in evaluating firm performance and top management commitment as antecedents to green procurement and green supplier development.
Abstract: This study adopts the opposing theoretical views of legitimacy - institutional and strategic - in evaluating firm performance and top management commitment as antecedents to green procurement and green supplier development. Additionally, the impact of green procurement and green supplier development on supplier performance is analysed. Using a sample of western European companies, we develop a structural equation model to test our hypotheses. We find that the buying firm's market performance positively relates to the adoption of green procurement. While financial performance has no effect on green procurement, top management commitment is found to be an important driver of both green procurement and green supplier development. Moreover, the relationship between green procurement and supplier performance is fully mediated by green supplier development. The paper addresses a research gap concerning firm-level antecedents for green procurement and green supplier development showing that both practices may impact supplier performance. Furthermore, it is shown that legitimacy concerns drive basic green procurement, whereas top management is decisive for advanced practices, such as green supplier development. © 2013 Taylor & Francis.
293 citations
TL;DR: In this article, a dedicated survey of public sector suppliers in the UK, using a probit model to investigate the influence of structural, market and innovation determinants on suppliers' perception of these barriers.
284 citations
TL;DR: A broad taxonomy of procurement policies and instruments that have emerged in OECD countries in response to perceived deficiencies and then compares these with the perceptions of firms using an analysis of a dedicated survey of 800 public sector suppliers in the UK as mentioned in this paper.
262 citations
TL;DR: In this article, the role of procurement in identifying and managing the intra-and interorganisational issues which impact supply chain resilience has been investigated in a systematic literature review conducted between 2000 and 2013 with the objective being to answer the single research question proposed.
Abstract: Purpose – The purpose of this paper is to understand the role of procurement in identifying and managing the intra- and inter-organisational issues which impact supply chain resilience. Achieving resilience along the supply chain in today’s turbulent business environment requires efforts from both internal and external elements of the extended enterprise. Design/methodology/approach – The systematic literature review was conducted between 2000 and 2013 with the objective being to answer the single research question proposed. To do so, a content analysis based on the literature was applied to 30 selected papers. Findings – The study revealed that procurement activities do make a significant contribution to creating supply chain resilience. Emerging from the literature review, certain intra- and inter-organisational issues were identified that could impact supply chain resilience. Also the possible actions that procurement could take to enable the enhancement of supply chain resilience were identified. Rese...
242 citations
TL;DR: In this paper, the authors propose that the hackathon has the potential to act in multiple ways, possibly as a backdoor to the traditional government procurement process, and as a form of civic engagement.
Abstract: At all levels, governments around the world are moving toward the provision of open data, that is, the direct provision to citizens, the private sector, and other third parties, of raw government datasets, controlled by a relatively permissible license. In tandem with this distribution of open data is the promotion of civic hackathons, or “app contests” by government. The civic hackathon is designed to offer prize money to developers as a way to spur innovative use of open data, more specifically the creation of commercial software applications that deliver services to citizens. Within this context, we propose that the civic hackathon has the potential to act in multiple ways, possibly as a backdoor to the traditional government procurement process, and as a form of civic engagement. We move beyond much of the hype of civic hackathons, critically framing an approach to understanding civic hackathons through these two lenses. Key questions for future research emphasize the emerging, and important, nature of this research path.
195 citations
TL;DR: A procurement module for a cloud broker which can implement C-DSIC, C-BIC, or C--OPT to perform resource procurement in a cloud computing context is proposed and it is indicated that the resource procurement cost decreases with increase in number of cloud vendors irrespective of the mechanisms.
Abstract: We present a cloud resource procurement approach which not only automates the selection of an appropriate cloud vendor but also implements dynamic pricing. Three possible mechanisms are suggested for cloud resource procurement: cloud-dominant strategy incentive compatible (C-DSIC), cloud-Bayesian incentive compatible (C-BIC), and cloud optimal (C-OPT). C-DSIC is dominant strategy incentive compatible, based on the VCG mechanism, and is a low-bid Vickrey auction. C-BIC is Bayesian incentive compatible, which achieves budget balance. C-BIC does not satisfy individual rationality. In C-DSIC and C-BIC, the cloud vendor who charges the lowest cost per unit QoS is declared the winner. In C-OPT, the cloud vendor with the least virtual cost is declared the winner. C-OPT overcomes the limitations of both C-DSIC and C-BIC. C-OPT is not only Bayesian incentive compatible, but also individually rational. Our experiments indicate that the resource procurement cost decreases with increase in number of cloud vendors irrespective of the mechanisms. We also propose a procurement module for a cloud broker which can implement C-DSIC, C-BIC, or C--OPT to perform resource procurement in a cloud computing context. A cloud broker with such a procurement module enables users to automate the choice of a cloud vendor among many with diverse offerings, and is also an essential first step toward implementing dynamic pricing in the cloud.
143 citations
TL;DR: In this article, the authors identify the main themes of green procurement in the private sector through a literature review of papers published between 1996 and 2013 and to develop some future research directions.
142 citations
TL;DR: In this paper, the authors present evidence on the perverse trade-off that first price auctions induce between low prices at the awarding stage and poor ex post performance when bids are not binding commitments.
Abstract: This paper presents evidence on the perverse trade-off that first price auctions induce between low prices at the awarding stage and poor ex post performance when bids are not binding commitments. By exploiting the different timing with which first price auctions were introduced in Italy to procure public works, this study finds that at least half of the cost savings from lower winning prices are lost because of ex post renegotiation. Screening the lowest price bid for its responsiveness prevents performance worsening but also reduces the initial cost savings by a third and induces delays in awarding the contract. (JEL D44, H54, H57, R42)
140 citations
TL;DR: In this article, a survey of 281 procurement files from 2007 to 2009 relating to eight product categories and four European Union (EU) member states was conducted to provide evidence of connections between sustainability policy goals included in public procurement tenders and offers.
Abstract: Purpose
– The purpose of this paper is to provide evidence of connections between sustainability policy goals included in public procurement tenders and offers and their achievement through contract award.
Design/methodology/approach
– Two hypotheses based on extant literature and the inducement–contribution theory were tested by means of a survey of 281 procurement files from 2007 to 2009 relating to eight product categories and four European Union (EU) member states. Data were analyzed using structural equation modeling.
Findings
– Findings indicate that public procurement was more effective in influencing socially responsible goals than environmental goals. In terms of supplier readiness, vendors achieved greater progress in delivering green than socially responsible operations.
Research limitations/implications
– The collection and analysis of data are based on procurement files, which is a new but also a complex procedure. In comparison to survey data, the data from procurement file analysis are less biased.
Practical implications
– Public procurement practitioners and sustainability policymakers should consider the use of public procurement as a lever to attain environmental and socially responsible goals.
Social implications
– Evidence has been provided to demonstrate the strategic use of public procurement impacts on environmental and socially responsible goals, thereby benefiting society.
Originality/value
– This study contributes in three main ways: first, by adding to existing, limited research on the use of public procurement as a lever of policy goals attainment; second, by examining environmental and socially responsible policy in one study; and third, through providing evidence across EU member states.
Patent•
24 Jan 2014
TL;DR: In this paper, a system and methods are disclosed for determining, through vehicle-to-vehicle communication, whether vehicles are involved in autonomous droning, and aspects of the disclosure related to determining ruminative rewards and/or aspects of vehicle insurance procurement/underwriting.
Abstract: System and methods are disclosed for determining, through vehicle-to-vehicle communication, whether vehicles are involved in autonomous droning. Vehicle driving data and other information may be used to calculate a autonomous droning reward amount. In addition, vehicle involved in a drafting relationship in addition to, or apart from, an autonomous droning relationship may be financially rewarded. Moreover, aspects of the disclosure related to determining ruminative rewards and/or aspects of vehicle insurance procurement/underwriting.
Patent•
24 Jan 2014
TL;DR: In this paper, a system and methods are disclosed for determining, through vehicle-to-vehicle communication, whether vehicles are involved in autonomous droning, and aspects of the disclosure related to determining ruminative rewards and/or aspects of vehicle insurance procurement/underwriting.
Abstract: System and methods are disclosed for determining, through vehicle-to-vehicle communication, whether vehicles are involved in autonomous droning. Vehicle driving data and other information may be used to calculate a autonomous droning reward amount. In addition, vehicle involved in a drafting relationship in addition to, or apart from, an autonomous droning relationship may be financially rewarded. Moreover, aspects of the disclosure related to determining ruminative rewards and/or aspects of vehicle insurance procurement/underwriting.
TL;DR: In this article, the supplier selection problem of a relief organization that wants to establish framework agreements with a number of suppliers to ensure quick and cost-effective procurement of relief supplies in responding to sudden-onset disasters is considered.
Abstract: In this study, we consider the supplier selection problem of a relief organization that wants to establish framework agreements (FAs) with a number of suppliers to ensure quick and cost-effective procurement of relief supplies in responding to sudden-onset disasters. Motivated by the FAs in relief practice, we focus on a quantity flexibility contract in which the relief organization commits to purchase a minimum total quantity from each framework supplier over a fixed agreement horizon, and, in return, the suppliers reserve capacity for the organization and promise to deliver items according to pre-specified agreement terms. Due to the uncertainties in demand locations and amounts, it may be challenging for relief organizations to assess candidate suppliers and the offered agreement terms. We use a scenario-based approach to represent demand uncertainty and develop a stochastic programming model that selects framework suppliers to minimize expected procurement and agreement costs while meeting service requirements. We perform numerical experiments to understand the implications of agreement terms in different settings. The results show that supplier selection decisions and costs are generally more sensitive to the changes in agreement terms in settings with high-impact disasters. Finally, we illustrate the applicability of our model on a case study.
TL;DR: In this paper, the extent of sustainable procurement practices amongst procurement directors/managers employed in public and private sector organizations in Malaysia, a developing country where socialization is underpinned by religious beliefs.
TL;DR: Analysis of the value m-business can provide for firms through the analysis of the post-adoption stages of usage and value of mobile business from an organizational perspective indicates that m- business usage has a positive and significant relationship with m- Business value.
Abstract: Mobile technologies have increasingly become an integral part of individuals’ work and personal lives. Although research exists in this domain, most of it focuses on the customer’s adoption factors rather than assessing the value or the impact of mobile business (m-business) usage on firms. The present study fills this gap in the literature through the analysis of the value m-business can provide for firms. The Technology-Organization-Environment framework, Diffusion of Innovation theory and Resource-Based theory ground this research’s conceptual model for assessing the post-adoption stages of usage and value of mobile business from an organizational perspective. The value of m-business includes the impact on marketing and sales, internal operations, and procurement. This research uses a mixed method research design; interviews are first conducted to develop a model to assess m-business usage, and survey data collected from 180 Portuguese organizations is then used to test the proposed model. The results indicate that seven of the nine proposed antecedents of m-business usage are significant, and that m-business usage has a positive and significant relationship with m-business value. Furthermore, the three dimensions of value (marketing and sales, internal operations, and procurement) are significant, but only two of them have direct positive impacts on firm performance. Implications of these findings for practice and research are discussed.
TL;DR: In this paper, a framework for supply chain risk management (SCRM) is proposed and is applied using the data collected from the data coll and the data available in the data collection.
Abstract: Recent years have witnessed a focus on managing risks in supply chains On the one hand, there are many cases where events like natural disasters, strikes and terrorism have significantly influenced the performance of organisational supply chains and in turn their competitiveness And on the other hand, operational activities and strategic decisions of the firms (concerning, for eg supply, procurement, production, delivery, commercialisation, demand management, planning, etc) can be different than expected and so create uncertainties Uncertainties, whether they are external or internal, impact organisations leading to increased supply chain risk Realising the potential implications of these situations on supply chain competitiveness, an attempt has been made to define risks and their sources and to identify the management that can help reduce the negative impact of risks on supply chains In this paper, a framework for supply chain risk management (SCRM) is proposed and is applied using the data coll
TL;DR: An integrated construction materials management model is defined and developed to address challenges related to reducing inventory, speeding delivery, and increasing the control of materials, thus decreasing the overall project cost.
01 Jul 2014
TL;DR: In this paper, the authors investigated the issue of channel coordination for a two echelon supply chain consisting of one manufacturer and one retailer, and developed a production-inventory model that considered the procurement cost per unit as a function of the production rate.
TL;DR: The results show that the proposed algorithm (OPT-ORS) achieves a good balance between the procurement cost and the user QoE for cloud-based VSPs and guarantees that reserved VM instances are fully utilized to satisfy the baseline user demand.
Abstract: The emergence of cloud computing provides a cost-effective approach to deliver video streams to a large number of end users with the desired user quality of experience (QoE). Under such a paradigm, a video service provider (VSP) can launch its own video streaming services virtually by renting the distribution infrastructure from one or more cloud service providers (CSPs). However, CSPs such as Amazon EC2 normally offer multiple pricing options for virtual machine (VM) instances that they can provide, such as on-demand instances, reserved instances, and spot instances. Such diverse pricing models make it challenging for a VSP to determine how to optimally procure the required number of VM instances in different types to satisfy dynamic user demands. Given the limited budget, a VSP needs to carefully balance the procurement cost and the achieved QoE for end users. In this paper, we investigate the tradeoff between the cost incurred by VM instance procurement and the achieved QoE of end users under Amazon EC2's pricing models, and formulate the VM instance provisioning and procurement problem into a constrained stochastic optimization problem. By applying the Lyapunov optimization framework, we design an online procurement algorithm, which approaches the optimal solution with explicitly provable upper bounds. We also conduct extensive trace-driven simulations and our results show that our proposed algorithm (OPT-ORS) achieves a good balance between the procurement cost and the user QoE for cloud-based VSPs. In the achieved near-optimal situation, our algorithm guarantees that reserved VM instances are fully utilized to satisfy the baseline user demand, on-demand VM instances are only rented to handle flash crowds, while more spot VM instances are rented than on-demand VM instances to serve user demand over the baseline due to their low prices.
TL;DR: In this paper, a regression discontinuity design analysis on a large database of Italian procurement auctions is presented, showing that the increased publicity requirement induces more entry and higher winning rebates, which reduces the costs of procurement and rationalizes public spending.
TL;DR: In this article, the authors illustrate the role of foresight for enhancing public procurement and innovation policy at the regional level in Lombardy, showing that regional foresight might help identify both long-term societal needs and the patterns of evolution of emerging technologies that can match these needs.
TL;DR: In this article, a Fuzzy Inference System (FIS) was used for green/sustainable supplier evaluation and selection in the medical device industry, and the authors concluded that how sustainable procurement can lead a manufacturer to move toward sustainable manufacturing.
Journal Article•
TL;DR: In this article, a wide variety of facets and levels of interaction with respect to user-producer relationships inasmuch as they influence the innovation process are reviewed and explored, with particular emphasis placed upon the role of governmental policies and their agencies.
Abstract: This paper reviews and explores a wide variety of facets and levels of interaction with respect to user–producer relationships inasmuch as they influence the innovation process. Particular emphasis is placed upon the role of governmental policies and their agencies. The contextural relevance, importance and experiences of technologically progressive suppliers and user–producer linkages (in a variety of forms) is examined. Whilst public procurement policies are seen to be of considerable importance their relative effectiveness depends upon the approach taken. In that respect a wide variety of examples from Europe, the USA and Japan are considered. Government's direct role is seen to be greatest where it is itself an important user. Public procurement can not only stimulate innovation in existing market structures but also catalyse firms to engage in new areas of activity thereby influencing the rate of diffusion of innovation, its diversity and wider form.
TL;DR: In this article, the authors identify and catalogue the different digital technologies and tools available for executing construction procurement activities so as to guide those involved in procurement on the options available to support the six basic procurement activities identified in ISO 10845.
TL;DR: In this article, the authors consider what an accounting for sustainability of production and supply chains might look like, and provide an overview of the issues associated with a broadening of accounting needed for sustainable supply chains.
Abstract: Growing interest in sustainability and corporate supply chains accompanies increased globalisation across developed and developing countries, a stronger focus on the logistics of procurement behind international trade, and information flows between parties about corporate economic, social and environmental performance. Accounting provides information to oil the wheels of supply chain relationships. The purpose of this paper is to consider what an accounting for sustainability of production and supply chains might look like. An overview is provided of the issues associated with a broadening of accounting needed for sustainable supply chains. The paper highlights: ongoing problems of scope and terminology, lack of a broad sustainability focus because of complexity which stunts the impact on decision makers, and the need for transdisciplinary teams to increase connectedness and performance of the supply chain. The need for further research relating to three issues is identified. First, who undertakes the accounting for supply chains; second, why should a business function account for supply chain involvement; and, third, what information is relevant to different functional managers?
TL;DR: In this article, the impact of municipal policies requiring governments to construct green buildings on private-sector adoption of the US Green Building Council's Leadership in Energy and Environmental Design (LEED) standard was studied.
Abstract: We study how government green procurement policies influence private-sector demand for similar products. Specifically, we measure the impact of municipal policies requiring governments to construct green buildings on private-sector adoption of the US Green Building Council's Leadership in Energy and Environmental Design (LEED) standard. Using matching methods, panel data, and instrumental variables, we find that government procurement rules produce spillover effects that stimulate both private-sector adoption of the LEED standard and investments in green building expertise by local suppliers. These findings suggest that government procurement policies can accelerate the diffusion of new environmental standards that require coordinated complementary investments by various types of private adopter.
TL;DR: In this paper, the authors show that it is not necessary to be big or to collaborate in order to make an impact on the market, as even smaller local authorities have the ability to affect.
Abstract: Public sector organizations are large buyers and, in previous research public sector, have been regarded to be able to affect the market through demand-driven innovation, especially if different public sector entities collaborate with each other. However, what this study shows is that it is not necessary to be big or to collaborate in order to make an impact on the market, as even smaller local authorities have the ability to affect. In fact, it could even be an advantage to be small. The important factor is to think strategically about purchasing and to have knowledge about the market.
01 Jan 2014
TL;DR: In this paper, a hybrid data framework is proposed to utilize real-time, GPS-based, point-speed data from mobile sources to augment previous investments in existing fixed sensors, and a methodology is described for data quality monitoring crucial for any transportation agency considering the use of commercially available probe data.
Abstract: With the growing prevalence of communications technologies, GPS, and the mobile internet, more and more real-time location information is collected by private companies and marketed for retail. This body of data offers transportation agencies potential opportunities to improve operations, but it also presents unique challenges. This article proposes a hybrid data framework to utilize real-time, GPS-based, point-speed data from mobile sources to augment previous investments in existing fixed sensors. In addition, a methodology is described for data quality monitoring crucial for any transportation agency considering the use of commercially available probe data. In order to answer questions that arise in conducting data procurement and sensor deployment strategies for transportation agencies, a systematic analysis of the performance trade-offs among a menu of data sources is described. The results presented in this article were generated from the first procurement of streaming probe data from the private sector conducted on behalf of the California Department of Transportation and executed at UC Berkeley. Third-party data were incorporated with loop detector data and travel times were estimated within the bounds of driver variability. This achievement was repeated over multiple weeks and multiple congested freeway sites. In one rural area where active loops did not exist, operational travel time performance measures were obtained. While penetration rates for GPS-based probe data are now suitable for travel time estimation on selected corridors, data fusion makes possible the effective use of data from multiple sources or providers; when data from multiple sources are fused, superior results are obtained.