Showing papers on "Procurement published in 2020"

Procurement 4.0 and its implications on business process performance in a circular economy

Abstract: The purpose of this study is to identify how Procurement 4.0 and digital transformations are related and how digital transformation impacts the intention to optimize the procurement process in the circular economy. The moderating effect of information processing capability is also investigated. We survey South African manufacturers and analyze survey results using the Partial Least Squares Structural Equation Modelling (PLS-SEM) approach to test the research hypotheses and our theoretical framework. Finally, a sample business process is simulated to evaluate how Industry 4.0 automation can influence organizational procurement process optimization and circular economy performance. The findings of this empirical study indicate that Procurement 4.0 strategy positively influences buyers’ intention to optimize business processes. Second, Procurement 4.0 performance review positively influences buyers’ intention to optimize business processes. Third, information processing capability moderates the effect of Procurement 4.0 performance review on buyers’ intention to optimize business processes. Finally, buyers’ intention to optimize business processes plays a key role in enhancing circular economy performance. The simulation results demonstrate the potential benefits from industry 4.0 applications in the procurement function in a circular economy.

Open Innovation 4.0 as an Enhancer of Sustainable Innovation Ecosystems

Abstract: Innovation matters. Business success increasingly depends upon sustainable innovation. Observing recent innovation best practices, the emergence of a new paradigm is traceable. Creating an innovative ecosystem has a multilayer effect: It contributes to regional digitalization, technological start-up emergence, open innovation promotion, and new policy enhancement retro-feeding the system. Public policy must create open innovation environments accordingly with the quintuple helix harmonizing the ecosystem to internalize emerging spillovers. The public sector should enhance the process, providing accurate legal framework, procurement of innovation, and shared risks in R&D. Opening the locks that confine the trunks of community, academic, industry, and government innovation will harness each dimension exploiting collective and collaborative potential of individuals towards a brighter sustainable future. In this sense, the aim of this study is to present how open innovation can enhance sustainable innovation ecosystems and boost the digital transition. For that, firstly, a diachronic perspective of the sustainable innovation ecosystem is traced, its connection to open innovation, and identification of the university linkages. Secondly, database exploration and econometric estimations are performed. Then, we will ascertain how far open innovation frameworks and in particular the knowledge flows unveiled by the university promote smart and responsible innovation cycles. Lastly, we will propose a policy package towards green governance, empowering the university in governance distributed ecosystem, embedded in the community, self-sustained with shared gains, and a meaningful sense of identity.

Donor heart and lung procurement: A consensus statement

Abstract: Heart and lung procurements are multiphased processes often accompanied by an array of complex logistics. Approaches to donor evaluation and management, organ procurement, and organ preservation vary among individual procurement teams. Because early graft failure remains a major cause of mortality in contemporary thoracic organ transplant recipients, we sought to establish some standardization in the procurement process. This paper, in this vein, represents an international consensus statement on donor heart and lung procurement and is designed to serve as a guide for physicians, surgeons, and other providers who manage donors to best optimize the clinical status for the procurement of both heart and lungs for transplantation. Donation after brain death (DBD) and donation after circulatory determination death (referred to as donation after circulatory death [DCD] for the remainder of the paper) for both heart and lung transplantation will be discussed in this paper. Although the data available on DCD heart donation are limited, information regarding the surgical technique for procurement is included within this consensus statement. Furthermore, this paper will focus on adult DBD and DCD heart and lung procurement. Currently, no certification, which is either recognized and/or endorsed by the transplant community at large, exists for the training of a cardiothoracic procurement surgeon. Nevertheless, establishing a training curriculum and credentialing requirements are beyond the scope of this paper.

Preparing construction supply chains for blockchain technology: An investigation of its potential and future directions

Abstract: Blockchain, a peer-to-peer, controlled, distributed database structure, has the potential to profoundly affect current business transactions in the construction industry through smart contracts, cryptocurrencies, and reliable asset tracking. The construction industry is often criticized for being slow in embracing emerging technologies and not effectively diffusing them through its supply chains. Often, the extensive fragmentation, traditional procurement structures, destructive competition, lack of collaboration and transparency, low-profit margins, and human resources are shown as the main culprits for this. As blockchain technology makes its presence felt strongly in many other industries like finance and banking, this study investigates the preparation of construction supply chains for blockchain technology through an explorative analysis. Empirical data for the study were collected through semi-structured interviews with 17 subject experts. Alongside presenting a strengths, weaknesses, opportunities, and threats analysis (SWOT), the study exhibits the requirements for and steps toward a construction supply structure facilitated by blockchain technology.

Modelling of sustainable food grain supply chain distribution system: a bi-objective approach

Abstract: Growing food demand, environmental degradation, post-harvest losses and the dearth of resources encourage the decision makers from developing nations to integrate the economic and environmental aspects in food supply chain network design. This paper aims to develop a bi-objective decision support model for sustainable food grain supply chain considering an entire network of procurement centres, central, state and district level warehouses, and fair price shops. The model seeks to minimise the cost and carbon dioxide emission simultaneously. The model covers several problem peculiarities such as multi-echelon, multi-period, multi-modal transportation, multiple sourcing and distribution, emission caused due to various motives, heterogeneous capacitated vehicles and limited availability, and capacitated warehouses. Multiple realistic problem instances are solved using the two Pareto based multi-objective algorithms. Sensitivity analysis results imply that the decision makers should establish a sufficient number of warehouses in each producing and consuming states by maintaining the suitable balance between the two objectives. Various policymakers like Food Corporation of India, logistics providers and state government agencies will be benefited from this research study.

Modelling procedure for the selection of steel pipes supplier by applying fuzzy AHP method

Abstract: The aim of this research is the evaluation and selection of suppliers by applying the fuzzy multi-criteria analysis. The study used fuzzy Analytic Hierarchy Process (FAHP) to choose the optimal supplier for the purchase of materials necessary for the production of pre-insulated pipes. Decision-makers selected among five suppliers based on nine criteria: material cost, pipe length, delivery time, type of payment, transport distance, quality, reliability, flexibility and relationship with customers. Effective execution of procurement, in this case, the procurement of material needed for the production logistics subsystem, influences the overall efficiency of the business. It is vital to make the right decision when selecting a supplier, because the optimal choice ensures lower cost and higher quality of the product itself, and therefore more competitiveness in the market.

Procurement decisions and information sharing under multi-tier disruption risk in a supply chain

Abstract: We consider a manufacturer's procurement decision in a three-tier supply chain (SC) under disruption risk. The manufacturer sources components from a single first-tier supplier (FT). The FT, in tur...

A Study on the Application of Blockchain Technology in the Construction Industry

Abstract: Blockchain technology has been recognized as one of the emerging technologies that can significantly innovate many industries. Major advantages of using blockchain technology includes reducing transaction costs, preventing data forgery and alteration, and further flexibility. The construction industry is generally considered as an industry that has great potentials for blockchain technology utilization mainly due to the high volume of transactions among various entities. Despite the perceived positive impact, there have been few cases of blockchain applications within the construction industry. This study is conducted with an aim of finding ways to apply blockchain technology to the construction industry. In order to identify potential application areas, construction lifecycle and project management knowledge areas are used in developing a survey questionnaire. Data collected from the survey is analyzed by employing importance performance analysis (IPA) method considering both applicability of the technology and anticipated impact from utilizing the technology. In relation to the construction project lifecycle, ‘Project Cost/Change Management’, ‘Contract Bidding and Formation’, and ‘Procurement Evaluation’ are emerged as top three candidates for blockchain application with high applicability and impact. Regarding the knowledge area, ‘Procurement Management’ and ‘Cost Management’ are identified as the main blockchain application areas with high applicability and impact. All the identified specific construction tasks with high applicability and impact are related to ‘Procurement’, ‘Contract’, and ‘Cost’. Therefore, it is reasonable to start focusing blockchain convergence efforts these areas and then expand them as the technology matures.

Environmentally Responsible Behavior and Sustainability Policy Adoption in Green Public Procurement

Abstract: Research has identified that there is a paucity of reviews covering green public procurement (GPP) in terms of environmentally responsible behavior and sustainability policy adoption. Using, comprehensively, the most recent (2017–2020) and relevant (Web of Science- and Scopus-indexed) empirical sources, our paper fills the gap in the literature by focusing on the main developing streams of research, that is: How GPP drives the circular economy; GPP of construction and building materials; environmental and supply chain management measures in GPP; the procurement of sustainable innovation; environmental policy objectives of GPP as regards energy, pollution, carbon footprint, and climate change; GPP as an environmental policy mechanism for production and use of sustainable goods and services; and GPP as an integral component of sustainable development and performance. Further investigations can explore hot topics related to the role of GPP in the automated algorithmic decision-making processes taking place in data-driven smart sustainable cities because the harnessing, among other things, of sensing and computing technologies, network connectivity systems, and the Cognitive Internet of Things will fulfill the incessant exigencies of public administration.

“Openness” of public governments in smart cities: removing the barriers for innovation and entrepreneurship

Abstract: Open innovation practices have been found to positively affect innovation and entrepreneurship due to the complementarities and uniqueness of resources and knowledge provided by each organization. Today, this approach may be even more important in the so called “smart cities”, where different private and public stakeholders cooperate to co-design and co-develop new cutting edge products and services aimed to create shared value through entrepreneurial behaviors. However, concrete examples of smart city projects revealed that public governments often do not have the necessary capabilities as well as innovative approaches to collaborate with companies and other stakeholders’ ecosystems. So, this paper aims at analyzing (open) innovation in public governments shedding lights on the barriers and challenges that public governments face in smart city development. The study uses primary data gathered through interviews from multiple smart city stakeholders to highlight how public governments should operate in the smart city context to overcome barriers and challenges, and to favor an entrepreneurial and innovation ecosystem as well as public-private collaborations. These barriers are related to: lack of rules; as all the others tasks and responsibility; scarce integrated view of the city planning; lack of fit of administrative styles & interdepartmental coordination and communication; risk adversity; data availability; disincentives & non flexible public procurement rules; lack of resources; lack of technological capabilities. Moreover, the study provides contributions for different and interrelated streams of research, in particular developing several implications in the field of entrepreneurship and smart city.

Risk-constrained stochastic power procurement of storage-based large electricity consumer

Abstract: Large electricity consumers can be either a large industrial consumer or a coalition of small electricity consumers. Large consumers (LCs) confront with various uncertainties due to the use of various power resources in the power procurement process, such as renewable resources, self-generation units, forward contracts, and pool market. These uncertainties can be lead to many financial risks for LCs. In this paper, the stochastic power procurement problem of large consumers is solved, and the new risk-measurement method is used to analyze the large consumer risks in power procurement process. The mentioned risk-measurement method is called downside risk constraints (DRC) method, which is used to model the financial risk imposed from uncertain parameters along with the stochastic problems. According to obtained results, it can be concluded that DRC method is a non-equilibrium method, which is applied clearly as a constraint to the optimization problem. In addition by using the DRC, LC can experience lower-risk strategy in the power procurement problem. Also, using DRC can make the total cost of large consumer independent of scenarios, which led to the lower-risk experiencing by the large consumer. Finally, results are expressed that lower-risk cost in DRC is less than the cost of the worst scenario in stochastic programming.

Sustainable efforts, procurement outsourcing, and channel co-opetition in emerging markets

Abstract: Emerging markets have witnessed the logistics volume surge along with economic growth, which also brings environmental issues such as packaging waste. Therefore, many responsible logistics service providers (LSPs) are observed to put efforts in developing sustainable logistics. Such efforts improve the LSP’s brand image to expand the market potential, and benefit the original equipment manufacturers (OEMs) who use the LSP’s logistics service. In this paper, we consider an OEM and a LSP’s preferred outsourcing structures by incorporating the LSP’s sustainable efforts and the competition with the OEM when it has the self-branded business. The introduction of sustainable efforts alter the LSP’s cost structure, and eventually, the supply chain parties’ preferences over the OEM’s procurement outsourcing. For the OEM, the bundled outsourcing (outsourcing both procurement and logistics functions to the LSP) does not necessarily yield a lower procurement cost than only outsourcing the logistics, because the LSP possesses sufficient service pricing flexibility. Interestingly, the LSP prefers the OEM’s bundled outsourcing when the OEM’s brand image advantage is either not significant or very significant. The driving force is the tradeoff between the profits from product sales and outsourcing services. Lastly, we compare the environmental performances under alternative outsourcing structures, showing the simultaneous improvement of the OEM’s profits, the LSP’s profits, and the environmental performance is achievable when the OEM outsources the bundled functions of procurement and logistics.

Grand corruption and government change: an analysis of partisan favoritism in public procurement

Abstract: Incoming governments sometimes abuse their power to manipulate the allocation of government contracts so as to buy loyalty from cronies. While scandals suggest such practices are relatively widespread, the extent of such partisan favoritism is difficult to measure and the conditions under which it flourishes under-theorized. Drawing on theory regarding the role of institutions as constraints on corruption, we identify three spheres of political influence over government contracting and show how elites can manipulate two of those spheres to increase their opportunities to influence the procurement process and minimize external accountability, facilitating the corrupt allocation of contracts to partisan allies. Using an innovative big data methodology, we then identify the effects of a change in government on procurement markets in two countries, Hungary and the United Kingdom, which differ in terms of political influence over these institutions. We find that politically-favored companies secure 50–60% of the central government contracting market in Hungary but only 10% in the UK.

Reverse logistics optimization of an industrial air conditioner manufacturing company for designing sustainable supply chain: a fuzzy hybrid multi-criteria decision-making approach

Abstract: Magnified resource consumption and depletion of natural resources calls for non-flexible or strict regulations and penalties on industrial operations, increased rate of processing and reuse of waste material as a substitute for raw material and political and legal interventions at global scale. Product recovery involves reuse, repair, refurbishing, remanufacturing and materials recycling, requires an efficient network design known as reverse logistic network and offers economical benefits in terms of fewer procurement of raw material, inventory management and less disposal. In current study, a mixed integer linear programming model designed on a multi-stage reverse logistics network for product recovery is proposed which considers different recovery options-product remanufacturing, component reprocessing and material recycling for sustainable outcomes. The model is designed to find optimal solutions for fulfilling demand and revenue needs by focusing on strategic locations for collection centers, reprocessing centers, remanufacturing plants and transportation options and simultaneously achieving sustainability goals. The model is applied on an Indian based manufacturing unit of a Saudi Arabian Industrial Air conditioner manufacturing organization and the case is presented here. The model is converted into a multi-objective programming model in accordance with the importance of each objective suiting the business needs. All relevant objective functions are evaluated using BWM, AHP and FAHP methods to obtain weights for integration into a fuzzy linear programming model which eventually provides three separate results. The model applied has originality and uniqueness for applications to solve multi-objective problems under uncertain environment and tends to strike a balance between economic and environmental objectives. The study provides for a base for further scope covering uncertainty about the amount and quality of returned products and even can be implemented by practitioners and academics for making a significant contribution in improving the efficiency of supply chains.

Public Procurement in Law and Practice

Abstract: We examine a new data set of laws and practices governing public procurement, as well as procurement outcomes, in 187 countries. We measure regulation as restrictions on discretion of the procuring agents. We find that laws and practices are highly correlated with each other across countries, better practices are correlated with better outcomes, but laws themselves are not correlated with outcomes. To shed light on this puzzle, we present a model of procurement in which both regulation and public sector capacity determine the efficiency of procurement. In the model, regulation is effective in countries with low public sector capacity, and detrimental in countries with high public sector capacity because it inhibits the socially optimal exercise of discretion. We find evidence broadly consistent with this prediction: regulation of procurement improves outcomes, but only in countries with low public sector capacity. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

A review of construction and demolition waste management in Southeast Asia

Abstract: This study conducted a review of a wide array of documents related to construction and demolition waste (CDW) management in Southeast Asia (SEA). CDW definitions, current state of CDW generation and composition, CDW flow and institutional arrangements for CDW management were assessed. CDW generation was estimated in SEA countries where data are unavailable. The review results indicated the inadequacy of existing CDW management in almost all SEA nations, with a dearth of proper data on the amount of CDW generated and proportions of CDW components. Insufficient legal documents designed for CDW and unclear assignment of prime responsibilities for CDW management have also been observed. The SEA’s high ratio of CDW generation to the construction industry’s value added implies a great waste burden that construction activities there are causing compared to their contribution to the regional economy. This study suggested a need for more holistic and aggressive methods of sustainable CDW management, namely: developing legalised systematic approaches to CDW data collection and database establishment; enabling public private partnership models, which involve the private sector in establishing recycling facilities and internalise informal actors in formal CDW management arrangement; applying recycling-favourable policies such as green public procurement, along with disposal fee schemes.

Medicine shortages and challenges with the procurement process among public sector hospitals in South Africa; findings and implications

Abstract: Medicine shortages are a complex global challenge affecting all countries. This includes South Africa where ongoing medicine shortages are a concern among public sector hospitals as South Africa strives for universal access to healthcare. The objectives of this research were to highlight challenges in the current pharmaceutical procurement process for public sector hospitals. Subsequently, suggest potential ways forward based on the findings as the authorities in South Africa seek to improve the procurement process. Qualitative in-depth interviews were conducted with 10 pharmacy managers in public sector hospitals in the Gauteng Province, South Africa. A thematic content analysis was performed, with transcripts coded by two of the authors. Coding was discussed until consensus was reached. Categories were developed and grouped into themes. The ‘Procurement process’ emerged from the data as the overarching theme, rooted in three main themes: (i) The buy-out process that was used to procure medicines from suppliers other than the contracted ones; (ii) Suppliers not performing thereby contributing to medicine shortages in the hospitals; and (iii) Challenges such as the inaccuracy of the electronic inventory management system used in the hospitals. Effective management of contracts of suppliers by the Provincial Department of Health is crucial to ensure accessibility and availability of essential medicines to all citizens of South Africa. Ongoing monitoring and support for the future use of computerised inventory management systems is important to reduce medicine shortages, and this is being followed up.

The risk of corruption in public pharmaceutical procurement: how anti-corruption, transparency and accountability measures may reduce this risk.

Abstract: Background: The goal of the public procurement of pharmaceuticals is to purchase sufficient quantities of high-quality pharmaceuticals at cost-effective prices for a given population. This goal can...