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Procurement

About: Procurement is a research topic. Over the lifetime, 25669 publications have been published within this topic receiving 334145 citations.


Papers
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Journal ArticleDOI
TL;DR: This work investigates how information asymmetry and procurement contracting strategies interact to influence the supply chain parties' incentives to collaborate, and identifies a simple strategy, expected margin commitment EMC, that effectively promotes collaboration.
Abstract: During development of an innovative product there is often considerable uncertainty about component production cost, and it is of interest for both the manufacturer and the supplier to engage in a collaborative effort to reduce this uncertainty and lower the expected cost. Despite the obvious benefits this brings, the supplier may be reluctant to collaborate as he fears revealing his proprietary cost information. We investigate how information asymmetry and procurement contracting strategies interact to influence the supply chain parties' incentives to collaborate. We consider a number of procurement contracting strategies, and identify a simple strategy, expected margin commitment EMC, that effectively promotes collaboration. The manufacturer prefers EMC if collaboration leads to a large reduction in unit cost and/or demand variability is low. Otherwise, a screening contract based on price and quantity is preferred. We also find that, paradoxically, ex post efforts to enhance supply chain efficiency may hinder ex ante collaboration that precedes production. This paper was accepted by Yossi Aviv, operations management.

183 citations

Patent
21 Dec 1990
TL;DR: An automated system and concomitant methodology for minimizing the procurement costs of products and for generating a list of selected products based on the results of the minimization is disclosed for the Business Volume Discount regime as discussed by the authors.
Abstract: An automated system and concomitant methodology for minimizing the procurement costs of products and for generating a list of selected products based on the results of the minimization is disclosed for the Business Volume Discount regime. The system processing covers purchasing situations wherein multiple vendors offer a plurality of products and the vendors give discounts based on the total dollar amount of business received from the purchasers. The processing effected by the system utilizes a linear programming technique to solve a model of the business volume discount regime given a variety of constraints.

183 citations

Journal ArticleDOI
TL;DR: In this paper, the main incentive issues in public-private partnerships and the shape of optimal contracts in those contexts are analyzed. And the authors discuss the trade-off between incentive and flexibility in PPP agreements and the dynamics of PPPs, including cost overruns.
Abstract: We build on the existing literature in public-private partnerships (PPP) to analyze the main incentive issues in PPPs and the shape of optimal contracts in those contexts. We present a basic model of procurement in a multitask environment in which a risk-averse firm chooses noncontractible efforts in cost reduction and quality improvement. We first consider the effect on incentives and risk transfer of bundling building and management stages into a single contract, allowing for different assumptions on feasible contracts and information available to the government. Then we extend the model in novel directions. We study the relationship between the operator and its financiers and the impact of private finance. We discuss the trade-off between incentive and flexibility in PPP agreements and the dynamics of PPPs, including cost overruns. We also consider how institutions, and specifically the risk of regulatory opportunism, affect contract design and incentives. The conclusion summarizes policy implications on the desirability of PPPs.

183 citations

Journal ArticleDOI
TL;DR: In this paper, the authors focused on the extent of these pre-contract time and cost overruns and the key attributes of both the private sector consortia and the public sector organizations that have significant bearing on the efficiency of the pre -contract processes are: the nature and strength of the consortium, the quality of the technical proposals they produce for the bid, and the quantity of their financial proposals.
Abstract: Despite the increasing popularity in the use of the public–private partnership concept as a procurement strategy, there have been reported cases of problems associated with the initial stages of the process in terms of unduly high bidding costs and pre‐contract time overruns due mainly to the protracted nature of the negotiations. Empirical research conducted in the UK has focused on the extent of these pre‐contract time and cost overruns. The key attributes of both the private sector consortia and the public sector organizations that have significant bearing on the efficiency of the pre‐contract processes are: the nature and strength of the consortium, the quality of the technical proposals they produce for the bid, and the quality of their financial proposals. For the public sector organizations they are the organizational capabilities and technical capabilities. The financial capabilities of the public sector are ranked lowest in influencing the procurement process. Whilst there was broad agreement on ...

182 citations

Journal ArticleDOI
TL;DR: In this article, the authors 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.
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.

182 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20231,696
20223,449
20211,142
20201,363
20191,503
20181,423