Efficiency Of Procurement Research Articles

DIGITAL TRANSFORMATION: IS THERE ANY LINK WITH MARKET PERFORMANCE OF PHARMACEUTICAL MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES IN KENYA

The business-operating environment in Kenya and especially in the City County of Nairobi has caused a large number of pharmaceutical Micro, Small, and Medium-Sized Enterprises report profit warnings and thus experience performance issues. Data from the World Bank for the previous two years indicate pharmaceutical MSMEs operating in Kenya have seen a decline in profits and stagnation. The study therefore sought to establish the effect of digital transformation elements, including e-procurement, e-marketing, e-payment, and telemedicine, on the market performance of pharmaceutical Micro, Small, and Medium Enterprises (MSMEs) in Nairobi City County, Kenya. The research examines the limited understanding of how these digital technologies influence market performance, particularly in the pharmaceutical MSME sector. The study employs a cross-sectional descriptive research design, surveying 122 MSMEs from an initial target population of 175, selected through proportionate and simple random sampling. The questionnaire was tested for validity and reliability using Cronbach's alpha with a threshold of 0.7. Quantitative data were analyzed through multiple regression and correlation analysis to determine the strength of the relationships between variables. The results reveal that e-procurement, e-marketing, e-payment, and telemedicine significantly and positively affect market performance. The findings suggest that these digital strategies enhance procurement efficiency, marketing outreach, financial transactions, and healthcare service delivery, ultimately improving the market performance of pharmaceutical MSMEs.

Revolutionizing Procurement: How AI & Data Analytics Driving Cost Effective Solutions in EPC

This paper, therefore, discusses the revolution brought by AI and Data Analytics in the procurement processes of EPC (Engineering, Procurement and Construction) and how each of the challenges, including cost control, enhanced efficiency and procurement downtime, could be solved using the two technologies. When the use of the procurement models is applied, the following benefits will be realized: supplier selection is facilitated using artificial intelligence, thereby automating the entire process; there is increased accuracy of costs compared to manual estimation, therefore reducing bias. The use of AI will allow better historical and real-time data analysis for procurement needs forecast, supplier evaluation and material cost prediction. Furthermore, machine learning algorithms can automate adjustments depending on real-time market variability, such for instance, a change in the price of the materials or a disruption in the supply chain, as well as execution flexibility regarding the project needs. Data Analytics also adds more weightage to procurement efficiency because it gives detailed analysis of the past and present procurement data. By utilizing state-of-the-art analytical frameworks, top managements are allowed to make powerful supplier analyses in relation to reliability, lead time, and cost of contracts prior to negotiations on contract supplier contracts and before contracting risks. What this study aims to do is to highlight real-life implementations of these technologies and how EPC firms can capitalize on these technologies to drive procurement efficiency, cost reduction, project delivery, and supplier relationship all for efficient project delivery. This paper thus provides a detailed discussion on the MI and TI of implementing AI and DA within procurement in the EPC sector via case studies and examples.

Improvement of Mro Material Procurement Efficiency Through the Six Sigma Concept at PT Krakatau Steel (Persero) TBK

PT Krakatau Steel (Persero) Tbk (PTKS) is a State-Owned Enterprise engaged in the production of steel and related services. The MRO Procurement Department is a procurement function to process MRO Material purchasing at PTKS. The main problem currently faced is the lead time for the MRO material procurement process which takes a long time, the reason is that procurement is often conducted by spot method and repeatedly for the same material. Too long lead times pose a risk to the smooth production process due to the unavailability of MRO materials when needed. Referring to the MRO Procurement Department's KPI, >85% of the number of POs (Purchase Orders) issued must have a lead time of <41 days, however, based on the actual historical data for 2022, the PO lead time achievement for the MRO material procurement process does not meet the target. Department's KPI, >85% of the number of PO’s (Purchase Orders) issued must have a lead time of <41 days, however, based on the actual historical data for 2022, the PO lead time achievement for the MRO material procurement process does not reach the target. An alternative solution used to speed up procurement lead times is implementing a Blanket Purchase Agreement (BPA) and/or Consignment Contract for MRO routine/consumable material types. The results obtained are that the long and complicated MRO material procurement process for the same type of material can be eliminated, which means that with the improvements made, the MRO Procurement Department can implement a more efficient procurement process.

Adaptive Strategies and Sustainable Innovations of Chinese Contractors in the Belt and Road Initiative: A Social Network and Supply Chain Integration Perspective

As global economic integration and rapid technological advancements transform international business, international engineering contracting has become essential for achieving sustainable development goals (SDGs). This paper investigates the significant impact of China’s strategic initiatives, notably the “Going Global” strategy and the Belt and Road Initiative (BRI), on the operational practices of Chinese enterprises involved in overseas investments. Central to this transformation is the Engineering, Procurement, and Construction (EPC) model, which emphasizes the integration of supply chain management and stakeholder collaboration to enhance performance in international EPC projects and underscores the crucial role of these elements in promoting sustainability. Incorporating insights from social network data analysis, this study reveals that contractors collaborating with various stakeholders—such as owners/consulting engineers, domestic and foreign customs departments, and group headquarters/design parties—exhibit a high degree of similarity in personnel profiles. This suggests that the internal organizational structure and personnel allocation of contractors could be optimized to enhance operational efficiency, aligning with the collaborative patterns identified. This study addresses a critical research gap by exploring how effective supply chain management and collaborative stakeholder engagement within multinational EPC projects contribute to sustainable outcomes. Employing advanced social network analysis software, the research examines the complex interactions among stakeholders and their influence on procurement dynamics. Findings indicate that strong relational networks and strategic collaborations significantly enhance procurement efficiency and project success, underscoring the importance of supply chain integration. Ultimately, integrating supply chain management principles into the EPC model not only offers innovative perspectives for advancing sustainability in international projects but also provides actionable insights for improving project outcomes within the BRI framework. This research underscores the pivotal role of supply chain organization and stakeholder cooperation in achieving sustainability objectives, thereby enriching the discourse on sustainable enterprise operation and supply chain management in the context of global initiatives.

The Impact of Academic Qualifications and Professional Training on Procurement Staff Performance in Tanzania: A Case Study of Morogoro Referral Hospital

This study investigates the crucial role of academic qualifications and professional training in enhancing procurement staff performance at Morogoro Referral Hospital, focusing on their impact across various procurement activities. The study utilizes a mixed research approach and a case study research design. The target population of the study comprised of individuals who are involved in procurement activities at Morogoro Referral Hospital. The sample size was 67 respondents selected through convenience and purposive sampling techniques. Data were collected by using questionnaire and interviews. Quantitative data were analyzed using descriptive statistics, while qualitative data is examined through thematic analysis. The study highlights the essential role of academic qualifications and professional training in boosting procurement staff performance, noting broad agreement on their benefits for foundational knowledge and critical skills such as supply chain management and negotiation. Despite varying levels of agreement on areas like supplier evaluation and risk mitigation, the overall positive impact is clear. It is recommended that organizations invest in targeted training programs to address performance gaps, particularly in risk mitigation and supplier evaluation, and ensure ongoing updates to keep staff current with regulations, technology, and best practices. This approach will enhance procurement efficiency and effectiveness, supporting organizational success.

The effect of transactional costs and competitive tendering on public procurement performance

The study determines the influence of transactional cost and competitive tendering on procurement performance. This study adopted an explanatory research design relying on primary source of data. Purposeful sampling technique was employed to obtain a sample size of 142 respondents. The findings of the study established that transactional cost has a positive and significant influence on procurement performance. Competitive tendering has a positive and significant influence on procurement performance. Competitive tendering has a positive and significant influence on transactional cost. This study is to help industries to understand that transactional costs and competitive tendering play a crucial role in achieving cost efficiency in public procurement.

Worldwide Trends in Public Procurement Efficiency Studies Under the Lens of Award Criteria

This study aims to review the existing research on public procurement efficiency related to the evaluation criteria in the bid process. These can be grouped into two main approaches based on the lowest price criterion (LP) or via a multi-criteria assessment (MC). To this end, a bibliometric analysis was carried out, including an advanced search by topic and content analysis. The results of the analysis were documents published from 2006 to the beginning of May 2024 by authors from 47 countries. Of these, 79 were related to the LP criterion and 125 to the MC assessment. The main findings of this study show that the research on efficiency in public procurement has evolved towards the use of both monetary and non-monetary criteria. This trend is more prevalent in countries with high economic performance. Despite public procurement efficiency being an international topic, more collaboration among researchers from different countries is necessary. Moreover, this study shows the focus on research on metrics and initiatives for implementing environmental criteria and the need to pay more attention to social efficiency.

Green public procurement and corporate environmental performance: An empirical analysis based on data from green procurement contracts

Green public procurement (GPP) is regarded as a vital tool for achieving energy conservation and emission reduction. This policy aims to guide enterprises towards cleaner production by creating market demand for green products on the demand side. However, it remains unclear whether GPP can genuinely improve corporate environmental performance. This study reviews relevant policy documents and constructs a wordlist of “green procurement contract" using the Word2vec model. By employing text analysis, we identify public procurement contracts that meet green standards. Subsequently, we match these contracts with data from China's A-share-listed companies to empirically test the impact of GPP contracts on corporate environmental performance. The findings reveal that GPP significantly enhances corporate environmental performance, primarily through conceptual governance effects, source governance effects, terminal governance effects, and supervision governance effects. Heterogeneity analysis indicates that this environmental incentive effect is particularly significant among non-state-owned enterprises and small and medium-sized enterprises. Additionally, the effect is more pronounced in regions with high government environmental awareness and moderate environmental enforcement intensity. Further analysis shows that GPP also improves corporate social responsibility performance and promotes corporate ESG performance, thereby fostering sustainable development. Moreover, the study points out that increasing the transparency of information disclosure, enhancing procurement efficiency, and maintaining the stability of procurement relationships all contribute to strengthening the environmental performance incentive effect of GPP. This article helps to deepen the understanding of the “proactive government” promoting the development of green economy and also provides theoretical reference for the breakthrough of corporate green transformation under the target of “dual carbon.”

The study of problems and priority areas for improving procurement in health care

Public procurement in the healthcare system (HCS) is a key factor in ensuring the viability of medical institutions and the quality of medical and pharmaceutical care they provide. The problem of improving the public procurement system has not lost its relevance in recent years, but it is considered mainly in the theoretical and applied aspect. Sociological research (questionnaire) as an effective tool for collecting information allows to explore the opinion of professionals who directly procure essential medicines, medical devices (MDs) and other equipment on the problems that are associated with the procurement planning and conducting processes. It will also help to identify possible ways to improve the efficiency of procurement in the healthcare system, in particular under martial law. The purpose of the study is to investigate the state and problems of organizing centralized and decentralized public procurement of medicines and medical devices, as well as to identify priority areas for their improvement. The survey made it possible to determine the current state and key problems in the sector of medical procurement at different levels of healthcare provision. The survey showed that the most commonly procured medicines, medical devices, reagents, test systems, and medical equipment are the most frequently used. When forming a need, the majority of respondents (84.4%) operate flexibly, depending on the situation, 9.4% use the consumption method, and 6.2% use the incidence method. At the same time, 56.3% of respondents are based on available financial resources, 25% rely on the list of medicines. The survey made it possible to identify the problems that arise in public procurement. These are, first of all, restrictions on procurement according to the National List (56.3%), non-fulfillment/violation of contract terms (18.8%), and creation of artificial obstacles (12.5%). If necessary, procurement of medicines not included in the National List is guided by protocols, state or local formularies. According to the survey, 50% of respondents emphasize the creation of a single list, while 6.3% of respondents are strongly against it. The areas of improvement of the public procurement system proposed by the respondents relate primarily to the regulatory framework (simplification and systematization, stability of the regulatory framework, in particular, regulatory lists; raising thresholds and expanding procurement through the e-catalog; expanding the use of non-price criteria; improving the procedures for procurement of high-value equipment and innovative medical technologies.

Analysis of the Effectiveness and Efficiency of the Procurement Process in the Procurement Department at PT. Bakrie Auto Parts

Every company is inseparable from the procurement of goods or services. With the procurement of goods or services being one of the factors that support the operational activities of a company and to maintain the survival of the company, especially companies engaged in the manufacturing industry. One of them PT Bakrie Auto parts also procure goods run by the procurement department, in the process of procuring goods PT Bakrie Auto parts is utilizing technological advances by conducting electronic procurement which aims to increase the effectiveness and efficiency of procurement. The purpose of this research is to determine the effectiveness and efficiency of the procurement process at PT Bakrie Auto parts. The data collection method in this study is the interview method and direct observation, with the analysis method in the form of quantitative non statistical analysis, namely the method of analyzing data without using statistical analysis. The implementation of the procurement of goods carried out by PT Bakrie Auto parts has been running effectively with an assessment of four indicators, namely: indicators of increasing transparency and accountability, indicators of supporting the monitoring process, indicators of meeting the needs of real team information access, and indicators of achieving goals. In addition, the implementation of procurement carried out by PT Bakrie Auto parts has also been running efficiently based on the results of the assessment of the use of the expenditure budget.

The role of e-procurement in promoting government transparency: Lessons from Surabaya

Background: This study examines accountability and transparency in the public procurement process, focusing on Surabaya, the first city to implement e-procurement reform. E-procurement leverages the latest information technology to improve procurement efficiency and transparency. Methods: A descriptive qualitative approach was used, using purposive sampling to gather in-depth insights from critical informants who thoroughly understood the research focus. Data were collected from various entities, including the Surabaya City Electronic Procurement Service (LPSE), the City Procurement Unit (ULP), and related public works and private auction companies. Findings: The implementation of e-procurement in Surabaya has succeeded in building an accountable and transparent system. This system has improved the procurement committee’s ability to justify and report the entire procurement process vertically to higher authorities and horizontally to the public. Despite this progress, some suppliers still engage in fraudulent practices, highlighting the need for continued vigilance and commitment. Conclusions: Although e-procurement has significantly improved accountability and transparency in the procurement process in Surabaya, the committee and suppliers need to uphold strong ethical standards to prevent fraud. The e-procurement system alone is not enough. This system must be supported by solid law enforcement and a commitment to integrity to fully realize its potential in creating a fair procurement environment. Novelty/Originality of this study: This study comprehensively evaluates e-procurement implementation in Surabaya, revealing improvements in accountability and transparency and remaining challenges. The findings offer an applicable model for other cities in Indonesia and developing countries to optimize public e-procurement systems.

Influence of Contract Management on Purchasing Consortia at County Referral Hospitals in the Coast Region, Kenya

The Purchasing consortium has been used to describe a form of cooperation in a diversified view to pool resources and manage supply risk. Depending on the anticipated advantages, the function of a purchasing group might be expanded more or less. The objective of the study was to determine the influence of contract management on purchasing consortium. The study was done in the County Referral Hospital in the Coast Region, Kenya. Theoretically, the study was anchored on competency theory, MacNeil Relational Theory. The study used the descriptive research design in undertaking this study. The study population comprised of 212 officials drawn from across the county referral hospitals in the coastal region of Kenya. The stratified random sampling technique resulted into having a total sample size of 139 units of analysis. Data was collected by use of questionnaires, analyzed, and presented scientifically in tables and graphs. The study findings revealed that Contract Management has a significant positive on the purchasing consortium. The study recommends that government and regulatory authorities implement policies and incentives to encourage healthcare organizations to adopt a portfolio approach to procurement. Given the significant financial and operational implications of purchasing consortiums, robust regulatory mechanisms are essential to safeguard against corruption, fraud, and collusion. Regulators should establish clear guidelines, standards, and monitoring mechanisms to govern consortium formation, operation, and performance evaluation. The study also recommends that government and regulatory bodies leverage technology and data analytics to enhance procurement efficiency and effectiveness in the healthcare sector. Furthermore, the study recommends that hospital management adopt a strategic approach to contract management that aligns with their organizational objectives and resource constraints. While the correlation analysis revealed a weak relationship between contract management and consortium participation, it is imperative for hospitals to prioritize effective contract management practices to mitigate risks and maximize value from procurement activities.

The Effect Of Budget Requirements And Management On The Performance Of Goods And Services Procurement System

This research, therefore, has been done to investigate the influence of budget requirements and management on procurement for goods and service performance in the Indonesian system. In this study, the focus will be on how the organizational needs are met and how effective the management of budget resources is in the procurement system. Despite the improvement made on regulations, challenges remain on compliance in relation to the needs of procurement and budgetary constraints. This research applies a document analysis and literature review to qualitative approach the assessment of these factors. Findings from this study show the importance of the need for the precise identification of need, stakeholder involvement, and strong cost control mechanisms. Overcoming these challenges can significantly enhance procurement efficiency and effectiveness within organizations.

Assessing the Effect of Technological Integration on Procurement Efficiency of Zamtel, Lusaka, Zambia.

Assessing the Effect of Technological Integration on Procurement Efficiency of Zamtel, Lusaka, Zambia.

Hybrid procurement model for the construction of library literature and information resource procurement

To improve the efficiency of intelligent procurement of library literature and intelligence resources, the study conducts the design of literature and intelligence resources procurement model. The procurement model is constructed by using the support vector machine, and the optimal parameters of the support vector machine are obtained by using the genetic algorithm. The experimental results demonstrated that the mean square error of the proposed model was only 0.03, which was 40 % lower compared with the procurement models based on other optimization algorithms. The average accuracy of the proposed model was as high as 95.18 % and the prediction accuracy was 95.78 % compared to other methods. The accuracy was improved by 15.11 %, 24.57 % and 19.67 % respectively compared to other models. The results show that using genetic algorithm to optimize support vector machine can effectively improve the prediction speed and prediction efficiency of the model. The proposed hybrid procurement model based on genetic algorithm and support vector machine can effectively meet the needs of library literature and intelligence resources procurement construction. The model has positive application significance in library literature and intelligence resources procurement.

Revolutionizing procurement processes in LNG operations: A synthesis of agile supply chain management using credit card facilities

Revolutionizing procurement processes in LNG operations is essential for ensuring efficient and cost-effective supply chain management. This paper presents a synthesis of agile supply chain management (SCM) principles using credit card facilities to streamline procurement processes in LNG operations. The integration of credit card facilities offers a flexible and efficient alternative to traditional procurement methods, enabling LNG companies to adapt quickly to changing market conditions and customer demands. The paper begins by discussing the challenges faced by LNG operations in traditional procurement processes, including lengthy approval processes, limited supplier options, and lack of transparency. It then introduces the concept of agile SCM and its principles, highlighting its potential to address these challenges and improve procurement efficiency. The synthesis of agile SCM principles with credit card facilities is explored in detail, focusing on how this approach can transform procurement processes in LNG operations. By utilizing credit card facilities, LNG companies can simplify the procurement process, reduce paperwork, and improve transaction speed. This approach also offers greater flexibility in supplier selection, allowing companies to quickly onboard new suppliers and respond to market changes. The paper also discusses the benefits of this approach, including cost savings, improved supplier relationships, and enhanced operational efficiency. Case studies and examples are provided to illustrate the application of agile SCM using credit card facilities in LNG operations. In conclusion, the synthesis of agile SCM principles with credit card facilities offers a transformative approach to procurement in LNG operations. By adopting this approach, LNG companies can enhance their competitive advantage, improve procurement efficiency, and drive overall operational excellence in the LNG industry. Keywords: Revolutionizing, Procurement Processes, LNG Operations, Credit Cards Facilities, Agile Supply Chain Management.

Influence of Geopolitical Events on Procurement Strategies and Supply Chain Dynamics in Multinational Corporations

Purpose: The aim of the study was to examine the influence of geopolitical events on procurement strategies and supply chain dynamics in multinational corporations Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study found that geopolitical events exert a profound influence on procurement strategies and supply chain dynamics within multinational corporations (MNCs), compelling them to adapt swiftly to global uncertainties. The study underscored that events such as trade conflicts, sanctions, and political instability disrupt established supply chains, necessitating strategic adjustments in sourcing, supplier relationships, and operational practices. MNCs respond by diversifying sourcing locations, enhancing supply chain transparency, and integrating robust risk management frameworks to mitigate geopolitical risks effectively. Unique Contribution to Theory, Practice and Policy: Institutional Theory, Resource Dependence Theory & Transaction Cost Economics (TCE) may be used to anchor future studies on influence of geopolitical events on procurement strategies and supply chain dynamics in multinational corporations. Encourage MNCs to adopt agile procurement strategies that prioritize flexibility and responsiveness to geopolitical disruptions. This includes establishing multi-sourcing strategies, leveraging local suppliers, and implementing digital platforms for real-time risk monitoring and decision-making. Strengthen supplier relationship management practices to build resilient supply networks. Foster transparent communication and collaboration with suppliers to co-develop contingency plans and mitigate supply chain risks arising from geopolitical events. Advocate for transparent and stable trade policies that reduce uncertainty and facilitate global supply chain operations. Engage in constructive dialogues with policymakers to address trade barriers, tariffs, and regulatory inconsistencies that hinder cross-border trade and procurement efficiency.

Role of Emerging Technologies in Improving Procurement Efficiency and Effectiveness in Ghana

Purpose: The aim of the study was to examine the role of emerging technologies in improving procurement efficiency and effectiveness in Ghana. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The role of emerging technologies in improving procurement efficiency and effectiveness in Ghana has been transformative, driving significant advancements in the procurement landscape. The adoption of technologies such as blockchain, artificial intelligence (AI), Internet of Things (IoT), and big data analytics has streamlined procurement processes, enhanced transparency, and fostered better decision-making. Emerging technologies have automated repetitive and time-consuming tasks, reducing manual errors and speeding up procurement cycles. AI and machine learning algorithms have enabled predictive analytics, allowing procurement professionals to forecast demand more accurately, optimize inventory levels, and negotiate better with suppliers based on data-driven insights. Unique Contribution to Theory, Practice and Policy: Technology Acceptance Model, Resource-Based View (RBV) & Transaction Cost Economics (TCE) may be used to anchor future studies on role of emerging technologies in improving procurement efficiency and effectiveness in Ghana. Organizations can benefit significantly by investing in training and development programs tailored to equip procurement professionals with the skills needed to leverage emerging technologies effectively. Hands-on workshops, certification courses, and mentorship programs focused on technology integration should be prioritized to bridge existing skill gaps and build a workforce capable of implementing and managing these advanced procurement tools. Governments and regulatory bodies play a pivotal role in creating an enabling environment for the widespread adoption of emerging technologies in procurement. Developing flexible regulatory frameworks that accommodate the unique characteristics and risks associated with these technologies, such as data privacy and cybersecurity concerns, is essential. Policymakers should also consider incentives such as tax credits, grants, and subsidies to encourage organizations to invest in technology upgrades and innovations that enhance procurement efficiency and effectiveness.

Impact of Public Procurement Rules on the Efficient Procurement Processes Mediated by Technology Integration Health Sector: A Case of Punjab

This study explores the impact of public procurement rules on the efficiency of procurement processes in the health sector of Punjab, focusing on the mediating role of technology integration. In the context of public sector procurement, stringent rules and regulations are designed to ensure transparency, accountability, and fair competition. However, these rules can also introduce complexity and delays. This research examines how the adoption of advanced technology solutions can streamline procurement processes and mitigate the challenges posed by regulatory frameworks. Using a mixed-methods approach, data were collected through surveys and interviews with key stakeholders in the health sector, including procurement officers, suppliers, and policy makers. The findings indicate that while public procurement rules impose necessary checks and balances, their rigid application can impede procurement efficiency. The integration of technology, such as e-procurement systems, has shown significant potential in enhancing process efficiency by automating workflows, reducing manual errors, and improving transparency. The study concludes that technology integration acts as a crucial enabler in balancing the dual objectives of regulatory compliance and operational efficiency in the health sector's procurement processes. Recommendations for policy adjustments and further technology adoption are provided to optimize procurement practices and improve health service delivery in Punjab.

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