Procurement Model Research Articles

Study on the Optimization of Logistics Procurement Mode in the Background of Supply Chain Internet of Things

In the traditional logistics procurement model, there are problems such as incomplete information acquisition and information lag. The information between suppliers and purchasers cannot be exchanged in a timely manner, which leads to certain risks and increased costs when both parties formulate strategies. The application of Internet of Things (IoT) technology in supply chain management, through real-time data collection, intelligent processing, and optimized decision-making, significantly enhances the transparency, efficiency, and response speed of the supply chain. It is conducive to promoting internal management innovation and supplier collaborative innovation, reducing the cost of information acquisition and communication with suppliers during the procurement process, and thereby promoting the improvement of total factor productivity. This paper analyzes the problems existing in the logistics procurement model in the traditional environment, compares and analyzes the role and innovation of the procurement model under the background of supply chain IoT, and finally compares and demonstrates the logistics service levels of two companies before and after the optimization of the procurement model under the background of supply chain IoT. The optimization of the procurement model under the background of supply chain IoT can effectively improve the service quality of enterprises, enhance the overall management level, assist enterprises in sharing risks, effectively reduce the inventory costs of enterprises, and effectively strengthen the integration effect of logistics information. Therefore, the research on the optimization of the procurement model under the background of supply chain IoT is very necessary.

The Case for Public-Private Partnerships in South Africa: Is South Africa Ready?

South Africa’s National Infrastructure Plan 2050 indicates an intention to augment the financial capacity and technical expertise of South Africa’s delivery agencies by engaging in strategic partnerships with the private sector through public-private partnerships (PPPs). The objective of this paper is to identify, measure and critically consider the critical success factors in the South African context necessary for the effective delivery of PPPs. Empirical data collection involved a triangulated case study analysis, a survey to measure contextual factors and in-depth interviews with local infrastructure specialists to review causes and consider solutions. Key findings include a need for PPP capacity building and addressing the lack of political will within the public sector while shifting towards a programmatic procurement and delivery model for infrastructure projects.

EMPIRICAL INSIGHTS INTO CENTRALIZED PUBLIC PROCUREMENT: A CASE STUDY

This study case analyzes the implementation of the centralized model of public procurement by the Executive Branch of the Brazilian State of Amapa. Therefore, there is following research question: did the implementation of the centralized model result in improvements in the public procurement process in Amapa? In addition, the adopted methodology is based on a case study, as well as on the collection of information in official systems, added bibliographical and documentary research, questionnaires and semi-structured interviews. As a result, it was found that, from a general perspective, the centralized model works well in the State, however adjustments and improvements are necessary in areas of the centralized model that still require investments, such as planning, procedural agility and articulation with some bodies and entities of State. The findings provide insights into centralized public purchases in a Brazilian state and allow rise up hypothesis about similar experiences in another places (countries, states, municipalities). The compreension about Purchase Centrals it is a relevant tool into test how governments establishment suas procurement strategies and how to maximize the public spend getting economy and celerity.

Supply Chain Management for the Engineering Procurement and Construction (EPC) Model: A Review and Bibliometric Analysis

China’s “Going Out” strategy and the “Belt and Road” initiative have significantly propelled the expansion of overseas contractual engagements, with a pronounced impact in the Engineering, Procurement, and Construction (EPC) sector. EPC contracting is increasingly recognized for its superior resource allocation and integration efficiency. Within the EPC framework, procurement is pivotal, exerting a direct influence on project cost, schedule, and quality parameters. The biblio-metric analysis of this paper reveals the research trend of EPC projects in the past decade, especially in supply chain integration, procurement management, and stakeholder management. This indicates an increasing interest in efficient project management and supply chain optimization in international engineering EPC projects. Although the application of supply chain integration in the manufacturing industry has been a successful experience, its practical application in construction and EPC projects is still insufficient. Integration strategies mentioned in the literature, such as achieving supply chain transparency through digital platforms, reducing operating costs, and optimizing delivery time, are directions that need to be further explored in this field. Effective supply chain integration and increased maturity of procurement management in EPC projects are still less involved areas. In addition, there is also a lack of research on how to manage high-risk and unpredictable risks in large international engineering projects. This article suggests that future research should focus on developing flexible supply chain management tools and practices to adapt to a project-oriented supply chain environment.

Influence of Electronic Procurement Processes on Procurement Performance of Uasin Gishu County Government, Kenya

This study aimed to investigate the influence of electronic procurement processes (e-procurement) on procurement performance in Uasin Gishu County, Kenya. The growing importance of web-based procurement models and information communication technology (ICT) in enhancing supply chain value generation is the backdrop for this research. Although prior studies have indicated the advantages of e-procurement in terms of reduced processing time, cost savings, enhanced data accuracy, and increased efficiency, several gaps and limitations exist in the existing literature. This study addresses these gaps by providing a comprehensive exploration of the impact of various e-procurement dimensions on procurement performance, with a specific focus on a devolved government entity in Kenya. This examination evaluated the influence electronic on performance of Uasin Gishu County, Kenya. The study sought to establish the effect of electronic sourcing and ordering on procurement performance within the county government. The study drew on theoretical frameworks, including the Disruptive Innovation Theory and the Diffusion of Innovation Theory, to determine extent to which electronic procurement influence the performance of procurement unit. A concurrent parallel mixed design was employed to facilitate an in-depth analysis of the research variables. The target population comprises of supply chain officers, user department heads, and accounting officers in Uasin Gishu County Government, totaling 96 respondents. A census sampling method was employed due to the relatively small population size. Data was collected through questionnaires and analyzed quantitatively. The analysis included descriptive statistics such as frequency distributions, means, and standard deviations. The study findings were presented using tables and figures for clarity and easy interpretation. The study concluded that integrating electronic payment into Uasin Gishu County’s e-procurement framework enhances efficiency by speeding up transactions and reducing manual effort and electronic sourcing strengthens supplier engagement, ensures clear communication of requirements, and enables effective performance tracking. The study recommended that adopting electronic invoicing accelerated payments, reduce errors, and improve accuracy. Additionally, investing in an integrated e-procurement system will facilitate seamless communication among departments involved in procurement.

Robust optimization model for traceable procurement of construction materials considering contract claims

In claim contracts, project owners and contractors set negotiated prices and exemption amounts for price adjustments to deal with the uncertainty of material prices, which is often overlooked in the optimization of procurement strategies. Therefore, considering contract claims, this paper constructs an optimization model for contractors’ traceable procurement strategies to address the multi-stage, multi-source procurement issue. A robust optimization model is used to consider the uncertainty of procurement prices, and the robust parameter is set to flexibly control the robustness of the solutions. The results indicate that contractors with different risk attitudes have the same preference for the exemption amount, but they exhibit varying sensitivities to the exemption amount and also have different preferences regarding the negotiated price. Furthermore, the study reveals that negotiated price exerts an anchoring effect on the procurement strategies of contractors.

Approach to Weighting the Success Criteria of Toll Road Project of Government Cooperation with Business Entities Procurement Model

In providing funding for toll road development projects, many developing countries are im-plementing PPP pro-curement schemes including Indonesia. This funding scheme is believed to be an innovative procurement process model and has good prospects for the future of the construc-tion industry in the world. However, in its implementation, the Indonesian government is currently faced with various problems that have the potential to have a negative impact on the management and development of toll roads in Indo-nesia. Therefore, the main objective of this research is to develop a method of evaluating the success of PPP-themed toll road projects and determining the current and future strategy of PPP-themed toll road development projects. Methodology This research, using an exploratory sequential mixed methods approach, involves four stages of research. Through a Systematic Literature Review (SLR) of reputable scientific journals from various countries, a questionnaire survey was developed. The survey results were analyzed using multivariate statistical methods with the help of Par-tial Least square analysis software (PLS-SEM), analytical hierarchy process (AHP) and Relative Importance Index (RII) methods. The results of this research found 20 critical success indicators and four dimensions of project success. This study produces a new way to assess the success of PPP-themed toll road projects that is very important and can inspire the government in making policies, legislation and regulations as well as innovative strategies in develop-ing PPP-themed toll roads.

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.

School canteens healthier for children and the planet in the Valencian Region

Abstract Issue SchoolFood4Change (SF4C), an EU Horizon 2020 project in 12 EU countries, aims at making school meals healthier for children and the planet through innovative and sustainable food procurement, promotion of planetary health diets and cooking, and a Whole School Food Approach. In the Valencian Region two subsequent market dialogues (MDs) were organised to explore a new school food procurement and feeding model. Description In our context, most children have lunch at school daily. SF4C sees schools as catalysts for a systemic change. Two intersectoral MDs were conducted with the participation of public authorities, food procurers, cooks and schools. The first one MD1, 23 attendees, used a gamification dynamic through building blocks. MD2, 58 participants, used a World Cafe methodology to analyse nutritional, environmental, educational, social and economic determinants. Results MD1 highlighted the need to increase food education in the curricula, value regional products and cuisine, improve culinary training and reduce food waste. It suggested establishing percentages of local and organic products in tenders and improving communication between the public administration and the educational community. MD2 emphasised the objective of promoting the Mediterranean diet and sustainability in canteens. To that end, participants identified the importance of establishing requirements in public tenders, annual planning of procurement, optimising logistics and integrating the canteen into the educational project. This would enhance predictability, economic sustainability, and social support for a new innovative model. Lessons Structured interaction between stakeholders was essential to devise innovative and sustainable solutions. The creation and dynamization of intersectoral working groups is an effective public health strategy to build networks for the co-creation of viable alternatives to achieve a healthier and more environmentally sustainable school feeding. Key messages • Structured interaction in intersectoral working groups is an effective public health strategy for the co-creation of viable alternatives to make school feeding healthier for children and the planet. • Tailored innovative and sustainable solutions entail a framework for structured discussions, specific context analysis, negotiations between stakeholders and locally adaptation of good practices.

Re-thinking the concept of embedded procurement: Insights from the lower Paleolithic of the Levant

Binford’s concept of embedded procurement, proposed over half a century ago, which suggests that lithic procurement was typically integrated with other subsistence activities, has become a cornerstone of raw material studies, and continues to dominate interpretations by many archeologists studying Lower and Middle Paleolithic flint sourcing. However, evidence from Lower Paleolithic Acheulo-Yabrudian Qesem Cave, and the Lower and Middle Paleolithic Dishon and Achbara flint extraction and reduction complexes, in Israel, suggests that this view warrants reconsideration. At Qesem Cave, significant proportions of non-local materials, particularly within specific typo-technological categories, indicate a selective approach to the procurement and exploitation of different flint types, including evidence of long-distant procurement. At Dishon and Achbara, multiple flint extraction and reduction tailing piles have been identified, featuring rejected handaxes and Levallois cores, and the geochemical composition similarity between this flint and handaxes from the Acheulian sites of at Ma’ayan Barukh and Gesher Benot Ya’aqov (GBY), both located ∼ 20 km from the Dishon complex, suggesting the existence of task-specific forays, dedicated to the organized extraction of flint. Based on these finds, we propose that the predominance of the embedded procurement model should be reassessed, as direct procurement strategies were already in use during the Lower Paleolithic of the Levant. Moreover, drawing on archaeological and ethnographic data, we argue that cultural, social, cosmological, and ontological factors also influenced lithic materials procurement practices among Lower Paleolithic populations.

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.

Community Choice Electricity Aggregation and Solar Adoption: Evidence From Illinois

We explore whether municipalities voting on the community choice aggregation (CCA) model of electricity procurement relates to the adoption of small-scale distributed solar in the US state of Illinois. Municipalities that held a referendum for CCA were more likely to have small-scale solar installations compared to those that did not. Among municipalities with solar installations, those that held CCA referendums have lower per capita solar power generation than those without CCA referendums. The impacts of CCA referendums on small-scale solar adoption are mixed and should be combined with other strategies to promote broader solar adoption in the U.S. energy market.

Uptake of biosimilars in China: a retrospective analysis of the case of trastuzumab from 2018 to 2023

BackgroundThe Chinese biosimilar industry has demonstrated rapid growth in recent years. Limited evidence is available about biosimilar uptake at the national level. This study aimed to assess biosimilar uptake in the case of trastuzumab and to explore potential factors influencing the biosimilar penetration at national and provincial levels.MethodsThis study employed an interrupted time series analysis to assess the level and trend changes of national trastuzumab originator consumption and the overall trastuzumab consumption after the price reduction of the originator and the introduction of the first biosimilar using the China Hospital Pharmacy Audit procurement data from March 2018 to February 2023. A latent class trajectory model (LCTM) was also adopted to estimate the biosimilar penetration across 30 provincial-level administrative divisions (PLADs). Based on the LCTM grouping results, provincial characteristics were analyzed.ResultsAfter rapid growth, the penetration of biosimilars demonstrated a moderate ascending trend at the national level, reaching 27% in February 2023. Following the introduction of the first biosimilar in July 2021, the consumption of the originator decreased by 0.5% per month (P = 0.008), and the growth rate of overall trastuzumab consumption decreased by 1.1% per month (P = 0.014). LCTM fit the best when the number of trajectory classes was two, dividing 30 PLADs into a group demonstrating a faster increase in biosimilar penetration and the other with a slower increase. The PLADs in the fast-increasing group had a higher proportion of the population covered by the national basic health insurance, a lower proportion of the urban population, a lower proportion of the population covered by the urban employee health insurance program, a lower gross domestic product per capita, a lower total health expenditure per capita, and a lower out-of-pocket expenditure.ConclusionsThe uptake of trastuzumab biosimilars in China was lower compared with major European countries. The introduction of trastuzumab biosimilars presented a substitutional effect. Perceptions of physicians and patients, the medicines procurement model, competition from other biologics, and health insurance payment methods may influence biosimilar uptake. Enhancing a comprehensive understanding of biosimilars among physicians and patients, including biologics with biosimilars in the national pooled procurement, and implementing provider payment reforms could foster biosimilar penetration.

Improving antibiotic prescribing – Recommendations for funding and pricing policies to enhance use of point-of-care tests

IntroductionDiagnostics can contribute to the improved quality of antibiotic prescribing. However, there is potential to enhance the use of point-of-care tests (POCTs) in general practice. This paper presents fit-for-purpose policy recommendations related to funding and pricing for POCTs applied for community-acquired acute respiratory tract infections (CA-ARTIs). MethodsThe development of the recommendations was informed by an analysis of the current status of funding and pricing policy frameworks for CA-ARTI POCTs in European countries, and an identification of barriers and facilitators for their uptake. Draft recommendations were developed and subsequently revised based on written and verbal feedback from meetings with experts. ResultsThe proposal includes four recommendations for policy interventions related to funding and three recommendations regarding pricing policies. Two of the funding policy-related recommendations concern physicians’ remuneration, and two relate to product-specific reimbursement (public coverage) of the CA-ARTI POCTs. The pricing-related recommendations include a proposal to explore the introduction of price regulation, to pilot subscription-fee procurement models and to enhance more strategic approaches in public procurement of CA-ARTI POCTs. ConclusionsOptimised pricing and funding policies could make a difference in enhancing uptake of CA-ARTI POCTs. It is crucial for the successful implementation of policies to consider country settings. Additionally, supportive policy action is recommended, including the systematic use of health technology assessment, stakeholder communication, and monitoring and evaluation.

Disability inclusion studies in the construction industry: a mixed review approach

People with disabilities are an important part of our society and are acknowledged as a wonderful piece of human variety. However, their involvement in the building business is mostly unknown. This report aims to give a critical assessment of disability inclusion studies in the construction industry and identify areas for further research. The Scopus search engine aided in the literature review search, where 253 publications were discovered using relevant keywords. After carefully reviewing the titles, abstracts, keywords, and full texts of the publications, a total of 55 relevant publications were selected. A scientometric study was undertaken to chart the landscape of disability inclusion studies within the construction industry and identify primary areas of research focus within this domain. The top five countries that are actively researching disability in the construction industry include the UK, the United States, Brazil, Canada, and Australia. The emerging areas in disability inclusion research in the construction industry focused on social value, social innovation, social procurement, employment, disability management, policies, discrimination, and disability management maturity model. The study highlighted the essential knowledge areas crucial for enhancing the integration of persons with disabilities in the construction sector to industry practitioners and other stakeholders.

A two-stage emergency supplies procurement model based on prospect multi-attribute three-way decision

A two-stage emergency supplies procurement model based on prospect multi-attribute three-way decision

An Investigation into the Models for Financing Renewable Energy Production in Low-Income Settlements in Gauteng, South Africa: A Review

South Africa faces a lack of reliable, modern electricity, essential for economic and social development. Many communities in Gauteng, particularly rural, informal settlements, are not connected to the national grid, leaving 39 percent of the province's residents in darkness and relying on paraffin and gas to survive the cold winters. In addition, these two components increase the number of dead fires in unofficial regulation and the price of electricity camps, increasing the load on the poor. In this study, we surveyed existing literature on the affordable funding model of renewable energy sources, collected primary data in structured industry interviews and stakeholders. This research focused on this survey, focusing on domestic recurring models and analysing the appropriate financing model and financial exhibition source project funding, green finance, public, private partnership, Government subsidies and private investors also instruct foreign investors. Financial procurement model is mixed. In this study, we have developed a framework that allows representatives to link to the outlook of financiers and decision -making, using a mixed methodology approach, and allows you to allow reliable and useful research results. This gap represents a significant obstacle to renewable energy financing. Furthermore, the results indicate that innovative financing channels are needed to promote renewable energy development in Gauteng and South Africa, as traditional financing methods have had little effect in stimulating renewable energy development. Furthermore, the results show that green energy investors consider renewable energy sources to be very risky, even when supported by government policies. Therefore, the study proposes a financing model that brings together funders into small financial consortia to fund local renewable energy projects using a blended financing model. Such a model would spread risk across multiple investors, thereby reducing the potential risks of investments while achieving the goals and benefiting from tax credits and other incentives for investing in renewable energy.

A multi-objective lot sizing procurement model for multi-period cold chain management including supplier and carrier selection

The rapid expansion of the cold chain market is a key supply chain trend, but its high energy consumption conflicts with low-carbon goals. To address this, the paper proposes a multi-objective lot sizing procurement (LSP) model for managing the procurement of perishable products in the cold chain. This model, constrained by limited inventory and transportation capacity, aims to optimize multi-period procurement plans and order allocation and minimize total costs and carbon emissions. The proposed multi-objective LSP model adopts a posteriori mode, which contributes to enhancing the model's applicability, especially in countries where carbon tax and trading systems are not fully developed. To enhance decision makers’ decision efficiency and preserve the diversity of the original Pareto solutions as much as possible, the K-means++ algorithm is employed to prune the original Pareto solution set, providing decision-makers with three representative solutions (cost priority, balanced, and carbon priority solutions). In addition, the paper conducts sensitivity analysis, stability experiments, and compares the multi-objective LSP model with the benchmark model (relaxed carbon emission constraints). Experiments show that the multi-objective LSP model quickly and stably provides decision-makers with lot sizing purchasing plans for numerical examples of different scales and effectively controls the total carbon footprint of the entire cold chain at a low cost.

Challenges and Strategies for Green Transformation in Logistics Procurement Business: Case Study of SF Express

This study explores the challenges and coping strategies logistics enterprises face in green transformation in procurement management operations. By analyzing the current situation of logistics enterprises, it is found that there are many problems in the traditional procurement model, such as focusing on profit and price while neglecting product quality and long-term partnership. At the same time, the cognitive level of logistics enterprises in green logistics procurement is low, and green supplier selection is influenced by price and profit. This study proposes strategies for establishing and improving green procurement management systems and policies, developing green procurement standards, and setting up evaluation mechanisms to facilitate logistics enterprises' transition towards green. Through case analyses, it is found that some enterprises have begun implementing green procurement and achieved positive results. Finally, this study emphasizes that the government has strengthened its policy support and supervision of green logistics procurement to promote logistics enterprises to make greater progress in green transformation.

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.