Private Sector Procurement Research Articles

Applicability of Emerging Global Procurement Trends for Public Procurement under New Normal Condition in Sri Lanka

This research aims to find applicable emerging procurement trends in private sector for public procurement to bridge the efficiency and effectiveness gap between two sectors through this study. The study was conducted using unobtrusive research technique where it is a part of qualitative methods. Initially, study was focused to understand differences between private and public sector procurements where challenges of public procurements were derived through literature. Then researcher derived emerging procurement trends such as adopting to automated procurement, big data management, collaboration and cooperation, thinking suppliers beyond the price and visibility in supply chains as indicators under independent variable (emerging global procurement trends) of the study while deriving existing challenges in public procurement sector such as limited planning and forecasting, selection of vendors, maintain confidentiality, publication and responses, middlemen operations and poor performances of suppliers as indicators for dependent variable (overcome challenges in public procurement). Then validated the relationships among emerging procurement trends and challenges by referring to the existing knowledge in the study span through literature survey. Finally, researchers found and explored those existing challenges in public procurement can be overcome by adopting to derived emerging global procurement trends in the public sector. Keywords: Challenges in public procurement, Global procurement trends, Private sector procurement, Public sector procurement.

Public sector procurement: A private sector procurement perspective for improved service delivery

Background: Service delivery is the core business of any government around the world, especially in developing economies. The government uses various public procurement legislation that govern how public services are procured. The current procurement legislation to acquire goods, works and services for the public at large are said to be ineffective and inefficient, hindering the accelerated provision of public services.Aim: This article aimed to ascertain the degree to which public sector procurement processes can be modelled to that of the private sector to improve service delivery.Setting: Several studies have revealed a stagnating nature of service delivery in government entities when it comes to the methods used to procure public services in South Africa. The private sector also does procurement successfully; however, it is slightly different as it is not governed by rigid public procurement legislation causing unnecessary red tapes. The red tapes that are sometimes impeding the accelerated service delivery are a major cause for concern if the government was to improve service delivery at a faster and unhindered pace.Methods: The research was qualitative in nature and used unobtrusive research methods focusing on a literature review technique. The research entailed a robust examination of the existing literature and trends analysis in the field of public procurement and private sector procurement.Results: The article revealed that there are several shortcomings in the form of red tapes that the public sector procurement is currently experiencing, which can be mitigated by adopting some of the private sector operational processes. Of course, this might require a total overhaul of the current public procurement processes including some legislation in an attempt to boost service delivery. Such red tapes include inflexibility of government procurement processes to allow for innovations, long-term supplier relationships and effective communication on future government plans. As such, some of these red tapes have a huge impact on improving service delivery, especially if fraud and corruption are involved; some processes are counterproductive and they end up allowing inexperienced suppliers to be chosen who fail to deliver.Conclusion: Public procurement process in South Africa urgently needs an overhaul to adopt some of the best practices used in private sector procurement operations to improve service delivery. This is because most public resources do not yield value for money because of rigid and stifling public procurement processes.

Optimizing Infrastructure Delivery by Public Sector Through Limiting Private Sector Involvement

Objective: An attempt has been made by the author(s) in optimizing the infrastructure delivery by public sector through a rigorous series of questionnaire templates and interviews, in India. Statistical Analysis: Likert scale with five (5) points is used to record and tabulate the data. SPSS is used for statistical analysis of the recorded data and Factor analysis is applied to minimize variables. The experimental result is validated using hypothesis test. Findings: Public sector has various limitations in executing infrastructure projects, from lack of technological skills to financial constraints.The private sector, on the other hand, has been able to execute projects on timely basis without compromising the technology, but at a much higher cost. Though the private sector procurement methods have better efficiency in technology utilization, public sector procurement has greater impact in socio-economic development of the society. Improvements:Further points can be put forwarded such as giving more weightage to citizen’s well-being rather than taking GDP as a decision criterion for a country’s development.

An Analysis of Various Types of Supply Chain Management Systems: Case of Global Public Sector versus Private Sector Procurement

Public institutions are subject to huge range of legislative restrictions, controlled by the legislative, executive and judicial authorities and subject to criticism by the public at large as compared to private sector procurement processes which are led by profit motives (Fourie, 2009). In both public and private sector procurement, the goods, services and or works have to be acquired, which is the most similarity between these two sectors. In the final analysis, Oughton (2007) alluded to the fact that, it is how well these concepts work that truly determine their worth; it is clear that public and private sector supply chains truly are "two sides of the same coin" and that many private sector best practices can be used in the public sector with great success and with little or no modification; thereby fostering the much needed partnership between these two sectors. A general concern among public sector procurement processes is a low level of trust to the suppliers in that the best price offer ultimately is selected or given high weight like in the South African 80/20 and 90/10 preferential point system, however there is a contrast, in that the private sector often considers performance equally or even more important than price so the 80/20 and 90/10 principle wouldn’t work in private sector procurement. Private sector procurement managers are said to be more interested in the quality of performance than costs; therefore the public sector procurement officials can learn more of these good practices from the private sector.

Factors affecting the choice of construction project delivery in developing oil and gas economies

ABSTRACTConstruction academics and practitioners often disagree on which set of factors should take precedence over another and the basis for their inclusion in selecting a project delivery method. This disagreement exacerbates the probability of project failure, which could be detrimental to developing economies. Despite significant cost overruns and these economies being the largest contributors towards global energy sector growth, there is limited knowledge on appropriate factors to be used for selecting project delivery methods in developing oil and gas nations. An evaluation undertaken in Trinidad reveals there are no significant differences in the mean expressed by 133 professionals in relation to 48 variables obtained from the literature on project delivery selection. However, there were several differences in the respondents' views, based on their roles as client, contractor, or consultant. Using principal component analysis, all 48 variables were reduced to 11 factors, which were confirmed using split sample verification. These 11 factors accounted for 67% of the total variance of the solution. The top six factors are: Owners’ Control Over the Design; Project Type and Client Familiarity; Finance and Payment Method; Project Scale in terms of Scope and Cost; Contract and Risk; and Time Constraints. Although existing selection approaches do not emphasize the inextricable link between contract and the selection of project delivery methods, this link which is evident in practice is reinforced by the factors provided. How these factors are different and how these differences facilitate efficient project execution between public and private sector procurement is presented in this article.

Public procurement and the BLS: operationalizing occupational duties

Purpose – Procurement is a specific, yet dynamic area of work and study that is recognized as an occupation by the US Bureau of Labor Statistics (BLS). However, there is growing literature that substantiates differences in theory and practice, between procurement practitioners in the private and public sectors. The purpose of this paper is to validate the procurement occupational duties identified by the BLS with actual job activities performed and managed by public sector practitioners. Design/methodology/approach – The paper is based on a survey of public sector practitioners to obtain information with regards to occupational duties and job activities in public procurement, as compared to a BLS proxy for procurement. Findings – Public procurement practitioners complete the occupational duties identified by BLS, yet there is one occupational duty in public procurement that is absent from the BLS description for procurement. Practical implications – Empirical data and analysis identifies the potential for public procurement to be considered its own occupation separate from private sector procurement, providing a foundation for development, management, and professionalization of the field. Originality/value – The public procurement practitioners who completed the survey have a high degree of professional orientation based on certifications held and professional association membership, a foundation for generating applicatory results for studying the actual occupational duties in procurement. The specialized job activities performed and managed in perhaps the fastest growing occupation within public sector management are catalogued in this study.

Supplier Diversity: a New Phenomenon in Private Sector Procurement in South Africa

This article represents a South African contribution to the policy-oriented focus of much international small business scholarship. It examines an emerging new dimension in South African small enterprise development policy debates—the question of supplier diversity in private sector procurement. Against the backdrop of a review and analysis of the international origins and trends in supplier diversity in particular from the established US and UK experiences, it unpacks the developing South African record on supplier diversity and local challenges. Attention is drawn to the important position of the South African Supplier Diversity Council. National government support should be given to emerging private sector-led initiatives for developing supplier diversity in order to forge a partnership to achieve the goal of a more economically robust as well as inclusive small enterprise economy in South Africa.

Public versus private sector procurement ethics and strategy: what each sector can learn from the other

The government purchasing market constitutes the largest business sector in the world. While marketers would benefit from a deep understanding of both sectors, how the two sectors differ in terms of ethics and strategy largely remains unknown. The purpose of this research, therefore, is to explore differences between the for-profit and not-for-profit sectors on two critical aspects of business-to-business procurement: ethics and strategy. Using survey data from a sample of 328 procurement professionals in the for-profit and not-for-profit sectors, key differences are explored. Findings suggest that buyers in the for-profit sector are more likely to behave opportunistically. Conversely, the buyers’ leaders in the not-for-profit sector behave more opportunistically and are more willing to turn a blind eye to their subordinate buyers’ opportunistic behaviors. In addition, key differences in procurement strategy are unveiled suggesting that not-for-profit procurement practices have some room for improvement. Based on the findings, theoretical and managerial implications are drawn, and a future research agenda is proposed.

Public procurement design: Lessons from the private sector

Public procurement regulations put constraints on the contracts and award mechanisms that public procurement agencies can use. These constraints are not present in the private sector, and recent studies suggest that the added flexibility in private sector procurement offers efficiency advantages. This paper offers a short progress report of these recent studies, and argues for the need to enhance the tools that are currently at the disposal of public sector procurement offices.

Current Research On Reverse Auctions: Part I -Understanding The Nature Of Reverse Auctions And The Price And Process Savings Associated With Competitive Bidding

This article serves as the first part of a two-part series that will provide an overview of the reverse auction concept, building on the best research in the field of supply chain management. In this instalment, we examine the growth of reverse auctions in both private and public sector procurement. We then provide a differentiation between the more readily understood forward auction concept and the emerging practice of reverse auctioning. We then examine the two -sides of the reverse auction savings equation, looking at the “first order” savings to be derived from the use of competitive bidding to secure lower purchase prices, as well as the “second order” savings that can be achieved through making the procurement process more effic ient.

Public Versus Private Sector Procurement Ethics and Strategy: What Each Sector can Learn from the Other

The government purchasing market constitutes the largest business sector in the world. While marketers would benefit from a deep understanding of both sectors, how the two sectors differ in terms of ethics and strategy largely remains unknown. The purpose of this research, therefore, is to explore differences between the for-profit and not-for-profit sectors on two critical aspects of business-to-business procurement: ethics and strategy. Using survey data from a sample of 328 procurement professionals in the for-profit and not-for-profit sectors, key differences are explored. Findings suggest that buyers in the for-profit sector are more likely to behave opportunistically. Conversely, the buyers’ leaders in the not-for-profit sector behave more opportunistically and are more willing to turn a blind eye to their subordinate buyers’ opportunistic behaviors. In addition, key differences in procurement strategy are unveiled suggesting that not-for-profit procurement practices have some room for improvement. Based on the findings, theoretical and managerial implications are drawn, and a future research agenda is proposed.

Is local authority procurement ‘lean’? An exploration to determine if ‘lean’ can provide a useful explanation of practice

This article makes a contribution to the research debate examining relationships between public and private sector procurement practice by exploring the influence of ‘lean’ upon procurement practices in English local authorities. A survey found that whilst some characteristics, such as a reducing supply base, resembled those of lean thinking, they could also be associated with a partnership approach. Other evidence highlighted gaps between practice and lean, leading to the conclusion that lean is not currently an influence. However, many procurement officers are aware of the concept and are willing to embrace the idea. There is a need to monitor and examine progress further.

Public sector purchasing of health services: A comparison with private sector purchasing

Recent research has highlighted the existence of important differences between public and private sector procurement practices. Drawing on established transactional and relational conceptual frameworks, this paper examines whether the differing environments confronting public and private sector organisations affects procurement practices. By focusing solely on occupational health services as an example of a complex business service, the research allows the influence of environmental factors, notably policy drivers, to be considered across both public and private sector settings while service specific factors remain largely constant. Utilising a combination of questionnaires and in-depth interviews the research suggests that policy drivers had a major bearing on procurement practices adopted in the public sector, resulting in a very different pattern of engagement with service providers from that prevailing in the private sector. Specifically whereas private sector organisations utilised a range of approaches, which can broadly be classified as relational in nature, public sector organisations almost exclusively relied on transactional-based approaches. The nature of these services suggests that relational based procurement constitutes the optimal approach to the acquisition of such services. However, for public sector organisations the perceived restrictions imposed by public policy on procurement practices resulted in the adoption of an approach which can be viewed as resulting in sub-optimal outcomes.

Is There a Trade and Defense Perimeter? The Regional Impacts of Trade and Defense Spending in the United States, 1978‐1986

ABSTRACTUsing an expanded shift share technique to impute international trade‐related industrial job change, the extent to which structural changes in trade and defense spending appear to explain state economic performance differentials is explored. The findings show there is limited support for the “trade perimeter” argument, but strong support for the hypothesized relationship between military procurement spending and state trade performance. To the extent that defense commitments, especially to private sector procurement and R & D, have operated as an informal industrial policy, particularly by guaranteeing strong domestic sales, they have enabled a significant number of states peripheral to the traditional industrial heartland to build a strong international trade posture. The conclusion offers observations on the economic development implications of these findings.