Procurement Choices Research Articles

BRalu Profile: the procurement strategy

Learning outcomes After completion of the case study, students will be able to understand BRalu Profile’s product range, customer base and historical developments; analyze how BRalu Profile’s procurement strategy evolved and its impact on business profitability; calculate and compare procurement costs and evaluate their role in decision-making for different suppliers; examine how market conditions (includes domestic and international dynamics) and pricing strategies influence procurement choices; assess the pros and cons of different procurement options and make informed recommendations based on supply chain principles; and identify potential procurement risks (e.g. currency exchange rates and supplier reliability) and propose strategies to mitigate them. Case overview/synopsis This case study explored the challenges faced by BRalu Profile, a prominent aluminum profile products company based in Ahmedabad, India. It focused on the critical task of supplier evaluation, selection and the complexities of maintaining relationships with existing suppliers. This case study delved into the intricate dynamics of procurement decisions within the supply chain and their direct impact on the firm’s overall performance. It also emphasized the supply chain’s susceptibility to disruptions and their consequences on company operations and supplier selection criteria. The protagonist, Dhaval Choladiya, had to navigate the complexities of cost-benefit analysis to identify the most suitable supplier, maximizing the firm’s net benefit while considering nonpricing parameters. This case study revealed the critical importance of maintaining strong supplier relationships in a competitive market and offered insights into the complexities of sourcing. Complexity academic level This case study is suitable for an undergraduate or graduate-level course on strategic sourcing or supply chain management or a risk management module in operations, strategy or finance course (e.g. how to deal with input cost fluctuations). Supplementary materials Teaching notes are available for educators only. Subject code CSS 11: Strategy.

Critical Success Factors of Water and Power Public–Private Partnerships in Developing Countries: A Systematic Review

Public–private partnerships (PPP) have evolved as a choice of infrastructure procurement for numerous developing countries, particularly in the water and power sectors, thereby capturing the interest of researchers. A rich body of literature exists in the field of PPPs, as well as their critical success factors (CSF). Despite the valuable insights garnered from individual studies, a research gap exists in conducting a meta-synthesis of the findings from multiple developing countries and investigating the broader elements and themes of power and water PPP CSF research. This systematic review employed the PRISMA protocol and identified 30 records. We explored the regions, sectors, yearly output, adopted research methods, key authors, and themes of the corpus reviewed. The review recognised four emerging trends in the records, which are identifying, ranking, exploring the interrelationship, or utilising CSFs. The review identified the top 30 frequent CSFs in the corpus, as well as their ranking by importance across multiple settings. The review concludes by addressing geographic and methodological limitations and proposing directions for future research.

The Political Economy of Military Aircraft, the Case of Europe

ABSTRACT This article measures and discusses the continuities and changes in the procurement process in Europe by examining the influence of national preferences in terms of sovereignty, industrial issues, and strategic needs on procurement strategies. We focus on the aerospace defense industry and study four aircraft markets (fighter aircraft, transport aircraft, helicopters, and UAVs) in 30 European countries during the post-Cold War era. Our results reveal significant heterogeneity in terms of strategies. They suggest that European countries lack coordination in their aircraft procurement strategies; if a country has sufficient industrial capacity, it will seek to maximize national industrial benefits in its procurement choices, to the detriment of its European partners; conversely, if a country has no industrial capacity, transatlantic suppliers would be preferable to European ones. Members of the former USSR and Warsaw Pact have phased out old Soviet-era aircraft at different rates, depending on the market, with European suppliers benefiting more from this process than American ones. Overall, our study provides a comprehensive and nuanced perspective on the defense aircraft industry in Europe that can inform policymakers and stakeholders in this sector.

The origins of hospital food: Where does it come from and what do staff, patients and suppliers think about local food?

To identify the origin of fresh and minimally processed foods served to hospital patients, and explore the challenges and enablers to local food procurement in hospitals. A mixed methods study was conducted in a healthcare network in Victoria, Australia. Packaging labels and product information were used to audit fresh and minimally processed foods purchased in 1 week. Processed food items and meals made offsite were not audited. Interviews were conducted with patients, staff and suppliers to explore their perspectives towards local food in hospitals. Framework analysis was used to identify themes. Of 105 food products audited, 32% were imported, 25% were 'local' from Victoria and the remaining 43% were from within Australia (excluding Victoria). Qualitative interviews revealed several challenges including: increased cost of local food items, inconsistent supply and variable quality of local produce, difficulty accessing origin information, and lack of autonomy for hospitals to make food procurement choices. Enablers included: conducting a food origin audit to increase awareness, group purchasing organisation prioritising local food suppliers, and suppliers valuing local produce. A food origin audit and interviews with stakeholders provided a rich understanding of current practices and how to increase local food procurement.

An expanded frame for lithic material choices

For a long time, lithic procurement strategies have been used as an indicator of mobility abilities and material preferences of various hunter-gatherer groups across time. Different procurement patterns between the Middle and Upper Palaeolithic in Europe have led to interpretations of species differences between Homo neanderthalensis and Homo sapiens , and diverse influences of the environment on the populations. With the use of hypotheses on local or long-distance lithic procurement, agent-based models can function as a neutral and quantitative test of procurement choices. By statistically testing hypotheses made from ethnographic and archaeological studies, the material of four Middle Palaeolithic sites in the Middle Rhine area, Western Germany, set the frame for analysing procurement choices of the Neanderthals in their environmental setting. From the analyses of the agent-based models, it is visible that it is the availability of raw material resources that influences the procurement of the hunter-gatherer agent. By reflecting this result in the local environment and ecological options, it is argued that the advantages of local procurement succeeded the ones of long-distanced procurements for the Neanderthals. Thereby the study provides an example of the beneficial union of qualitative and quantitative methodologies in archaeological research, and how the science of the past can improve by adding computational methods of the present.

Optimal procurement choices for development of public infrastructure - identification of key metrics

Optimal procurement choices for development of public infrastructure - identification of key metrics

Impact of Traditional Procurement System on Construction Project Delivery

Poor project performance issues have been a problem in the construction industry. A large number of projects have failed to meet their goal as a result of the choice of procurement adopted. The traditional method is the commonly used procurement method in the construction industries of the world, and its sequential and linear nature has serious implications on project time, cost and quality baseline performance. The purpose of this study was to determine the impact of the traditional procurement system on construction project delivery. The specific objectives of this study were; to assess the influence of the traditional procurement system on construction project parameters, and to determine the factors responsible for the poor bottom lines of traditionally procure construction projects. This study was achieved using a structured questionnaire administered to construction experts using a purposive sampling method. With a reliability index of over 0.800, the data gathered were analysed using appropriate descriptive tools. It was found that projects delivered through the traditional procurement system have the greatest impact on project time parameters, more on cost and quality parameters. Also, poor time, cost and quality performance are caused by major factors such as rework, poor original planning/unrealistic scheduling, poor communication among project participants, lack of competent staff and inadequate proper training of available staff, and design and documentation issues. Project clients and consultants should be careful in project procurement selection to ensure that maximum value and goals are met

Decision-Making Framework for Construction Clients in Selecting Appropriate Procurement Route

Procurement decision-making is a crucial determinant of project success. Although several objective, stage-based models have been proposed to guide clients’ procurement choices, little emphasis has been made on the subjective nature of construction clients. Recognizing the role of clients’ experiences in justifying procurement routes, this study develops a decision-making framework that is capable of guiding construction clients in making informed procurement choices. Adopting a mixed-method approach, comprising semi-structured interviews and multi-objective optimization, relevant procurement options were appraised based on clients’ specifications and project deliverables. The lived experiences of construction clients and the importance they attach to pre-defined selection rating criteria were subsequently evaluated, using a template that enables clients to prioritize procurement methods for different project types. The resultant framework offers a holistic, practical, and collaborative procurement selection process that promotes the efficient delivery of construction projects by reducing the cost overrun and delays associated with uninformed client decisions in construction procurement.

Game Theory-Based Framework for Analyzing the Collaborative Dynamic of Tacit Knowledge Sharing and the Choice of Procurement and Contract Types in Mega Construction Projects

In construction projects, owners’ and contractors’ decisions as to whether or not share their tacit knowledge transparently with each other determines the choice of project delivery and contracting methods and their collaborative behaviors in the projects. The dynamic of collaboration is a complex one and is often influenced by the other player’s intent to collaborate. This paper proposes a quantitative framework using game theory to analyze the collaborative dynamic interplay in construction projects. The framework demonstrates that when an owner’s and a contractor’s knowledge leveragability (L) is very high and synergy (S) is enhanced as a result of knowledge sharing in complex construction projects, the Nash equilibrium state lies beneath the Pareto frontier. This means that sharing tacit knowledge transparently about budgets by choosing the best value procurement with GMP or IPD contracts can promote collaboration and provide better payoffs to both stakeholders than not sharing the knowledge by choosing the Design–Bid–Build method using a low-bid procurement in conjunction with a fixed-price contract. This research contributes to the body of knowledge by proposing a theoretical framework that enables both owners and contractors to understand the economics of collaboration in the context of complex projects.

Role of Retail Price Strategy in Influencing Customer Purchase Intention

Price sensitivity was consistently a matter of worry for retailers when planning pricing strategies. The expectant reaction towards changing price is high felt among the middleclass purchasers and impact more on their purchasing decisions in India. This research plans to decide, regardless of whether the estimating special technique for the key-esteem classification, acquires a huge change in the offer of key-esteem things or not. The examination is decisive and applied the quantitative method to approve the proposed speculation. An organized poll comprising 21 inquiries was utilized to gather information through an online review. The Snowball inspecting strategy was utilized to gather information from respondents, including youthful workers, homemakers, and entrepreneurs, and gathered reactions towards the incessant value limits offered by driving hypermarkets chains and general stores in the country. The straight relapse is directed utilizing SPSS programming. Discoveries of the exploration presumed that as the Indian center section is exceptionally evaluated touchy, henceforth tremendous value limits impel brand agitating among them and even impact the pre-purchasing choice for procurement. The significant limitations of the examination were that it centered uniquely around contemplating the effect of cost special proposals on deals which is exceptionally relevant and restricted to item classes, wherein there are different factors additionally which can altogether affect deals. We have decided the effect of one develop over another under the shadow of key-esteem classifications, while further exploration can check the effect separately or on different classifications too. The exploration is absolutely experimental and directed interestingly by the analyst to imply the significance of value advancement procedure in consonance to deals. The newly gathered essential information utilized for approval.

Optimal Procurement Choices for Development of Public Infrastructure

Optimal Procurement Choices for Development of Public Infrastructure

Organisational choices in public procurement: what can public management learn from the private sector?

ABSTRACTIn the public context, the efficient and effective management of procurement activities has a crucial impact on the achievement of operational and broader government objectives. In particular, the potential contribution of procurement within local governments has been broadly recognized, and organisational procurement choices represent a strategic aspect that must be managed to contribute to these objectives. Through the analysis of data on 371 Italian municipalities, this paper discusses how to design procurement organisation variables for local governments. Three possible organisational models are identified (i.e., authoritative procurement, silo procurement, and local procurement) and discussed from the perspective of internal and external contingencies that may affect organisational decisions.

Centralized Stochastic Energy Management Framework of an Aggregator in Active Distribution Network

This paper develops a detailed and sequential procedure for short term operation of an aggregator to minimize the cost of the consumer and risk of the aggregator, which includes day-ahead (DA) and real-time (RT) operation. DA operation has two stages: consumer load scheduling and risk-based energy procurement. Consumer load scheduling implemented over a radial distribution network by a cost minimization objective function which considers electricity price and solar photovoltaic (PV) uncertainty, peak-to-average ratio, and phase unbalance. This model is formulated as a mixed integer nonlinear program. In the second stage, a risk-based energy procurement is formulated. Here, the aggregator has the choice of energy procurement from wholesale market, either in DA market or RT market, to meet the scheduled power. In RT operation, the aggregator takes a decision on share of RT purchases and battery schedules to minimize the cost of scheduled load power deviations. In order to realize this, a rolling window optimization is implemented, which is modeled as a mixed integer problem. The framework is demonstrated with a detailed case study of 15-node radial active distribution network consisting of 420 residential customers.

The reasoning behind infrastructure manager’s choice of procurement instruments

PurposeThe purpose of this paper is to show that for frequently procuring public clients: the reasoning behind the use of procurement instruments is a process in its own right that requires managerial and scientific attention; modeling this process contributes to making sensible procurement choices; and managing this process is a relevant factor in the client’s development toward strategic procurement.Design/methodology/approachA model is developed to conceptualize the reasoning behind procurement instruments. Using this model in a case study, the reasoning behind the evolution of a particular procurement instrument as applied by a public infrastructure management organization is reconstructed.FindingsThe case study results show that an initially explicitly formulated set of main reasons for operating a qualification system can implicitly evolve over time into a different set of reasons. From a managerial point of view, explication of implicit reasons is important to both avoid the risk that the real value of the procurement instrument remains undetected as well as properly assess its strategic alignment with higher level strategies. The conceptual model proves to be a useful tool to support that.Originality/valueBringing the reasoning behind the use of procurement instruments to the fore, this study explores an area of construction procurement research that is positioned between the disciplines of purchasing and supply management, knowledge management and strategic management.

A francia védelmi kiadásokról a 2019–2025-ös védelmi költségvetési törvény alapján

This article focuses on the implementation of French strategic priorities of the 2017 Strategic Review of Defence and National Security by comparing the tasks introduced in the 2019–2025 Military Programming Law to the realities of present operational mandates. The paper introduces the main priorities and schedule of the 2019–2025 Military Programming Law, as well as the proportional expenses in capacity development and procurement choices; and compares these to the previous defence expenditure cycle. The paper further identifies opportunities and limits in the strategies of the increased operational expenses, the restructuring of operational deployments, as well as in the development of multilateral defence cooperations. The prospect of the complete implementation of the new programming law is analysed in the context of political economy conditions.

Innovative Food Procurement Strategies of Women Living in Khayelitsha, Cape Town

The combination of persistent levels of inequality and poverty, alongside the advent of rapid urbanisation, mean urban food insecurity is set to be one of the biggest development challenges of this century. As women play a crucial role in the food security status of urban poor households, understanding and supporting the life-sustaining food procurement practices used by women ought to be a key strategy in addressing urban food insecurity. Particularly, the paper draws on primary qualitative research I conducted with women from Khayelitsha, Cape Town’s largest informal settlement. This case study explored the beliefs, practices and preferences that govern women’s food procurement choices. The study found that women adopt a range of innovative food procurement strategies, which significantly improve household food security prospects. These include buying in bulk, skilfully navigating the informal and the formal food economies, utilising their social networks and trading off food with other important non-food expenses. Understanding these practices can provide greater insight into how best to enhance urban food security. The implications are that women need to be better supported rather than, as most mainstream programmes suggest, encouraged to take on more work outside the household, whilst still faced with the lion’s share of housework.

Procurement and Governance Choices for Collaborative Infrastructure Projects

Collaborative approaches to infrastructure procurement are increasingly popular around the world due to their potential to provide improved project performance compared with more traditional approaches. The problem is that project outcomes continue to be unpredictable. Previous research has shown that this is the case regardless of whether the chosen procurement approach is based on price or nonprice selection of the project team. This is a major choice that clients make, but the presented research shows that governance choices for project execution are more important. This is significant because clients tend to focus more on procurement choices and typically do not differentiate governance based on those choices. This needs to change, and the authors show that optimal governance configurations vary on the basis of the chosen type of team configuration. For example, three specific governance arrangements for workshops are highlighted for single teams, and two specific governance arrangements for risk/reward sharing are highlighted for multiple teams. This study identifies governance actions that are associated with superior time and cost outcomes on collaborative infrastructure projects in Australia run by experienced public-sector clients under the two procurement scenarios. Based on a survey of 320 senior managers, independent sample t-tests were conducted to compare the application of governance actions among three distinct groups of projects, based on type of team selection and type of project outcome. The study provides evidence of the most effective approaches to project governance in a country that is a world leader. The results provide much needed recommendations for improved project performance based on large-scale quantitative analysis, which before now has not existed. Overall, the study recommends more attention be paid to noncontractual governance under both approaches to team selection, although the specific actions recommended vary.

EATS: a life cycle-based decision support tool for local authorities and school caterers

PurposeThis paper describes the research that underpins the development of EATS (the Environmental Assessment Tool for School meals), a life cycle-based decision support tool for local authorities and their contractors responsible for providing catering services to schools. The purpose of this tool is to quantify the carbon footprint (CF) and water footprint (WF) of the meals served in order to identify hotspot meals and ingredients, and suggest simple, yet transformative, reduction measures. A case study is used to test the tool, comparing the impacts of 34 school meal recipes.MethodsThe tool utilises secondary data to calculate values of CF and WF for a school meal from cradle to plate. This includes three phases: (1) food production, (2) transport of each ingredient to a generic school kitchen in the UK, and (3) meal preparation. Considerations for waste along the supply chain are included. After testing the tool against a set of nutritionally compliant meals, a sensitivity analysis was performed to investigate the influence of the origin and seasonality of the ingredients, transport mode and cooking appliances used on the final results.Results and discussionThe results of the case study show the predominance of the production phase in the overall carbon footprint and that there is a strong tendency towards lower impacts for meat-free meals; however, this is not always the case, for instance some of the chicken-based meals present lower impacts than vegetarian meals rich in dairy ingredients. The sensitivity analysis performed on one of the meals shows that the highest value of CF is obtained when the horticultural products are out of season and produced in heated greenhouses, whilst the highest value of WF is obtained when the origin of the ingredients is unknown and the global average values of WF are used in the analysis; this defines a crucial data need if accurate analyses are to be uniformly possible.ConclusionsThis article focuses on the potential offered by the public food sector for a transformative reduction in the environmental impact of urban food consumption. The results presented prove that careful menu planning and procurement choices can considerably reduce the overall environmental impact of the service provided without compromising quality or variety. This research thus supports those responsible for making these decisions via a user-friendly tool based on robust scientific evidence.

Lighting energy consumption in ultra-low energy buildings: Using a simulation and measurement methodology to model occupant behavior and lighting controls

As building owners, designers, and operators aim to achieve significant reductions in overall energy consumption, understanding and evaluating the probable impacts of occupant behavior becomes a critical component of a holistic energy conservation strategy. This becomes significantly more pronounced in ultra-efficient buildings, where system loads such as heating, cooling, lighting, and ventilation are reduced or eliminated through high-performance building design and where occupant behavior-driven impacts reflect a large portion of end-use energy. Further, variation in behavior patterns can substantially impact the persistence of any performance gains. This paper describes a methodology of building occupant behavior modeling using simulation methods developed by the Building Energy Research Center (BERC) at Tsinghua University using measured energy consumption data collected by the University of Washington Integrated Design Lab (UW IDL). The Bullitt Center, a six-story 4831 m2 (52,000 ft2) net-positive-energy urban office building in Seattle, WA, USA, is one of the most energy-efficient buildings in the world (2013 WAN Sustainable Building of the Year Winner). Its measured energy consumption in 2015 was approximately 34.8 kWh/(m2∙yr) (11 kBtu/(ft2∙yr)). Occupant behavior exerts an out-sized influence on the energy performance of the building. Nearly 33% of the end-use energy consumption at the Bullitt Center consists of unregulated miscellaneous electrical loads (plug-loads), which are directly attributable to occupant behavior and equipment procurement choices. Approximately 16% of end-use energy is attributable to electric lighting which is also largely determined by occupant behavior. Key to the building’s energy efficiency is employment of lighting controls and daylighting strategies to minimize the lighting load. This paper uses measured energy use in a 330 m2 (3550 ft2) open office space in this building to inform occupant profiles that are then modified to create four scenarios to model the impact of behavior on lighting use. By using measured energy consumption and an energy model to simulate the energy performance of this space, this paper evaluates the potential energy savings based on different occupant behavior. This paper describes occupant behavior simulation methods and evaluates them using a robust dataset of 15 minute interval sub-metered energy consumption data. Lighting control strategies are compared via simulation results, in order to achieve the best match between occupant schedules, controls, and energy savings. Using these findings, we propose a simulation methodology that incorporates measured energy use data to generate occupant schedules and control schemes with the ultimate aim of using simulation results to evaluate energy saving measures that target occupant behavior.

Coordination of Winegrape Supply Chains in Emerging Markets

ABSTRACTThis study investigates factors influencing coordination of winegrape procurement in emerging wine regions in Michigan, Missouri, and New York. Wineries in these emerging regions face different vertical coordination challenges than in well‐established regions, which may affect procurement choices. Results corroborate prior findings that quality considerations and the need to safeguard investments in specialized assets, respectively, increase usage of more formal coordination mechanisms like written contracts and vertical integration or ownership. Consistent with prior findings of studies of wineries in established wine regions, we find that perceived difficulty in measuring grape quality attributes leads to tighter coordination; a point previously undocumented for emerging regions. [EconLit citation: Q130]