International Journal of Procurement Management (32 papers in press)
The Impact of Internal and External Factors on Sustainable Procurement: A Case Study of Oil Companies
by Ajmal Mian, Mohammed Hasan Alhashmi, Mehmood Khan
Abstract: The contentious and growing sustainability concerns within the UAEs oil and gas industries have highlighted the necessity of systematically examining the internal and external organisational factors that influence sustainable procurement (SP) in the industry. This study investigates the internal and external factors most influencing SP in the UAEs oil and gas industry. Utilising questionnaires, the researcher obtained data from 100 procurement professionals working in three oil and gas companies operating in the UAE. The research framework, developed through an extensive literature review, was analysed and tested using structural equation modelling (SEM). The results reveal that both internal and external factors have a positive and statistically significant impact on sustainable procurement, although internal factors have a relatively greater effect. This study found that leadership in change management, internal management structure, management strategy, and infrastructure cost management, are the most influential internal factors affecting SP, whilst social and economic factors are the most influential external factors. An emphasis on these internal and external factors can help oil and gas companies operating in the UAE greatly improve their level of SP performance.
Keywords: Internal factors; External factors; Sustainable procurement; Oil industry.
Is advertising on social media effective? An empirical study on the growth of advertisements on the Big Four [Facebook, Twitter, Instagram, WhatsApp]
by Mohammed Nuseir
Abstract: The past decade has witnessed a rise in the use of social media for communication. Social media have created virtual spaces that businesses use to sell their goods and services. Platforms such as Facebook, Twitter, WhatsApp and Instagram (the Big Four) have become known for linking individuals through text, pictorial, and video messaging, thus creating a way of passing information to customers instantly in a way that creates appeal. An evaluation of the level of involvement of customers with the Big Four indicates that businesses choose their social media platform based on the likelihood of reaching customers. This study identified the reciprocal relationships that businesses have with their customers via the four main social media platforms. This relationship has been created because customers feel they have an individual space in social media, and because the businesses that advertise on social media use personalised messaging to their advantage. This ownership and personalisation speaks to the degree to which relationships are formed between corporate entities and individuals in contemporary society.
Keywords: Advertising; Interactive; Communication; Information; Social media; Platforms; Big Four.
Multi-objective Optimization Approach as Decision Making Support for Product Mixing and Raw Material Allocation Planning
by Sutrisno Sutrisno, Solikhin Solikhin, Purnawan Adi Wicaksono
Abstract: This article is addressed to discuss a newly developed decision making support by using multi-objective optimisation approach for production planning and supplier selection problem of raw material. The problem faced is finding an optimal value for the planned production volume of each product at each time period and the raw material volume that should be purchased from each supplier for each type at each time period such that the total occurred cost is minimal and all occurred constraints are satisfied. We have solved the problem by finding the Pareto set to be the optimal solution by initially converting it into single objective optimisation by means of weighting method. From the computational simulation, the optimal decisions were obtained for all time periods which are the optimal volume of each raw material type that should be purchased from each available supplier, and the planned optimal volume of each product to be produced.
Keywords: Decision making support; Multi-objective optimization; Product mixing; Raw material allocation.
Efficiency and Bid Rigging in Simultaneous Procurement Auctions under an Oligopoly
by Aaro Hazak, Tanel Kerikmäe, Evelin Pärn-Lee
Abstract: Splitting of large procurements into several smaller ones has been propagated, for example in the European Union and OECD members, as a way for enhancing competition and improving institutional framework for market efficiency. This paper presents a conceptual argumentation on the causes and consequences of potential bid rigging when simultaneous bids for similar goods are asked from oligopolists. It appears that calling for similar bids simultaneously may incentivise collusion among bidders, while arranging several consecutive procurement auctions could lessen that problem. Moreover, simultaneous procurement auctions may result in a relatively high cost of supply due to the larger risks involved for bidders. Furthermore, bid rigging remains difficult to detect under simultaneous procurement auctions due to a large degree of uncertainty for bidders, which supports relatively high bid prices that may, in fact, be collusive.
Keywords: bid rigging; collusion; oligopoly; umbrella pricing; simultaneous procurement auctions.
Analysis of Relationships of Third Party Logistics Enablers Using Multi-Criteria Decision Making Technique DEMATEL-Based On ANP (DANP)
by Maryam Aliei, Mostafa Kazemi*, Amir Mohammad Fakoor Saghih, Zahra Naji-Azimi
Abstract: Globalisation and adapting to market conditions, the existence of competitive pressures, such as the entry of emerging companies into the competition market and the need for increased investment costs, has led manufacturers to improve their innovative ways of serving customers. The third party logistics (3PL) Provider is an external supplier that manages, controls and performs logistic activities on behalf of the customer. In this paper, seven major dimensions of third-party logistics enablers have been evaluated with MAXQDA(v11) software and using literature review, text content analysis and specialised interview with 16 experts from the logistics industry, then using the DANP technique. The results of the Analysis in relation-impact diagrams show that the most important enablers are: manufacturing, technical and marketing and sales, financial, human resources and strategic enablers, respectively. Also, technical and manufacturing enablers are of the most influential enablers, and has the most interaction with other enablers as well.
Keywords: Third Party Logistics (3PL); empowerment; DANP; Multi-Criteria Decision Making Introduction.
Perishable Inventory Management Using GA-ANN and ICA-ANN
by Saeideh Farajzadeh Bardeji, Amirmohammad Fakoor Saghih, Alireza Pooya, Seyed-Hadi Mirghaderi
Abstract: We have developed a multi-objective multi-product inventory management model for perishable products, focusing on the inventory management of veterinary drugs. This model minimises holding, shortage, and expired costs and also demand forecast error simultaneously. The number of expired and shortage drugs can be calculated for each period using this model. Data from three types of veterinary drugs have been collected from a distribution centre (DC). In this research, multi-layer perceptron (MLP) neural network is used to forecast the demand and genetic algorithm (GA) and imperialist competitive algorithm (ICA) are used to solve and find satisfactory solutions. In this research, artificial neural network (ANN) is combined with the two above-mentioned algorithms to solve the problem. The results show that the proposed model can find high-quality solutions because it reduces inventory costs and forecast errors in the DC. Finally, the results of combining ANN with each of the algorithms were compared and it was concluded that the combination of ANN and ICA produced better solutions.
Keywords: Inventory management; Genetic Algorithm ; Imperialist Competitive Algorithm ; Artificial Neural Network ; Multi-Layer Perceptron; Veterinary drug; Multi-objective Multi-product model.
Comparing the effects of brand equity, job security and salary and wages on the efficiency of human resources from the perspective of the staff.
by Seyed Fathollah Amiri Aghdaie, Azarnoush Ansari, Mahdi Amini Filabadi
Abstract: The purpose of this study is to compare the effects of brand equity, job security and salary and wages on the efficiency of human resources from the perspective of the staff in the hotel industry. For this purpose, a sample of 520 managers and supervisors who are working in the hotel were selected by stratified probability sampling method. The information has been collected by researcher-made questionnaires and the data has been analysed by LISREL 8.8 and SPSS 21. The reliability of the questionnaire which determined through the Cronbach's alpha coefficient was 0.933. The results of the hypotheses test showed that brand equity and job security from the perspective of employees have a positive effect on employees' efficiency; the way and amount of salary payments have a significant and positive effect on employees efficiency; and efficiency is influenced by brand equity and salary and wages respectively.
Keywords: Brand equity; Job Security; Employee Efficiency; Hotel Services.
COLLABORATIVE INNOVATION: WEAK COMMITMENTS AND UNENFORCEABLE CONTRACTS
by John Hanson, Joachim Henkel
Abstract: Innovation that crosses organisational boundaries, such as those between buyers and sellers, requires complementary investments of assets by participants. This creates a contracting problem with the possibility of opportunistic behaviour. We show that this problem can be overcome using the mechanism of weak commitments. In situations where both parties can see a return on their investment in innovation that increases with their partners investments, there is a bounded range of commitment that can be made unilaterally by either party within which cooperative behaviour becomes the dominant strategy for both parties. This finding is important because it shows that collaborative innovation is possible without the need for elaborate contracts or reliance on intangible constructs such as relational trust or reputational cost. This suggests that collaboration is possible in situations where it was previously considered unlikely and suggests new approaches to research on inter-firm collaborations.
Keywords: collaborative innovation; opportunism; weak commitments; game theory; prisoners dilemma.
What is the value of e-Procurement for suppliers? The drivers, barriers and opportunities for engaging MRO suppliers
by Cristiane Biazzin, Andre Luis Cardoso
Abstract: While an increasing number of studies recognise the importance of e-procurement tools (EPT), purchasing executives seem to face continuous challenges to engage suppliers to adopt such tools. This study aims to explore the barriers to maintenance, repair and operations (MRO) suppliers in adopting EPT, and how to overcome them by developing a multiple case study. Our findings indicate that suppliers willingness to adopt EPT depends on the maintenance of ties and relations previously established with customers. While access to new customers is perceived as a driver to adopt EPT, its use demands robust investment in data management and technology, otherwise suppliers will increase their operational activities and costs. Moreover, suppliers who have the capability to integrate EPT into an intelligent system have a higher willingness to accept it.
Keywords: e-Procurement; MRO supplier; technology adoption; strategic sourcing; case study.
A Causal Relationship among the key factors of Supplier Relationship Management: A Fuzzy DEMATEL Approach
by Lalit Pothal, Sushant Tripathy, Aishwarya Dash
Abstract: Put essentially, supplier relationship management (SRM) is tied in with incorporating the correct innovation, procedures, assets, and instruments expected to adjust the manufacturing/service organisations with their suppliers to make more grounded and increasingly steadfast connections. Many organisations are focusing their concentration only customer relationship due to short-term goals, e.g., sales and profit and missing their vital relationship with suppliers. This paper intends to investigate and assess the basic elements which have critical effect on the SRM. The fuzzy DEMATEL method has been used to build up the causal relationship among the basic variables extracted from the literature and to decide the level of impact of a factor. The outcomes uncover that supplier development program, established mutual relationship, good management practice and common goal are the most critical factors which influence SRM. Moreover quality issue due to delivery, benefit measurement, supply uncertainty and supplier competency are also remarkably impact SRM. This paper may be a guideline to the decision makers of manufacturing organisations for the betterment of SRM strategy.
Keywords: SRM; Key Factors; Fuzzy DEMATEL.
Reviewing the Concept of CKM with Social Perspective by means of the ANN-GT Approach (Case Study: Environmental protection by the water market implementation)
by Maedeh Rabbanimehr, Ali Sanayie, Ali Kazemi
Abstract: The purpose of this research is to develop a customer knowledge management model adopting a social marketing approach for solving social problems by a case study for the facilitation of water market implementation. In this regard, mixed research and qualitative approaches consisting of thematic analysis and grounded theory, together with a quantitative approach (artificial neural network) have been used, and ultimately, a combination model has been proposed. The statistical population incorporates three groups of experts (academics, farmers and water industry experts) in the qualitative section of the research, and in the quantitative section, it includes farmers throughout the Zayandehrood Basin in Iran. One of the most important results of this research is the ranking of customer knowledge management indicators taking a neural network approach in predicting the social facilitation and planning, based on which it attracts popular participation in social issues.
Keywords: Customer knowledge management; Social marketing; Social facilitation; Water market; ANN; GT.
E-Procurement Practices to improve the efficiency of Vendor Transactions in Indian Cement companies
by Tisha Meriam Cherian, Shanmugam Munuswamy, Mohamed Jasim
Abstract: E-procurement ensures an end-to-end integrated purchase of materials right from indent management until final payment through internet which results into cost efficiency in a supply chain management. While the e-procurement has been successfully practiced in global markets, it is in the early stage of adoption among cement companies in India. The main objective of this study is to explore the factors influencing e-procurement of materials in the cement industry. The other objective is to measure the impact of e-procurement practices on materials purchase in the value chain of the said industry. Initially, the study conducted a Delphi interview with selected managers. Based on the information from interview, a structured questionnaire was framed and the same was used to collect information from 126 employees of five cement companies. Besides descriptive analysis, the factor analysis was applied to identify the significant factors in e-procurement. A confirmatory factor analysis was carried out to verify the factor structure of the set of observed variables. The study identified the significant factors that contribute to e-procurement practices in India. Interestingly, it was also found that the employees are comfortable to use e-procurement but require adequate training and better e-infrastructure.
Keywords: E-procurement; Vendor transactions; Business transactions; E-commerce; Cement industry.
Application of integrated fuzzy MCDM approach for financial performance evaluation of Turkish technology sector
by Eyad ALDALOU, Selçuk Perçin
Abstract: Information and communications technology (ICT) sector of Turkey encountered a massive increase since 1970s as a result of the rapid international development in the communications and information technologies. Compliance with such a huge investment and the market integration of ICT sector, the analysis and evaluation of its financial performance is very important. In this regard, an integrated fuzzy Shannons entropy and fuzzy ELECTRE I approach is proposed. To avoid subjectivity in the decision process, FSE method is used to assign weights for the evaluation criteria, then FELECTRE I method is applied to evaluate and rank alternatives. The proposed approach is used to identify and evaluate the financial performance of companies listed at BIST Technology Index of Turkey, in which DESPEC Company is financially evaluated to be the best company within the sector. Sensitivity analysis and comparison of the results with other MCDM models are also provided.
Keywords: financial performance evaluation; fuzzy Shannons entropy; FSE; FELECTRE I; Turkish technology sector.
Manufacturer optimal stock requirement and production rate to maximise the expected profit during peak time
by Mahadev Ota, S. Srinivasan, NANDAKUMAR C. D, Khalid Waheed
Abstract: n today's competitive business world, the manufacturers have to face a very volatile market demand and hence need to take the decision accordingly so as to maximise their profit. For a manufacturer, the production rate is usually constant in the short run and may not be adequate to meet the demand during the upcoming peak period. Therefore he needs to keep some stocks as a reserve so as to meet the upcoming peak demand period. But storage space and holding costs are another concern. Considering these problems, this paper aims at developing a model considering the number of order as a Poisson process with individual demands following lognormal distribution and find the optimal initial stock requirement to meet the peak period demand which maximises the expected profit. In addition to this, waiting period for the first order, the time between the successive orders, probability of shortage of stock at a given initial level during the peak time, optimal initial stock requirement to keep the probability of shortage below a predetermined level has been discussed. The numerical examples suggest that an optimal solution can be obtained which would maximise the manufacturer expected profit.
Keywords: optimal initial stock; manufacturer model; production rate; peak time; probability of shortage; expected profit; Poisson process; compound distribution.
Gap Analysis in Supplier Sustainable Development - With a Case Study in Healthcare Service
by Arash Shahin, Mina Razavi
Abstract: The objectives of this study are threefold: to identify the three factors of supplier sustainability; to calculate the gap ratio of the three factors; and to prioritize the gaps in terms of their importance ratings. For this purpose, a healthcare service supplier has been investigated as a case study. Base on literature review, the indicators of the three factors of supplier sustainability of healthcare service have been identified and confirmed using content validity analysis. Then, by calculating the expectation and perception of indicators, the gap of the three factors of supplier sustainability has been computed and finally, the gaps have been prioritized in terms of their importance ratings. Findings indicated that the supplier under study had a negative gap in all of the indicators of the three factors of sustainability and its highest and lowest gaps were related to the economic and environmental factors, respectively.
Keywords: Sustainable development; Factors of sustainability; Supply Chain Management; Supplier; Gap analysis; Healthcare service.
Developing a Brand Avoidance Model in Pygmalion Cycle
by Azarnoush Ansari, Hossein Rezaei Dolatabadi, Shahnaz Honarmand
Abstract: In this research, a model has been identified and presented for multiple dimensions of brand avoidance in Iranian home appliance industry. For designing the model, the causative conditions of factors, which lead to brand avoidance in the home appliance industry, were considered along with the dominant platform underlying brand avoidance and weakening or reinforcing interventional conditions. The research methodology is grounded. 256 semi-structured interviews were conducted. The sampling method is purposeful and judgmental along with the snowball method. To identify the consequences of brand avoidance, three perspectives of society, customer and companies have been investigated. The results of the research indicate the experiential, identity, moral, deficit-value, marketing, attitude and cognitive dimensions of brand avoidance. The Pygmalion effect was used to avoid the brand. In this study, gender behaviours were identified as intervening conditions and the role of government as the dominant platform.
Keywords: Brand Avoidance; Gender Behaviors; Government Role; Home Appliances; Brand Avoidance Consequences; Pygmalion Cycle.
Channel Coordination in a two echelon supply chain with lead time reduction using wholesale price scheme
by Jafar Heydari, Elham Zakaryaie, Roya Tat, Elham Heydari
Abstract: This paper develops the coordination of a two-echelon supply chain (SC) under lead time reduction strategies using a wholesale price contract as an incentive scheme. In the investigated model, the buyer defines the order quantity and the seller determines the replenishment policy and the lead time reduction strategy. Under the decentralised decision structure, both members' decision models are optimised where each party tends to maximise own profit. In the next step, the centralised decision model for the whole channel is studied where a single decision-maker optimises the entire SC profitability. The results show that under the decentralised decision model not only the channel profitability is lower, but also there is no effort for crashing lead times. Finally, a wholesale price coordination contract is developed to coordinate SC and convince both members to globally optimise their decisions. Our analysis indicates that the presented coordination policy leads to a win-win result for both members and at the same time reduces lead times.
Keywords: Supply chain coordination; lead time reduction; wholesale price scheme.
An Integrated approach of ISM and Fuzzy TOPSIS for Supplier Selection
by Tran Thi Tham, Nguyen Trong Tri Duc, Tran Thi My Dung, Nguyen Hong Phuc
Abstract: Supplier selection is one of the most important tasks that contribute to the success of supply chain management. Choosing the right supplier will bring many benefits to the enterprises, such as costs reduction, profit increase, flexibility and competitiveness improvement. This study is conducted to develop a methodology that provides suitable supplier selection solution. Firstly, a set of 23 criteria are used to analyse the relationships between criteria by using interpretive structural modelling (ISM). The less important criteria will be eliminated though the model. Next, the fuzzy TOPSIS method, which focus on the distance from alternatives to positive ideal solution and negative ideal solution is applied to evaluate and rank suppliers. The result of ISM suggests choosing 22 appropriate criteria among the original 23 criteria used for the supplier selection problem. The result of fuzzy TOPSIS shows the ranking of six suppliers through a case study of a plastic packaging company.
Keywords: Interpretive Strutural Modeling (ISM); TOPSIS; Supplier selection; Fuzzy theory; Supply chain management.
Inventory Model for Deteriorating Items with Seasonal Price and Time Dependent Ramp type Demand
by Ashish Sharma, Mukesh Kumar, Amit Kumar Saraswat
Abstract: In real life, deteriorating items are considered as the high profit products due to seasonal behaviour in demand. Another observation for the demand is the dependency over price as well as time. Many seasonal items have single opportunity of replenishment and the replenished inventory is used for successive number of demand seasons. In this paper, simultaneous procurement and pricing policies are considered for the seasonal deteriorating items with ramp type, price and time dependent demand rate. Time dependent partial backlogging is considered. Managerial insights are extracted from analytical results, numerical example and sensitivity analysis.
Keywords: Inventory; Deterioration; Demand; Product life cycle; Time-dependent partial backlogging; Pricing.
DYNAMIC GREEN LOCATION AND ROUTING PROBLEM FOR SERVICE POINTS
by Büsra Gülnihan Dascioglu, Harun Yazgan
Abstract: Green policies have been developed because of enabling recycling by reducing the usage of resources like energy, manpower, etc. In this article, a visual dynamic approach for determining depots' location and routing problem for technical services of white goods is examined regarding minimising the fuel consumption and depot opening and running costs. The problem is modelled under green logistic perspectives, considering the lowest fuel consumption and minimum carbon dioxide (CO2) emission. A new approach based on
Keywords: green p-median model; green vehicle routing problem; MILP; CO2 emission; supply chain management.
Replacing global sourcing with deep localisation: The role of social capital in building local supply chains
by Tobias Bohnenkamp, Holger Schiele, Matthias De Visser
Abstract: With globalisation still on the rise firms precede building their global supply bases in order to defend or improve their position against domestic as well as international competitors. However, when focusing on low-cost countries this picture turns reverse. Caused by government policies as well as purchasing strategies employed, more and more firms decide to shift their focus from global to local sourcing. Some firms even go as far as establishing entirely local supply chains, a strategy also understood as deep localisation. Drawing on social capital theory, we examine the role that social capital pillars can play for the successful outcome of deep localisation projects. Here, we make use of the unique situation that deep localisation offers and focus on social capital in network relationships. Through applying case study methodology, we compare successful and non-successful cases, analysing data from an automotive OEM as well as 1st and 2nd tier suppliers. Results indicate that social capital can have a facilitating effect. The study extends literature on global sourcing and social capital theory and suggests important implications for research and practice.
Keywords: Global & local sourcing; local supply chains; social capital; buyer-supplier relationships; case study methodology.
Cyber-physical systems with autonomous machine-to-machine communication: Industry 4.0 and its particular potential for purchasing and supply management
by Holger Schiele, Robbert-Jan Torn
Abstract: The number of publications on the fourth industrial revolution (industry 4.0, short: I4.0) has increased exponentially. Likewise, significant investments by firms are planned. However, the link between purchasing and I4.0 is largely lacking even though procurement managers have high expectations. The fourth industrial revolution which refers to the use of cyber-physical systems (CPSs) with autonomous machine-to-machine communication could have several implications for purchasing processes. Support systems for purchasers are been developed, such as contract analysis software, and the possibility of digital negotiations has emerged and could revitalise e-marketplaces. Operative processes can act autonomously, with automated demand identification in CPSs. To support the development of I4.0 strategies in purchasing, this paper contributes by clearly defining I4.0, distinguishing it from the third industrial revolution, structuring the potential development paths of I4.0 in purchasing and by presenting the result of a project to develop a I4.0 maturity model for purchasing.
Keywords: Purchasing; Supply Management; Industry 4.0; Smart Industry; Maturity profile; e-procurement; e-markets.
A single-vendor single-buyer supply chain model with price and green sensitive demand under batch shipment policy and planned backorder
by Bibhas C. Giri, Anamika Dash, Asish Sarkar
Abstract: This paper considers a two-level supply chain which consists of a single-vendor and a single-buyer. The vendor produces a single product in lot and transfers the whole lot to the buyer in a combination of equal and unequal sized batches. All unequal sized batches are in a geometric progression with a fixed common ratio. Consumer's demand is sensitive to the retail price and greening improvement level of the product. At the buyer, planned shortages are allowed and are completely backlogged. Assuming that the buyer has higher decision power than the vendor, we develop non-coordinated decentralised model and coordinated model with cost sharing contract, and the integrated centralised model. The numerical results show that the cost sharing contract gives an impressive improvement in the profits of both the vendor and the buyer over their profits in the non-coordinated system. A sensitivity analysis is performed to explore how the changes in the key model-parameters effect the optimal profits of the vendor and the buyer and the whole supply chain.
Keywords: Two-level supply chain; greening improvement level; planned shortage; cost sharing contract.
Importance ranking of supplier selection scorecard parameters - among Indian car manufacturing Industry
by Anand Patil, Jyoti Gogte
Abstract: The Indian automotive industry is now the fastest growing industry in the world ranking at fourth position replacing Germany. For any manufacturing industry, it is not only the customers but suppliers also play a very vital role in success. The proper selection of suppliers is necessary. In this research perception of 40 experts from the car manufacturing industry in India obtained about supplier selection scorecard parameters. The ranking is done based on preference. This ranking is then compared with the ranking of key parameters obtained from the literature survey and Dickson's (1966) ranking. Dickson's study is referred to as the base of research in this area since 1966 by most of the researchers. This research helps
Keywords: Supplier selection scorecard parameters; Supplier evaluation; Supplier performance; Supplier selection; Vendor performance; Car manufacturing industry in India.
The perceived impact of public sector procurement reforms on development agenda in the KwaZulu?Natal province
by Obianuju Okeke-Uzodike, Sandile Gabela
Abstract: Public sector reforms are integral part of government efforts towards achieving citizen centric and responsive good governance. Reforms in the public procurement are considered essential elements for strengthening and achieving performance within the public sector. In developing countries, procurement reforms are aimed at driving various socio-economic developmental challenges. Within the South African purview, reforms in the public sector serve as a means of social development and transformation but government continues to strive to achieve these objectives. This is because the South African public sector has been manned by various supply chain management challenges deemed detrimental to the efficient and effective delivery of government mandates. The researchers used a two-phase Delphi technique approach in collecting qualitative data and the findings demonstrate an alignment with the objectives of procurement reforms but with meagre success story and recommended a shared vision for achieving developmental objectives.
Keywords: Development; Public Procurement; Reforms; Transformation in South Africa.
Compliance with the stipulated procurement process in local governments: a case from a developing nation
by Onaopepo Adeniyi, Ojo, L. Damilola, Idowu, A. Oluwaseun, Kolawole, S. B
Abstract: Empirical evidence of compliance or otherwise with procurement laws especially in developing nations is limited despite its importance in ensuring quality project delivery. This research assessed compliance with the procurement law in the local government setting of a developing nation, challenges to compliance and workable solutions. A total of 108 copies of a carefully structured questionnaire were administered to individuals concerned with contract administration in the local governments in the study area and 87 were considered good enough for analysis. Data analysis was done using crosstabulation, chi-square, mean score and percentile. Among other findings, the study revealed that there is partial compliance with the procurement clauses in the local governments. The study also revealed that significant relationship exists between knowledge of the Procurement Act, owning a copy of the act and compliance with the act. These findings of this study will be useful for construction and public procurement administrators as an evidence of the need for a multifaceted action towards strengthening compliance.
Keywords: Compliance; construction; government; local; process; procurement; third-tier.
A Framework and Use Cases for Big Data in Procurement
by Stefan Zeisel
Abstract: Big data has become a buzzword that is broadly discussed in media and board rooms alike. However, in the procurement function there are few visible practical applications of a full-fledged big data scenario so far. Some academic research has been conducted as well as several practitioners' surveys, but insights on how procurement can profit from big data applications are very fragmented. Therefore, the following article portrays a conceptual framework for big data applications in the procurement function connecting different data sources, skilled teams, and big data analytics. Furthermore, a full array of existing and new use cases for procurement is derived.
Keywords: Big Data Analytics; Data Science; Procurement; Purchasing; Sourcing; Industry 4.0; Digitisation; ICT.
Precursors and Outcomes of Satisfaction in Seller-Customer Business Relationships: A Sales Perspective
by Nils M. Høgevold, Göran Svensson, Mercy Mpinganjira
Abstract: Do the same precursors and outcomes apply in business relationships when the relationships are seen from the seller's perspective as opposed to the customer's perspective? Many studies on relationships, particularly those on business relationships, deal mainly with the buyer's perspective. In this study, we take the seller's perspective and test whether the precursors (trust and commitment) and outcomes (specific assets, opportunism and formalisation) of satisfaction, which are tested and retested across multiple contexts and through time to buyer business relationships, also applies to seller business relationships. Data was gathered from a cross-industry sample of Norwegian companies. The questionnaires returned from 213 key sales informants were completed satisfactorily and were useable in this study, generating a valid response rate of 40.7%. Follow-up interviews with sales executives revealed practical consequences of satisfaction, specific assets, opportunism and formalisation. The lesson learned from the feedback is that acting in a way that builds trust benefits both seller and customer.
Keywords: Seller - buyer relationship; sales perspective; specific assets; opportunism; formalization; satisfaction.
Coping with rising Supply Chain Complexity: Conceptualizing a Supply Network Map Structure Model to address that challenge
by Antonia Kappel, Holger Schiele, Wolfgang Buchholz
Abstract: The complexity in supply networks is increasing and influences the competitive position of the focal company. Traditional approaches like supply chain mapping only show the focal company's relationships with suppliers and customers along the vertical supply chain, but are not capable to map any horizontal buyer-supplier relationships with other companies. Hence, this paper introduces a new supply network map structure model that extends the multi-tier view towards suppliers and customers along the vertical supply chain also to the complementors and competitors across the horizontal supply chain. Thus, the model enables the development of the existing supply chain mapping theory further into a holistic supply network mapping method. The model has been conceptualised with the help of 13 semi-structured interviews and is based on relevant models from the strategic management and the purchasing and supply management (PSM) literature. According to design science, it has been refined in several iterations.
Keywords: Supply network; Supply chain mapping; Supply chain complexity; Conceptual research; Theory development; Semi-structured interviews; Design Science.
Presenting employees' self-development behaviour pattern
by Azar Kaffashpoor, Gholamreza Malekzadeh, Ahmad Momeni, Alireza Khorakian
Abstract: The purpose of this article is to identify the components, causes and consequences of employee self-development behaviours in Razavi Khorasan, North Khorasan, and South Khorasan Gas Company. The present research is fundamental research and the population of the study is employees of Razavi Khorasan, North Khorasan, and South Khorasan Gas Company. The data were analysed by thematic analysis and the causes, components and consequences of the self-development behaviours of the employees were identified. Using semi-structured interviews, the self-developed behaviour patterns model was developed. Accordingly, the components of self-development behaviour include organisational commitment, self-awareness, self-efficacy, self-development, self-esteem, ability, flexibility, self-directed learning, resilience, and optimism and it is an effective individual, group, and organisational factor in enhancing or weakening such behaviours. Self-development behaviour has many advantages at an individual and organisational level. Some of the benefits of employee self-development behaviour include: increasing productivity, reducing organisational costs, increasing staffing ability, reducing organisational conflicts, providing a positive image of the organisation, responding to the environment, rewarding the client, increasing social capital, attracting efficient forces, creating a desirable organisational atmosphere, knowledge sharing, and organisational growth.
Keywords: Self-development Behaviour; Self-directed Behaviour; Self-empowerment; Human Resource Development.
Pricing Model for Deteriorating Items by Considering of Two Items
by Mohammad Mehdi Kazemi
Abstract: The main purpose of present study is to examine a three-level supply chain that comprises a manufacturer, major distributor and retailer in which two deteriorating items are manufactured. At the manufacturer level, production planning is studied. This production takes place in such a way that it can supply the needs of the wholesaler and, at the same time, prevent the increase in the rate of deteriorating of the manufactured items. At the wholesale level, warehousing management is considered in order to minimise the waste of items in the warehouse, in addition to estimating the amount of demand received by the retailer. At retail level, demand management is examined. In this paper, demand is assumed to be a linear function of price, and naturally with increasing prices, the demand decreases. The mathematical model obtained in this research is a nonlinear mathematical optimisation problem. The results of this research are generalisations of some of the mathematical models in the subject literature.
Keywords: Supply Chain; Deteriorating Item; Pricing; Production Management.
BARRIERS TO THE IMPLEMENTATION OF ENVIRONMENTALLY SUSTAINABLE PROCUREMENT IN PUBLIC UNIVERSITIES
by De-Graft Joe Opoku, Joshua Ayarkwa, Ama Amponsah Appiagyei, Kofi Agyekum
Abstract: Most public institutions are faced with numerous challenges in trying to implement environmentally sustainable procurement practices. This study examines barriers to successful implementation of environmentally sustainable procurement in public universities. Kwame Nkrumah University of Science and Technology (KNUST) was used as a case for the study. Semi-structured interviews with six procurement experts at KNUST procurement office was conducted. Data obtained was analysed using thematic template analysis. Findings from the study suggest that inconsistencies in decision making; centralised/decentralised decision making; difficulty in imposing change; difficulty dealing with government agencies; collusion among stakeholders; lack of planning; lack of budgetary allocation; and inadequate training of procurement professionals and suppliers are the eight key barriers that hinder the successful implementation of environmentally sustainable procurement in public universities. The findings should provide an enabling environment for measures to be put in place to successfully implement environmental sustainability in procurement activities.
Keywords: Environmental sustainability; sustainable procurement; public procurement; public universities.