Choosing an organisational form: the case of collaborative procurement initiatives

This paper deals with different organisational forms of collaborative procurement and provides insight into when to use which form. Different forms from the literature are compared with empirical examples to give an overview of forms, which are then described in terms of strategy, skills and organisation. Whilst acknowledging variations, the paper distinguishes between two main forms: virtual networks and third-party organisations. Using empirical data and four theoretical perspectives (transaction cost economics, resource-based view, contingency theory, agency theory), the paper reflects on when which form can be used and presents an overall framework to help choose an organisational for

Rethinking health sector procurement as developmental linkages in East Africa

Health care forms a large economic sector in all countries, and procurement of medicines and other essential commodities necessarily creates economic linkages between a country's health sector and local and international industrial development. These procurement processes may be positive or negative in their effects on populations' access to appropriate treatment and on local industrial development, yet procurement in low and middle income countries (LMICs) remains under-studied: generally analysed, when addressed at all, as a public sector technical and organisational challenge rather than a social and economic element of health system governance shaping its links to the wider economy. This article uses fieldwork in Tanzania and Kenya in 2012–15 to analyse procurement of essential medicines and supplies as a governance process for the health system and its industrial links, drawing on aspects of global value chain theory. We describe procurement work processes as experienced by front line staff in public, faith-based and private sectors, linking these experiences to wholesale funding sources and purchasing practices, and examining their implications for medicines access and for local industrial development within these East African countries. We show that in a context of poor access to reliable medicines, extensive reliance on private medicines purchase, and increasing globalisation of procurement systems, domestic linkages between health and industrial sectors have been weakened, especially in Tanzania. We argue in consequence for a more developmental perspective on health sector procurement design, including closer policy attention to strengthening vertical and horizontal relational working within local health-industry value chains, in the interests of both wider access to treatment and improved industrial development in Africa

Evaluating eREVERSE auctions (EeRA): A research note

This eGISE network paper seeks to evaluate issues relating to the implementation of electronic reverse auctions (eRA) within local government procurement processes. The adoption of an eRA invites pre-qualified suppliers to compete with each other for a specified good or service. Consequently, there is a unique opportunity for the buyer to receive a reduced cost through the successful bidder. However, the literature identifies a number of adverse effects within these arrangements depending upon the nature of the buyer/supplier relationship. The objectives of the research involves identifying a set of business scenarios to demonstrate the impact of different eRA strategies in this respect. This will be achieved through a structured case analysis approach to enable qualitative data to be modelled through a visual toolset simulation. It is believed the outcome of the investigation will provide valuable insights into the complexities associated with the eProcurement process

Improving market intelligence for organic horticulture in Wales

The organic market in the UK reached a value of £1.015 billion during the 2002/2003 financial year. The market for organic food and drink in Wales and the surrounding counties is estimated to account for 6.3 per cent of this, a total of £64 million. Assuming the proportion of sales of organic fruit and vegetables in Wales is the same as the UK as a whole then the market for organic fruit and vegetables in Wales can be valued at £20.5 million for the financial year 2002/03. The area of fully organic horticultural land in Wales in April 2003 was 513 hectares with 102 producers involved in organic fruit and vegetable production. Of these producers, over 60 per cent were mixed farms encompassing livestock and/or cereals alongside horticulture. The estimated farm-gate value of Welsh produced organic fruit and vegetables was £1.8 million, approaching 5 per cent of the total UK farm-gate value of £43.96 million. Organic horticultural production accounts for a significant proportion - 10 per cent - of the total horticultural land in Wales. In comparison, organic horticulture in the UK as a whole accounts for just 4 per cent of the total horticultural land. Interviews with Welsh growers identified a number of key challenges facing them including market access, lack of producer co-operation, increased competition (particularly from within the UK) and availability of labour. At the beginning of 2003, 103 licensed organic processing operations were operating in Wales with approximately one-third handling fruit and vegetables. The main constraints to increasing the utilisation of domestic produce were identified as continuity, quality, accessibility and reliability of supply. Key recommendations to help overcome many of the challenges identified are included in Chapter 6 - Conclusions and Recommendations. Fruit and vegetables are a key entry point for consumers beginning to buy organic food. Welsh consumers are less ‘put-off’ by the price of organic food than consumers across the UK as a whole. Supporting the local farmers is particularly important to the Welsh consumer, with 35 per cent of the Welsh organic buying public stating that it was important to support local farmers, compared to 16 per cent in the UK overall

Purchasing Organization and Design: A Literature Review

This paper presents the results of a comprehensive literature review of the organization of purchasing covering the period from 1967 to 2009. The review provides a structured overview of prior research topics and findings and identifies gaps in the existing literature that may be addressed in future research. The intention of the review is to a) synthesize prior research, b) provide researchers with a structural framework on which future research on the organization of purchasing may be oriented, and c) suggest promising areas for future research.purchasing, supply, procurement, organization, institutional structure, structure, institution, design, performance, literature review

Supply Chain Engagement Through Relationship Management?

Many studies carried out in relation to construction procurement methods have revealed evidence that there needs to be a change of culture and attitude in the construction industry, moving away from traditional adversarial relationships to cooperative and collaborative relationships. At the same time there is also increasing concern and discussion on alternative procurement methods, involving a movement away from traditional procurement systems. Relational contracting approaches, such as relationship management, are business strategies whereby client, commercial participants' and stakeholders' objectives are aligned. This paper reviews a range of relationship management project case studies undertaken between public and private organisations in Queensland, Australia and reports on the critical factors identified that influence the success of relationship management projects. The research takes place within the context of the supply chain and reflects attempts by a government agency to engage the supply chain through relationship management approaches. The advantages accruing from engagement include community benefit, added value and innovation. Relationship management is a system that provides a collaborative environment and a framework for all participants to adapt their behaviour to project objectives and allows for engagement of those subcontractors and suppliers 'down the supply chain'. It is about open communication, sharing resources and experiences, exposing the 'hidden' risks in the project for the benefit of all participants. The case studies suggest that leadership has a strong influence on the relationship management climate which needs to be facilitated and nurtured. Commitment and action by the senior management (and, so, parent organisations) can have a strong impact on the team and relationship management culture, indicating relationship management has a high chance of failure when there is inadequate support from top management. Like all relational contracting approaches, trust between relationship management partners is important. The authors conclude that without a positive approach to relationship management a sustainable industry and continuous improvement are not possible. So, the authors postulate that a 'sustainable supply chain' is essentially tautological without the existence of a clear relational vision that leads to both soft and hard infrastructure to assist and inform decision making and encourage relationship building. An example of this is discussed at the end of the paper

Web Based Organizing and the Management of Human Resources

The paper focuses on the consequences of web-based business-to-business transactions in medium and large old economy companies in particular and discusses the implications for HRM and HR professionals. Medium and large old economy companies can be involved in transactions within the new economy in different ways. First of all the paper gives an overview of the striking characteristics that distinguish web-based transactions from more traditional transactions. The paper continues with an overview of the different ways in which old economy companies are attempting to integrate elements of web-based organizing into their current business and the implications of it for human resources management. Three different ways of integration are distinguished:-Seeing the Net as an extension of normal market channels for buying and selling.-Using the Net to expand and improve current co-makership relationships amongst key suppliers (section 4).-Totally re-thinking business models before deciding on e-commerce strategy and practice, which implies desegregation and organizational revolution. Each of these areas will be highlighted and possible implications for human resources management and HR managers considered.human resource management;business to business transactions;human resource managers;web-based organizing

Performance-Based Specifications: Exploring When They Work and Why

There is extensive research and attention on innovation and sustainable public procurement (SPP) in the European Union at present, with the 2014 revision of the Procurement Directives, the Innovation Union strategy and other European Union policy initiatives. This report seeks to contribute to this discussion through the investigation of the use of performance based specifications (PBSs) in public procurement in the European Union and the United States. The report outlines the benefits and limitations of the use of PBSs, even in the most "progressive" public procurement environments, such as the Netherlands, particularly around their ability to support sustainable development goals and deliver environmental benefits for a procuring authority, such as energy and resource efficiency. Additionally, this report aims to identify the sectors in which the enabling conditions for the successful use of PBSs in public procurement are in place and to understand what policies and regulations are needed to promote the use of PBSs in public tenders and public procurement framework agreements

Value for money in schools: Report for the Audit Office

In January 2008, the Audit Commission appointed FGS, in association with the University of Southampton, to carry out a review in relation to Value for Money (VfM) in schools. Examining VfM in schools requires a detailed consideration of both the inputs and the outputs relating to the education system; in other words, the costs and benefits associated with schools. In this context, inputs are relatively straightforward to express: staffing typically represents around 70% of school costs, with the remainder comprising of operating and maintenance expenditure. However, defining the outputs from schools (pupil outcomes) is an altogether more complex task. The most tangible measure of pupil outcomes is the results they achieve in examinations. Even so, both in the UK and overseas, it is widely recognised that pupils’ levels of achievement are influenced by a range of factors other than the quality of schooling they receive (for example, their family background or their track record of achievement at earlier stages of their education). Put simply, pupils’ current levels of attainment are likely to be enhanced if they have a high level of prior educational attainment, and therefore schools may make a less significant contribution to student outcomes. In assessing the value for money which schools deliver through their day-to-day activities, it is therefore necessary to take account of the progress pupils make in their time at school (or ‘value added’ by the school), rather than just their levels of attainment, which are influenced by a host of factors other than schooling. <br/

The role of reference marketing in capital buying decisions: evidence from the Portugueses electric power industry.

Doutoramento em GestãoIn marketing reference processes, existing customers act as advocates for firms. With their enthusiasm, they provide testimonials, receive visits from potential customers, and contribute information on adopted solutions and their performance. This activity is highly valuable for firms insofar as it helps them to acquire strategic assets that allow for profitable marketing action, either by increasing credibility and reputation or by reducing the perceived risks associated with the purchasing of services or products from a particular supplier. In this study, I suggest that the literature on organizational buying behaviour lacks the empirical input necessary for a theory of customer referencing. In particular, I argue that studies of customer referencing practice do not give sufficient attention to the potential customer’s point of view. Instead, empirical research has favoured the supplier as its unit of analysis and has ignored the other two constituents of the reference triad: the reference customer and the potential customer. Empirical work featuring the potential customer as its unit of observation is therefore a promising area of research for those who wish to gain a deeper understanding of customer referencing and its influence on the buying behaviour of industrial firms. This study aims to contribute to filling this gap by considering the following question: “How does reference marketing influence capital buying decisions?” I respond to this question by collecting data from firms in the Portuguese energy industry, with a view to creating a multiple case study. This empirical work, which adopts a critical realist approach, grounds a new theoretical model for describing the causal mechanism that connects reference marketing to its outcomes. By identifying this causal mechanism, I aim to deepen our understanding of the role played by customer referencing in capital equipment buying decisions. In addition, this research identifies a new form of reference practice and two new referencing effects not yet described in the literature on referencing.No marketing de referências, os clientes de uma empresa agem como seus embaixadores. Com o seu entusiasmo, fornecem depoimentos e testemunhos, recebem visitas de potenciais clientes e contribuem com informações sobre as características das soluções adoptadas e do seu desempenho. Esta actividade é muito valiosa para as empresas, pois ajuda-as a adquirir activos estratégicos que permitem uma acção de marketing rentável, quer através do aumento da credibilidade e reputação, como reduzindo os riscos associados à compra de produtos ou serviços de um fornecedor. Neste estudo sugiro que a literatura sobre o comportamento de compra organizacional tem falta do input empírico necessário para uma teoria de referenciação de clientes. Em particular, argumento que os estudos da prática da gestão de referenciação de clientes não dão a devida atenção ao ponto de vista que versa o potencial cliente. Em vez disso, a pesquisa empírica tem favorecido o fornecedor como a sua unidade de análise e ignorado os outros dois componentes da tríade: o cliente de referência e o potencial cliente. O trabalho empírico que contempla o potencial cliente como sua unidade de observação é, portanto, uma área de pesquisa promissora para aqueles que desejam obter uma compreensão mais profunda da referenciação de clientes e da sua influência sobre o comportamento de compra de empresas industriais. Este estudo pretende contribuir para o preenchimento desta lacuna, considerando a seguinte pergunta: "Como é que o marketing de referências de clientes influencia as decisões de compra de bens de capital?" Eu procuro responder a esta pergunta através da recolha de dados de empresas que estão presentes na indústria Portuguesa de energia, com vista à criação de um caso de estudo múltiplo. Este trabalho empírico, que adopta uma abordagem assente no realismo crítico, fundamenta um novo modelo teórico para descrever o mecanismo causal entre o marketing de referências de clientes e os seus resultados. A identificação deste mecanismo causal aprofunda a compreensão do papel desempenhado pela referenciação de clientes nas decisões de compra de bens de capital. Além disso, esta pesquisa identifica uma nova prática de referenciação de clientes e dois novos efeitos da referenciação de clientes que ainda não foram descritos na literatura sobre referenciação de clientes.N/