Contract Development Strategy in Reducing the Risk with House of Risk Method in Pt. KLO (Case Study Oil&Gas Company In Indonesia)

Contract development of procurement process at Oil Company as PT. KLO should follows many regulations of contract development. At the other side, there are some near misses/failure contracts because of unable to anticipate the risk earlier. There is no research to categorize the risk order and strategy to mitigate the risk. This research aim is to identify risk events, identify risk agents, and mitigation strategy of contract development process with House of Risk (HOR) method. The core of supply chain process to make contract already analyzed to identify the risk potential and effect resulted. Risk agents and related probabilities also already analyzed. Aggregate of risk potential was defined for each risk agents to know the damage level. This method was applied at department of contract & buying of PT. KLO Company, one biggest operator of oil and gas exploration in Indonesia through cooperation with Oil and Gas institution of Indonesia Republic (SKK Migas). The research findings identify thirty four (34) risk agents and twelve (12) the main mitigation actions that significantly effective to reduce the contract making risks in PT. KLO Keywords: contract making, risk cause, House of Risk, regulation of goods procuremen

Optimizing strategic sourcing in the healthcare supply chain with consideration of physician preference and vendor scorecards

This research focuses on the design of a procurement model for expensive medical supplies in a healthcare supply chain. A deterministic optimization model generates recommendations for optimal purchases of products in a given planning period. The model combines common concepts of supply chain procurement such as leveraging tiered pricing, ensuring supply base diversity with phenomena unique to healthcare supply chain such as consideration of physician preference for products. The deterministic optimization model minimizes total spend over a chosen planning period with consideration of four key decision parameters: Physician preference requirements (which are imposed as rules on product substitutability), Upper limits on vendor market share to ensure a suitably diverse supply base Vendors’ performance scores to impose standards for product pricing, quality, service, etc. Quantity discount rebate parameters for bulk purchasing to help contain medical costs The optimization model reveals the extent to which higher product substitutability and lower supply base diversity may help hospitals reduce total procurement costs. Experiments with the optimization model also reveal the potential consequences of rater biases in vendor scorecards on procurement cost. The various parameter combinations listed above may be used in negotiating contracts for better pricing. In summary, this research addresses questions pertinent to healthcare supply chains concerning the possible cost of physician preference for products, the impact of subjective scorecards on procurement costs, the effect of planning period on procurement plans, and the cost of vendor diversity

Social sustainable supplier evaluation and selection: a group decision-support approach

Organisational and managerial decisions are influenced by corporate sustainability pressures. Organisations need to consider economic, environmental and social sustainability dimensions in their decisions to become sustainable. Supply chain decisions play a distinct and critical role in organisational good and service outputs sustainability. Sustainable supplier selection influences the supply chain sustainability allowing many organisations to build competitive advantage. Within this context, the social sustainability dimension has received relatively minor investigation; with emphasis typically on economic and environmental sustainability. Neglecting social sustainability can have serious repercussions for organisational supply chains. This study proposes a social sustainability attribute decision framework to evaluate and select socially sustainable suppliers. A grey-based multi-criteria decision-support tool composed of the ‘best-worst method’ (BWM) and TODIM (TOmada de Decisão Interativa e Multicritério – in Portuguese ‘Interactive and Multicriteria Decision Making’) is introduced. A grey-BWM approach is used to determine social sustainability attribute weights, and a grey-TODIM method is utilised to rank suppliers. This process is completed in a group decision setting. A case study of an Iranian manufacturing company is used to exemplify the applicability and suitability of the proposed social sustainability decision framework. Managerial implications, limitations, and future research directions are introduced after the application of the model

Supplier Assessment and Order Allocation Determination for Fast Moving Consumer Goods

Supply chain management in manufacturing has been widely discussed by researchers and industrial engineers due to complexity of activities. One of the supply chain activities is supplier selection. Supplier selection has involved in maintaining the smoothness of process production, the dependency between suppliers has becomes a serious concern for company. This study focuses on the supplier selection problem to obtain the best supplier for Fast Moving Consumer Goods (FMCG) Company. The criteria of supplier selections for (FMCG) company were introduced. The criteria in supplier evaluations are limited to quality, price, payment term, quantity accuracy, on time accuracy, response of supplier, flexibility of supplier and completeness of document. The weights of importance level for each criteria is processed by using Analytic Hierarchy Process (AHP) approach. In obtaining information on supplier overall performance, the weights of importance level is multiplied with actual supplier score. As the result, the score of overall supplier performance could help decision maker in deciding the amount of allocation order that should be distributed for each supplier

The role of e-procurement in purchasing management

This exposition summarises research published in several academic articles, in order to meet the requirements of PhD by publication. The focus of the work is on the role of electronic procurement in management of the purchasing function. From the late 1990s a number of independent e-procurement mechanisms were launched which offered potential benefits such as increased order accuracy, transaction efficiency and greater integration between trading partners. At the outset of this programme of research, e-procurement was therefore an emerging phenomenon with little academic research and presented an opportunity to investigate a largely unexplored area. Edmondson and McManus (2007) suggest that for nascent, as opposed to mature areas of research, where few formal constructs or measures exist, an exploratory, qualitative approach is required. This research followed such an approach through the use of case studies, involving observation, participation and interviews with key organisational actors. Each paper makes use of several cases in order to compare and contrast results from different organisations and to draw conclusions from multi-case analysis. The published articles focus on the impact of core applications within e-procurement, including online reverse auctions, electronic marketplaces, online catalogue sites, and buying systems covering the ‘requisition to pay’ cycle. The findings from the papers address a number of core themes in purchasing management. In considering buyer-supplier relationships, it was observed that such dyads are driven by traditional buyer negotiation factors such as segmentation, power and price and that use of eprocurement applications tended to enforce such traditional behaviours. In relation to the potential for integration, the study found that integration between firms was barely affected, as the concept of integration was neither an objective nor a business case driver for e-procurement adoption. This situation reflects the finding that procurement managers pursue functional targets rather than supply chain-level objectives. However, other significant effects from e-procurement adoption were noted such as the tendency by buyers to reduce supplier numbers and a move to re-engineer the procurement function in buying firms, through automating transactional processes. The research finds that e-procurement does not have a deterministic impact on purchasing management, and that it acts as an enabler to more effective management of the function though the way its different mechanisms are deployed. The exposition establishes that e-procurement is used in relation to supply conditions which are characterised by both ‘markets’ and ‘hierarchies’, but that it is the predefined purchasing strategy of the firm, rather than available technology solutions, which determines when markets and hierarchies are used. Additionally, an original model is introduced, focusing on developing an e-procurement policy which can support strategic purchasing goals. This model extrapolates findings from stages in the research, and marries together elements from various papers and frameworks therein, to produce some guidelines for adoption of this technology

Identification of Options and Policy Instruments for the Internalisation of External Costs of Electricity Generation. Dissemination of External Costs of Electricity Supply Making Electricity External Costs Known to Policy-Makers MAXIMA

In the present paper, after reviewing the results of the ExternE project and its follow-up stages in the estimation of the external costs of electricity production, we look at the policy instruments for the internalisation of such costs. Emphasis is given to subsidies, such as feed-in tariffs, competitive bidding processes and tradable green certificates to stimulate the use of renewables in the production of electricity. When policy-makers are asked to choose the instrument(s) to internalise the externalities in the electricity production, they have to find a solution that gives the best outcome in terms of efficiency, cost minimisation, impact on the job market, security of energy supply, equity of the instrument, technological innovation, certainty of the level of the internalisation, and feasibility. The choice of the instrument will require some trade-offs among these criteria. Conjoint choice analysis can help in investigating how stakeholders and policy makers trade off the criteria when choosing a policy for the internalisation of the externalities. In this paper we present the first results of a questionnaire that employs conjoint choice questions to find out how policy makers and stakeholders of the electricity market trade off some socio-economic aspects in the selection of the policy instruments for the internalisation of the externalities. The results of this first set of interviews will be useful for further research.Policy instruments, ExternE, External costs, Electricity, Conjoint choice analysis

A conceptual framework for the adoption and implementation of online reverse auctions in South Africa

Digital technologies enable a deep rationalisation in the purchase of supplies between organisations, with positive cost-reducing spin-offs on wise e-procurements adoptions with savings of up to an 8-12% average to the purchases total. To this effect, web-based systems, online reverse auctions (ORAs) emerge as the most cost-efficient options, from the goods and services supply chain, as well as administration and governance perspective. ORAs are beginning to replace traditional paper-based manual procurement transactions and face to face negotiations effectively. Problem and Purpose – The project undertook to explore the level of ORAs adoption and usage by local organisations. The aim was to understand and explain the status-quo, with a goal of devising a facilitative framework for improved adoptions and use of ORAs in the South African public and private business contexts. Design/methodology/approach – The main research question How can the adoption (including implementation and use) of Online Reverse Auctions (ORAs) be improved among the private and public business enterprises in South Africa? To address this, a mixed methods approach was adopted, using the survey and interviews on selected 100 procurement professionals, executives, project managers and procurement specialists and practitioners. Findings – The study has found that ORAs should be implemented in South Africa when all suppliers are empowered to participate – the basic reasons being that they would save costs, and technology advancement simplifies and standardise processes. Furthermore, the effect of perceptions on online reverse auctions on adoption, implementation and purpose of ORA and research findings provided possible ways to improve the tool to be effective in the context of developing countries like South Africa Furthermore, findings also call for improved implementation of ORAs in South Africa. Research limitations/implications – Regulations around the procurement and SCM function in both the private and the public sector (though the private sector regulations are not as stringent and the public sector) contributed significantly on the progress and the availability of information from participants. Originality/value –The current existing models, frameworks and online reverse auction tools are mainly supporting and designed for established, mature and developed markets. It is required that appropriate tools and processes to conduct and implement online reverse auctions are necessary. Hence the newly proposed online reverse auctions conceptual framework.Ubuchwepheshe bedijithali buvumela ukulinganisa okujulile, ekuthengeni izinto phakathi kwezinhlangano, ngemiphumela emihle enciphisa izindleko ekutholweni kokuthengwa okuku-inthanethi okuhlakaniphile; ikakhulukazi, ekongeni okungaba khona okulinganiselwa ku-8% kuya ku-12% kwenani eliphelele lokuthenga. Njengezinhlelo ezisekelwe kusizindalwazi, ukuqhudelana kwabahlinzeki ku-inthanethi (ama-ORA) kuvela njengokunike amandla okonga imali, kokubili kusukela kuchungechunge lokuhlinzeka, imibono yokuphatha neyokubusa. Ngenxa yalesi sizathu, ama-ORA aseqalile ukufaka esikhundleni sezingxoxo zokuthengwa kwempahla ezisekelwe ephepheni lendabuko kanye nobuso nobuso emisebenzini yesimanjemanje yochungechunge lokuhlinzeka ngempahla kunqubo yokucabanga phambili yeNguqoko Yezimboni yesine (4IR) esekelwe ohlelweni lokuhlinzeka ngempahla emhlabeni wokuncintisana. Akumangalisi-ke ukuthi abamukeli balobu buchwepheshe obusha babonakala bebambe iqhaza ekuqhudelaneni nabangebona abamukeli emnothweni womhlaba wonke, nokuncintisana ngokwandayo. Inkinga nenjongo - Ngokusebenzisa inzuzo yokwengeza inani lezinhlelo ezizenzakalelayo ezinqubeni zokuthengwa kwempahla, umbhali wale phrojekthi wayefuna ukuqonda izinga lokwamukelwa nokusetshenziswa kwama-ORA yizinhlangano zendawo eNingizimu Afrika. Inhloso bekuwukuchaza isimo sezwe samanje. Umgomo ekugcineni kwaba ukusungula uhlaka olusizayo lokuthuthukiswa kokutholwa kanye nokusetshenziswa kwama-ORA ezimeni zamabhizinisi zikahulumeni nezizimele eNingizimu Afrika. Ukwenza/indlela yokwenza/indlela yokusebenza – Kule nqubo, kwaphakanyiswa umbuzo wocwaningo olandelayo: “Kungathuthukiswa kanjani ukwamukelwa (okuhlanganisa nokusebenza kanye nokusetshenziswa) kokuqhudelana kwabahlinzeki ku-inthanethi (ama-ORA) phakathi kwamabhizinisi azimele kanye namabhizinisi kahulumeni eNingizimu Afrika?” Ekufuneni izimpendulo, kwasetshenziswa izindlela ezixubile. Izinhlelo ze-ORA ziyingxenye yobuchwepheshe obusha lapho ukuhlaziya kwawo kungenziwa kangcono ngemibono yokwamukela ubuchwepheshe. Isifanekiso sokwamukela sobuchwepheshe (i-TAM) kanye nemibono ehlobene ngaleyo ndlela yasetshenziswa yomibili njengezingalizi zokuqoqo ukukhanya komqondo nokuhlaziya ophenyweni. Ngokwenqubo, inhlolovo kanye namasu okuxoxisana asetshenziswa ukuqoqa imininingwane yochwepheshe abakhethiwe abayi-100 bokuthenga, abaphathi, abaphathi bamaphrojekthi kanye nochwepheshe bokuthengwa kwempahla kanye nabasebenzi ezimbonini ezahlukahlukene zonkana zikahulumeni nezizimele. Okutholakele kukhomba igebe mayelana nokuqwashisa kanye nokusebenza kwezinhlaka zokwamukela nokusebenzisa ngempumelelo ama-ORA ezimbonini zikahulumeni nezizimele eNingizimu Afrika. Ukunika amandla bonke ababambiqhaza mayelana nokuqwashisa nekhono, ngakho-ke kuyaphakanyiswa kulo mbhalo wobuhlakani wokuthola iziqu. Ukuphuthuma kokuthuthukisa ubuchwepheshe be-ORA kubabambiqhaza abanenselelo yokuncintisana esimeni sezwe elisathuthuka kuyaphakanyiswa. Njengendlela yenzuzo eqenjini lephrojekthi ekuqaleni kokuthuthuka kwayo locwaningo, uhlaka oluvumayo lokusiza ukubamba iqhaza okunjalo (ukwamukelwa kanye nokusetshenziswa) kuma-ORAs ngaleyo ndlela kuhlongoziwe kokutholakele. Imikhawulo yocwaningo/imithelela - Imininingwane kulolu phenyo itholwe kusampula esikhundleni sesibalo sabantu esiphelele semikhakha kahulumeni nezimele, okusho ukuthi imibono ehlukile evela ezimeni eziyinqaba ihlala ingaqondakali, okunikeza ithuba lokucwaninga okwengeziwe ngesihloko. Okwangempela/ukubaluleka - Izifanekiso ezikhona, izinhlaka namathuluzi kubonakala kuvumelana nezimo zezimakethe ezimisiwe, ezivuthiwe nezithuthukile. Ngakho-ke amathuluzi nezinqubo ezifanele kufanele kuthuthukiswe njengokuphuthumayo ukuze kuqhutshwe futhi kusetshenziswe ukuqhudelana kwabahlinzeki ku-inthanethi ukuze kunikezwe izixazululo ezikhona kuzo zonke izindawo zokuthuthukiswa komnotho. Kungale ndlela ephusile lapho kuphakanyiswa uhlaka lomqondo olusha oluhlongozwayo ekuqhudelaneni kwabahlinzeki ku-inthanethi kulokho okutholwe yile phrojekthi yocwaningo.Didiriswa tsa theknolotsi di nolofatsa lebaka le legolo la thekisetsano ya dithoto magareng ga dikgwebo, ka dikhamphani tseo di fokotsago ditshenyagelo ka go somisa kgwebisano ye bohlale ya inthaneteng; kudukudu, ka dipolokelo tseo di akanyetswago go fihla go 8% go ya go 12% ya palomoka ya ditheko. Go swana le mananeo a inthaneteng, difantisi tsa ribese tsa inthaneteng (diORA) (mo barekisi ba phenkgisanela go reka go morekisi o tee) di laeditse go fokotsa ditshenyagalelo, go tswa go dikgopolo tsa tshepediso ya kabo, taolo le puso. Ka lebaka le, diORA di thomile go soma legatong la tsela ya tlwaelo ya ditherisano le dithekisetsano ka sebele, ka go somisa mokgwa wa sebjalebjale wo o nago le ponelopele wo o theilwego godimo ga tshepediso ya kabo mo nakong ya Rebolusene ya bo4 ya Intasteri (4IR) lefaseng la kgwebo la diphadisano. Ka gona ga go makatse ge basomisi ba theknolotsi ye e mpsha ba bonala ba le maemong a kaone go fetisa dikgwebo tseo di sa somisego mokgwa wo go kgwebisano ya lefase, le ikonoming yeo e golago ka lebelo. Bothata le morero – Ka go somisa tshedimoso ya tlaleletso ya boleng ka go somisa mananeo a khomphutha go mekgwa ya kgwebisano, mongwadi wa protseke ye o be a nyaka go lekola maemo le tshomiso ya diORA ka mekgatlo ya ka Afrika Borwa. Maikemisetso e be e le go hlalosa maemo a bjale. Tebanyo mafelelong e be e le go hlama foreimeweke ya nolofatso ya tshomiso le tiriso ye e kaonafaditswego ya diORA ka maemong a dikgwebo tsa setshaba le tsa phoraebete ka Afrika Borwa. Tlhamo/mokgwa wa nyakisiso/mokgwa – Mo go tshepediso ye, go botsisitswe potsiso ya nyakisiso ye e latelago: “Naa tiriso (go akaretswa phethagatso le tshomiso) ya difantisi tsa ribese ya inthaneteng (ORA) di ka kaonafatswa bjang go dikgwebo tsa phoraebete le tsa mmuso ka Afrika Borwa?” Ka go fihlelela dikarabo, go somisitswe mokgwa wo o kopantswego. Mananeo a ORA ke karolo ya mananeo a maswa gomme a ka sekasekwa ga bonolo ka go somisa diteori tsa mananeo a theknolotsi. Mmotlolo wa tiriso ya theknolotsi (TAM) le diteori tse di amanago le wona di somisitswe bjalo ka dilentshe tsa kgopolo le tsa tshekatsheko ya nyakisiso. Go somisitswe mokgwa wa nyakisiso ya tekolonyakisiso le dipoledisano go kgoboketsa datha go tswa go batseakarolo bao ba kgethilwego ba ditsebi tse 100, bareki ba thoto, bahlankediphethisi, balaodi ba diprotseke le ditsebi tsa theko le basomi ka diintastering tsa go fapana go ralala le mafapha a mmuso le a phoraebete. Dikutollo di laetsa tlhaelelo ya temogo le ka diforeimeweke tsa phethagatso go somisa le go phethagatsa diORA ka mafapheng a mmuso le a phoraebete ka Afrika Borwa. Go fa batseakarolo ka moka tsebo le bokgoni, go sisintswe ka thesising ye. Boitlhaganelo bja go kaonafatsa theknolotsi ya ORA go batseakarolo bao ba hlokago bokgoni go naga ye e hlabologago go a sisinywa. Bjalo ka tsela ya go tseakarolo go nyakisiso ya thuto e, dikutollo tsa nyakisiso ye di sisinya foreimeweke ye e kgontshago go nolofatsa tshomiso (tiriso le tshomiso) ya diORA. Dikiletso/Diphihlelelo tsa nyakisiso – Datha ya nyakisiso ye e fihleletswe ka mokgwa wa go sampola e sego ka go somisa basomi ba mafapha a mmuso le a phoraebete ka botlalo, se se hlalosa gore tshedimoso ya moswananosi ga se e fihlelelwe, gomme se se laetsa hlokego ya dinyakisiso tse dingwe thutong ye. Boithomelo/boleng – Mmotlolo ye e lego gona, diforeimeweke le didiriswa di laetsa di soma gabotse go maemo ao a theilwego dikgwebong tseo tse kgolo. Didiriswa le mekgwa ya ditshepetso e swanetse go kaonafatswa ka boitlhaganelo go laola le go phethagatsa difantisi tsa ribese tsa inthaneteng go tlisa ditharollo go tlhabollo ya ekonomi lefase ka bophara. Ka go realo diphihlelelo tsa protseke ya nyakisiso ye di sisinya foreimeweke ye mpsha ya difantisi tsa ribese tsa inthaneteng.Graduate School of Business LeadershipD.B.L