An evaluation of vendor selection models from a Total Cost of Ownership perspective.

Many different vendor selection models have been published in the purchasing literature. However there has been no systematic approach to compare the relative efficiency of the systems. In this paper we propose to use the concept of Total Cost of Ownership as a basis for comparing vendor selection models. We illustrate the comparison with real life data set of the purchasing problem of ball bearings at Cockerill Sambre, a Belgian multinational company in the steel industry. Mathematical programming models outperform rating models and multiple item models generate better results than single item models from a Total Cost of Ownership perspective for this specific case study.Evaluation; Models; Selection;

The role of structural embeddedness in an IT outsourcing network

The design of governance to safeguard against a vendor's opportunistic behaviour is one of the critical issues in information technology outsourcing (ITO) since this behaviour causes cost escalation and service debasement. The roles of structural embeddedness underlying network governance have been gaining its importance as complementary or substitutable governance in ITO. Our research attempts to reveal how structural embeddedness can affect the decision-makings of clients and vendors and their resulting outcomes in an ITO network and how these effects are moderated by various ITO network structures according to outsourced IT services. An agent-based simulation and game-theoretic approach are adopted to build a simulation model to describe ITO networks with various structures and ITO transactions between clients and vendors. Finally, the future research directions are discussed

An evaluation of performance information procurement system (PIPS)

Since procurement is seen as crucial for project success, many\ud methods have been developed and papers written about this issue. A remarkable\ud contribution in this field comes from Dean Kashiwagi (Arizona State University,\ud USA) who underpins his support for the Performance Information Procurement\ud System (PiPS) with claims of high project performance and client satisfaction.\ud Kashiwagi’s explanation for PiPS’s effects is based upon a theoretical\ud framework that relates to staff members’ ability to deal appropriately with\ud information by making sound decisions based not just on implicit expectation\ud and tacit experience. This is not, however, a satisfactory explanation. This paper\ud provides an overview of New Institutional Economics perspectives which are\ud better able to explain the effects of PiPS. The linking of these theories to\ud innovative PiPS elements clears the path to effectively select and apply PiPS\ud elements within suitable projects in the Dutch construction industry. This will\ud enhance industry performance and is of interest to all stakeholders

Climate Change Reporting: A Resource Based Perspective

Kajian ini dilakukan untuk mengkaji tahap serta faktor yang mengalakkan laporan pemanasan global di antara syarikat-syarikat yang tersenarai di Bursa Malaysia. This study investigates the extent of climate change disclosure among Malaysian public listed companies

Risk Mitigation Of Outsourcing Manufacturing Process: A Study On The Semiconductor Manufacturing Organizations In Malaysia

Penggunaan perkhidmatan pihak ketiga daripada proses pembuatan semikonduktor menjadi sebahagian daripada strategi korporat sebuah organisasi yang didorong oleh kelebihan kos dan fleksibiliti dalam ketidakpastian. Outsourcing of semiconductor manufacturing process is becoming integral part of the corporate strategy of an organization which is driven by cost advantage and flexibility during uncertainty

A supplier selection strategy within the Malaysian telecommunications industry

The telecommunication industry in Malaysia has grown rapidly over the last 15 years, with effective supply chain management becoming increasing important within the sector. A multitude of providers and part owned Malaysian government companies, vendors and suppliers are involved in generating and creating value-adding products and services within this sector (across wireless, wireline, broadband business and consumer lines of business). This paper describes key challenges facing a major telecoms service provider in Malaysia with regards to drivers involved in the overall procurement and supplier selection with regards to components of performance management, decision-making, selection techniques, quality and cost management, procurement policy and procurement ethics. This paper further focuses on defining and detailing research currently being undertaken to develop a framework for identifying supplier selection drivers that are inherent within the sector and suggests a research approach to investigate and develop strategies for supplier selection for the telecommunications industry in Malaysia

Improving the efficiency of the purchasing process using total cost of ownership information : The case of heating electrodes at Cockerill Sambre S.A.

Improving the efficiency of the purchasing process provides important opportunities to increase a firm's profitability. In this paper we introduce a mathematical programming model that uses total cost of ownership information to simultaneously select suppliers and determine order quantities over a multi-period time horizon. The total cost of ownership quantifies all costs associated with the purchasing process and is based on the activities and cost drivers determined by an activity based costing system. Our approach is motivated by the purchasing problem of heating electrodes at Cockerill Sambre S.A. a Belgian multinational steel producer. In this case quality issues account for more than 70 % of the total cost of ownership making the quality of a supplier a critical success factor in the vendor selection process.Efficiency; Heating; Processes; Purchasing;