A New Model for the Digital Transformation of the Strategic Procurement Function

The purpose of this chapter is to illustrate the application of advanced data analytics in the domain of strategic procurement and its effects on processes, people, and on the procurement business model itself. Advanced data analytics are generally accepted as being one of the key enablers for organisations to build their capabilities to adapt quickly and navigate through volatile business circumstances successfully. Strategic procurement is in a pivotal position in a network of external suppliers and internal stakeholders, and thus ideally positioned to benefit from the introduction of advanced data analytics. However, to date, the application of these technologies has been limited, and clear evidence of benefits delivery is yet to be demonstrated. This chapter draws upon research results from a detailed case study in the aviation industry to assess the benefits of advanced data analytics in the strategic procurement function and puts forward a maturity model of relevance to both researchers and procurement professionals.

Strategic Procurement Negotiation

The challenges facing procurement managers across industries and public services are quite important. Businesses need to take care of the bottom line while public services need to manage tight budgets. This is aggravated by difficult economic environments such as the one that has come with COVID-19. Reducing procurement costs means less funds and working capital. Such is achieved by means of adequate negotiation processes. Technology procurement is a field with long acquisition lifecycles, where negotiations span over considerable periods of time, and where the features of technology may impact negotiations, including the technology inherent obsolescence speed. Such negotiations occur in an environment where demanding technical requirements abound alongside economic rationality and where negotiations are conducted by teams of managers and engineers, addressing the distinct dimensions. An approach to technology procurement negotiation is presented with viewpoints for reflection on how procurement and negotiations shall be addressed for technology procurement purposes.

Aggregated space combat modeling

The use of aggregated combat modeling in the cislunar environment has been demonstrated to inform acquisition decisions for the United States Space Force (USSF). First, the cislunar space is hypothesized as a future strategic conflict environment. As such, Lanchester, Lotka–Volterra, and Brackney models could be appropriate to describe such conflict. All models encompass a system of differential equations which parametrically capture the dynamics between friendly and hostile forces. While the Brackney model was constructed to explain two-dimensional land battle, this article adapts it for the respective three-dimensional space domain and applies it to strategic procurement. The analysis demonstrates the pre-eminence of Space Domain Awareness (SDA) in certain contexts while recognizing conditions in which spacecraft survivability holds greater importance.

Strategic Procurement Planning: Guidance Note on Procurement

This guidance note aims to assist borrowers in developing a procurement strategy and procurement plan for projects financed in whole or in part by an ADB loan or grant, or by ADB-administered funds. Effective and strategic procurement planning helps ensure that fit-for-purpose procurement approaches are developed to achieve value for money and the project’s development objectives. The note enables borrowers to take a flexible approach to developing a procurement strategy and procurement plan, applying tools and techniques widely used across public and private sector organizations to provide the necessary intelligence to make sound procurement decisions.

Strategic procurement collaboration for the common good: private and public procurement relationship duringa pandemic

Purpose This study aims to highlight and validate the importance of strategic procurement and its value to both public and private firms. This study discusses a collaborative private-public partnership (PPP), supply chain advisory committee (SCAC), established during the coronavirus (COVID-19) pandemic to acquire personal protective equipment (PPE) and other critical supplies for a donation center in Toledo, Ohio, USA. This center serves the community and small businesses. This paper discusses the strategies, process and framework that were created to procure the needed items under a short lead time. The process of the partnership and outcomes are transferable and capable of being used by others to benefit society. Design/methodology/approach The case study methodology was used to investigate and summarize the actions and events of the SCAC. The case presented was tracked from the initial call to action from a local emergency response organization, Lucas County Emergency Operation Center (EOC), through the first six months of the committee’s work. Data collection was completed through a triangulation of sources. Findings The findings of this study reveal that public firms are vulnerable in a crisis. A crisis exposes the inequities in the supply chain and the need for public and private collaboration to use innovative procurement strategies. This study suggests that PPP procurement professionals benefit from working together. Both can learn from the limitations and benefits of collaborating. Practical implications This study offers a framework on how PPPs can be established to procure PPE during a crisis. This study has practical implications for private and public firms seeking to collaborate for the good of society. Social implications The findings of the study reveal that public firms are vulnerable in a crisis, which exposes the inequities in their supply chains. Private-public partnership (PPP) procurement professionals mutually benefit from working together as both can learn from each whether it is procuring PPE during a crisis or seeking to team up for the good of society. Society benefits when these organizations share solutions to problems rather than compete against one another during a crisis-situation such as a global pandemic. Supplies get to those who need them the most and information flows amongst the organizations to ensure equity in the availability of the supplies. Originality/value This study contributes to the growing body of literature that argues that public procurement must be innovative and strategic to contribute to socially responsible solutions. Government regulations require public procurement to use competitive bidding for accountability, cost reduction and to reduce fraud. However, emergency situations require innovative procurement strategies. The use of innovative procurement strategies is typical in private procurement. During a crisis, supplier relationships, lead-time management and shared and transfer of knowledge must be leveraged to acquire critical items in a timely manner. A lack of innovative public procurement strategies constrains the public and small under resourced businesses, rendering them inoperable. This paper provides a case study of an effective PPP during the COVID-19 pandemic. This paper highlights the strategies, process and framework for future research and collaborations.

Achieving construction innovation in best value procurement projects: New Zealand mega projects study

Purpose Best value procurement (BVP) has been recognized for some time as offering significant opportunities to advance process excellence in the construction sector. As an innovative approach to strategic procurement, BVP has attracted attention from the New Zealand (NZ) Government. It has similarly been found that the most substantial benefit of this modified approach to procurement is in value creation and innovative organizational processes through identifying “best value.” Yet to date, there is a lack of robust evidence as to how BVP can exactly influence construction innovation. Accordingly, this paper aims to explore how to improve BVP implementation to promote construction innovation and what are the values to be achieved in BVP mega projects from the view of innovation. Design/methodology/approach Semi-structured interviews with 22 participants, including project managers, procurement specialists, engineers and general managers from three organization types, were conducted to explore BVP implementation in a range of mega construction projects in NZ. Findings Barriers to BVP implementation and value innovation have been identified in this paper. Data analysis suggested traditional mindset in the procurement process, market constraints, mistrusts and fuzzy definition of BVP are the challenges for BVP implementation; BVP cultivates organizational competition because of diverse collaboration models and value attitudes; and BVP considers more values from the whole supply chain. To promote innovative construction, existing BVP should consider adopting progressive enhancements toward updating procurement guidance, encouraging effective communications, collaborating and promoting changes in stakeholders’ mindset. Practical implications Identified barriers to BVP implementation set up a platform for framing guidance, which could provide an effective approach as it enables a better understanding of what BVP means to NZ and what needs to be overcome. Taking this into account, similar small size markets around the world would be able to consider the applicability of BVP for innovative improvements. Originality/value This paper provides insights into value concepts in project procurement. It theoretically and practically possesses originality in linking BVP to innovative construction. The study of BVP and its application further reveals the importance of establishing a distinct regulation and fostering organizational competition from value aspects to achieve construction innovation.

EFFECT OF STRATEGIC PROCUREMENT ON PERFORMANCE OF WORLD BANK FUNDED PROJECTS IN NAIROBI CITY COUNTY, KENYA

Purpose: The purpose of the study was to examine influence of strategic procurement on performance of world bank funded projects in nairobi city couty, Kenya Methodology: This research study adopted a descriptive research design approach. The researcher preferred this method because it allows an in-depth study of the subject. To gather data, structured questionnaire was used to collect data from 120 officers working for the implementing agencies spread in various World Bank funded projects in Nairobi City County. . As a rule of thumb census was used because the total population is less than 200. Once collected, data was analyzed using descriptive and inferential statistics. Quantitative data was analyzed using multiple regression analysis. The qualitative data generated was analyzed by use of Statistical Package of Social Sciences (SPSS) version 20. Results: The response rate of the study was 87%. The study findings of the study indicated that vendor optimization, outsourcing, information technology adoption and total quality management had a positive impact on the performance of World Bank funded projects in Nairobi City County, Kenya such as general cost reduction of projects, greater customer satisfaction and timely delivery of the projects. Unique contribution to theory, practice and policy: the study recommended that public institutions should embrace strategic procurement so as to improve performance and further research should to be carried out in other institutions to find out if the same results can be obtained since the findings may not be applicable to all other counties, or implementing agencies in Kenya and the world at large.

STRATEGIC PROCUREMENT ON PERFORMANCE OF WORLD BANK FUNDED PROJECTS IN NAIROBI CITY COUTY, KENYA

Purpose: The purpose of the study was to examine influence of strategic procurement on performance of world bank funded projects in nairobi city couty, Kenya Methodology: This research study adopted a descriptive research design approach. The researcher preferred this method because it allows an in-depth study of the subject. To gather data, structured questionnaire was used to collect data from 120 officers working for the implementing agencies spread in various World Bank funded projects in Nairobi City County. . As a rule of thumb census was used because the total population is less than 200. Once collected, data was analyzed using descriptive and inferential statistics. Quantitative data was analyzed using multiple regression analysis. The qualitative data generated was analyzed by use of Statistical Package of Social Sciences (SPSS) version 20. Results: The response rate of the study was 87%. The study findings of the study indicated that vendor optimization, outsourcing, information technology adoption and total quality management had a positive impact on the performance of World Bank funded projects in Nairobi City County, Kenya such as general cost reduction of projects, greater customer satisfaction and timely delivery of the projects. Unique contribution to theory, practice and policy: the study recommended that public institutions should embrace strategic procurement so as to improve performance and further research should to be carried out in other institutions to find out if the same results can be obtained since the findings may not be applicable to all other counties, or implementing agencies in Kenya and the world at large. Keywords: vendor optimization, outsourcing, information technology adoption ,total quality management