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Article
Publication date: 3 March 2023

Katie D. Ricketts, Jeda Palmer, Javier Navarro-Garcia, Caroline Lee, Sonja Dominik, Robert Barlow, Brad Ridoutt and Anna Richards

Private retail and brand-driven sustainable procurement standards are influencing global agri-food markets, shifting trade and export priorities and reshaping food supply chains…

Abstract

Purpose

Private retail and brand-driven sustainable procurement standards are influencing global agri-food markets, shifting trade and export priorities and reshaping food supply chains. Using the case of Australian beef, the authors construct and evaluate three procurement activity “portfolios” and evaluate how these activity sets pull towards or against diverse organisational goals and/or science-based sustainability objectives.

Design/methodology/approach

A review of the academic and practitioner literature identified three key pillars for sustainable Australian beef procurement: animal welfare, environmental management and climate change (i.e. emissions). A subset of sustainable beef production activities (n = 100) was identified through this review plus semi-structured interviews with Australian beef retailers and industry bodies. This activity set was filtered (n = 40) and scored by a panel of science experts via a series of workshops and an additional survey. Using these data, the authors use a k-means cluster analysis (k = 3) to consider the strong or weak contributions of each activity portfolio towards typical sustainable beef goals.

Findings

A portfolio-based view of sustainable procurement puts the trade-offs between activities and the need for clear sustainability prioritisation into sharp focus. The authors find that individual strategies may be singularly more or less impactful, complex or popular, but when combined as a suite of activities enacted towards a particular goal or set of goals, essential for success. The authors find that obtaining balance across sustainable beef pillars versus within specific pillars can narrow the optimal set of activities that can succeed against multiple sustainability goals.

Practical implications

For procurement managers, the balance between clear focus and multidimensional progress is a difficult challenge. It requires the bold identification and articulation of an organisation’s interlocking corporate, industry or environmental objectives and flexibility on the strategies, tools and resources required. The authors posit that shifting away from a focus on rigid metrics may be useful in breaking the impasse on meaningful action.

Social implications

Using a set of known activities and strategies that a procurement manager might draw from in operationalising sustainability goals, the authors cluster activities into three discrete activity portfolios. Each portfolio requires differing levels of effort, implementation complexity and potential for within-pillar and cross-pillar impact (i.e. co-benefits). Assessing the evidence and potential for cross-pillar impacts of individual strategies is a complex undertaking, indicative of the systems and tangled interactions that characterise sustainability science more broadly.

Originality/value

By assessing how the procurement function can be leveraged and operationalised towards sustainability goals through a lens of optimal portfolio management, the authors provide a way forward for the procurement managers working within large retailers and agri-food businesses to progress towards multiple sustainability pillars simultaneously.

Details

Sustainability Accounting, Management and Policy Journal, vol. 14 no. 2
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 29 July 2021

Narath Bhusiri, Ruth Banomyong, Puthipong Julagasigorn, Paitoon Varadejsatitwong and Nirpa Dhami

The impact of supply disruptions from unplanned events can cause goods shortage, limited responsiveness and high opportunity cost thus compromising development aid programmes'…

1012

Abstract

Purpose

The impact of supply disruptions from unplanned events can cause goods shortage, limited responsiveness and high opportunity cost thus compromising development aid programmes' achievement targets. These situations force humanitarian aid agencies to develop new strategies for effectively managing their supplies. The purpose of this paper is to illustrate the foundation of humanitarian supply chain resilience through the development of an adapted Kraljic portfolio model.

Design/methodology/approach

Action research was used to adapt and validate the Kraljic portfolio model to the development aid context. The research team worked with a humanitarian aid agency in developing criterions and used Analytical Hierarchical Process (AHP) in weighting those key criterions.

Findings

The adapted portfolio model was able to evaluate purchases done by the aid agency by incorporating different perspectives related to the strategic importance of purchase and supply vulnerability. In particular, development aid programmes require large supplies annually. Better classification offers improved visualisation of purchases, leading to a more precise adoption of mitigation strategies and policies to minimise supply disruption risks.

Research limitations/implications

Adapting the Kraljic portfolio model is a stepping-stone to building humanitarian supply chain resilience. The proposed humanitarian supply chain resilience framework is based on the foundation that current humanitarian supply chain needs to be re-engineered. In order to re-engineer, the supply base strategy must first be revisited.

Practical implications

Many aid agencies do not have a holistic view on their purchases and commonly apply a transactional classification of purchases that only considers the consumption values. Purchasing strategies mostly focus on cost minimisation, whereas risk mitigations have been disregarded. The proposed portfolio model overcomes these drawbacks. Societal impact may be limited but development aid agencies will be able to offer more reliable aid delivery as part of their mandate.

Originality/value

The proposed portfolio model is among the first tool to guide humanitarian aid agencies to develop procurement strategies to alleviate supply disruptions and increase development aid programmes resilience.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 11 no. 4
Type: Research Article
ISSN: 2042-6747

Keywords

Article
Publication date: 6 September 2018

Zhen Hong, C.K.M. Lee and Linda Zhang

The purpose of this paper is twofold, first providing researchers with an overview about the uncertainties occurred in procurement including applicable approaches for analyzing…

6975

Abstract

Purpose

The purpose of this paper is twofold, first providing researchers with an overview about the uncertainties occurred in procurement including applicable approaches for analyzing different uncertain scenarios, and second proposing directions to inspire future research by identifying research gaps.

Design/methodology/approach

Papers related to supply chain risk management and procurement risk management (PRM) from 1995–2017 in several major databases are extracted by keywords and then further filtered based on the relevance to the topic, number of citations and publication year. A total of over 156 papers are selected. Definitions and current approaches related to procurement risks management are reviewed.

Findings

Five main risks in procurement process are identified. Apart from summarizing current strategies, suggestions are provided to facilitate strategy selection to handle procurement risks. Seven major future challenges and implications related PRM and different uncertainties are also indicated in this paper.

Research limitations/implications

Procurement decisions making under uncertainty has attracted considerable attention from researchers and practitioners. Despite the increasing awareness for risk management for supply chain, no detail and holistic review paper studied on procurement uncertainty. Managing procurement risk not only need to mitigate the risk of price and lead time, but also need to have sophisticated analysis techniques in supply and demand uncertainty.

Originality/value

The contribution of this review paper is to discuss the implications of the research findings and provides insight about future research. A novel research framework is introduced as reference guide for researchers to apply innovative approach of operations research to resolve the procurements uncertainty problems.

Details

Industrial Management & Data Systems, vol. 118 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 29 November 2019

Henrico Plantinga, Hans Voordijk and André Dorée

The development of innovative procurement instruments can be costly and risky. To capitalize on successful innovative instruments, it is essential that these are reused. However…

Abstract

Purpose

The development of innovative procurement instruments can be costly and risky. To capitalize on successful innovative instruments, it is essential that these are reused. However, reuse can be problematic in project-based public client organizations. This paper aims to apply the ambidexterity concept of integration mechanisms to examine how such reuse can be facilitated.

Design/methodology/approach

An initial framework is developed to conceptualize and contextualize the ambidexterity integration mechanism for the procurement function of a multi-project public client. Concluding that, in this situation, an organizational procedure is an appropriate interpretation of the integration mechanism, a design science project is carried out to develop and implement a procedure in a real-life setting.

Findings

Reconstructed reuse patterns confirm the need to have an actionable integration mechanism implemented. Integration, in the sense of drawing benefits from successful one-off innovative procurement instruments, may fail unnoticed if not organized and deliberately managed. The procedure developed in the design science project demonstrates how such integration can be achieved.

Originality/value

Although research on ambidexterity has grown exponentially in the past decade, it is yet to be applied in the field of public procurement. Furthermore, the application of design science research is novel in this field of literature. The paper illustrates how both can help solve a relevant organizational problem.

Details

Journal of Public Procurement, vol. 20 no. 1
Type: Research Article
ISSN: 1535-0118

Keywords

Article
Publication date: 1 March 2007

J. Gordon Murray

This paper is concerned with the potential role of elected members in the UK local government strategic procurement process. Strategic procurement and the best value regime are…

Abstract

This paper is concerned with the potential role of elected members in the UK local government strategic procurement process. Strategic procurement and the best value regime are discussed. A working definition of strategic procurement in local government is then provided. The rationale for councils to review member involvement in strategic procurement follows. Observations from action learning case studies are discussed prior to proposals being offered as to what might represent appropriate new roles for elected members in the UK local government strategic procurement process.

Details

Journal of Public Procurement, vol. 7 no. 2
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 10 May 2019

Arthur Abreu da Silva Lamenza, Tharcisio Cotta Fontainha and Adriana Leiras

The purpose of this paper is to develop a Humanitarian Purchasing Matrix to guide purchasing strategies for relief items in humanitarian operations.

Abstract

Purpose

The purpose of this paper is to develop a Humanitarian Purchasing Matrix to guide purchasing strategies for relief items in humanitarian operations.

Design/methodology/approach

The research synthesizes the structures of a Purchasing Portfolio Model and the characteristics of purchasing in humanitarian operations, validating them with academics and practitioners to develop a Humanitarian Purchasing Matrix. Then, based on the Analytic Hierarchy Process to classify the relief items in the matrix, an illustrative example is used as an empirical test for the proposed Humanitarian Purchasing Matrix.

Findings

The academic literature on purchasing in general and purchasing in humanitarian operations share some similarities in terms of “Importance of Purchasing” and “Complexity of Supply Market” dimensions. Moreover, the analysis of such criteria supports the definition of purchasing strategies for different relief items in humanitarian operations.

Practical implications

The Humanitarian Purchasing Matrix can be considered a tool/guide for professionals of humanitarian organizations in the adoption of purchasing strategies for the different relief items purchased for humanitarian operations.

Originality/value

Considering a scenario of a constant increase in the variety of relief items, the high purchasing volume and the pressure to more efficient relief operations, the research discusses the intersectionality of business purchasing models and the purchasing characteristics of humanitarian operations. Moreover, the research deliveries a tool/guide to the adoption of purchasing strategies that are composed of criteria observed in the literature and suggested by both humanitarian logistic academics and practitioners.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 9 no. 2
Type: Research Article
ISSN: 2042-6747

Keywords

Article
Publication date: 3 June 2014

C.K.M. Lee, Danping Lin and Rohan Pasari

The purpose of this paper is to formulate procurement strategies and determine the optimal procurement quantity in order to maximize profit through forward contracting and the…

2009

Abstract

Purpose

The purpose of this paper is to formulate procurement strategies and determine the optimal procurement quantity in order to maximize profit through forward contracting and the spot market.

Design/methodology/approach

The procurement process is modeled at various stages along a time horizon from the perspective of the buyer, with consideration of uncertain yields, stochastic demand and dynamic spot market prices. Monte Carlo simulation based experiments were conducted to figure out the best procurement quantity for five different scenarios. The framework was developed to understand the impact of different uncertain variables on a firm's profit. A case study was carried out in a steel making company in India, with real data.

Findings

The results indicate that the proposed approach enables buyers to achieve higher profits under volatile demand conditions. In the case study, it was found that the profit is higher for the spot market than for contract pricing if there is significant demand and spot price volatility.

Originality/value

This research considers not only demand uncertainty but also supply uncertainty in the procurement process, and profit analysis was carried out to enable an enterprise to set up a procurement plan by using forward contracting and the spot market. This study should also increase awareness in both academia and industry on the opportunities of using the spot market to enhance flexibility and to mitigate risk in the procurement process.

Details

Industrial Management & Data Systems, vol. 114 no. 5
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 February 1997

ANDREW COX and MIKE TOWNSEND

This paper is based on research being undertaken by the Centre for Strategic Procurement Management (funded by BAA) considering best practice in construction procurement. The…

1118

Abstract

This paper is based on research being undertaken by the Centre for Strategic Procurement Management (funded by BAA) considering best practice in construction procurement. The primary aim of the study is to establish how supply chains in construction may be managed more efficiently and effectively. This involves the amalgamation of conventional views on industry problems and initiatives for improvement, the theoretical and empirical consideration of supply chain optimisation, the identification of ‘best practices’ in the procurement process, and the development of suitable change management strategies to allow organizations to move towards better practice. This paper discusses the limitations behind the current thinking for reforming the UK construction industry, and how Latham's ‘team’ approach will not succeed where clients adopt a ‘traditional’ approach to procuring their construction needs. There is a need to differentiate between ‘process’ and ‘commodity’ spend in construction. It is argued that the benefits of a collaborative approach can only be realized by those clients managing ‘fit‐for‐purpose’ supply relationships to satisfy their regular process requirements. An approach known as relational competence analysis is suggested as a methodology for helping clients to determine what is ‘fit for their purpose.

Details

Engineering, Construction and Architectural Management, vol. 4 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 28 February 2019

Henrico Plantinga, Hans Voordijk and Andre Doree

The purpose of this paper is to show that for frequently procuring public clients: the reasoning behind the use of procurement instruments is a process in its own right that…

Abstract

Purpose

The purpose of this paper is to show that for frequently procuring public clients: the reasoning behind the use of procurement instruments is a process in its own right that requires managerial and scientific attention; modeling this process contributes to making sensible procurement choices; and managing this process is a relevant factor in the client’s development toward strategic procurement.

Design/methodology/approach

A model is developed to conceptualize the reasoning behind procurement instruments. Using this model in a case study, the reasoning behind the evolution of a particular procurement instrument as applied by a public infrastructure management organization is reconstructed.

Findings

The case study results show that an initially explicitly formulated set of main reasons for operating a qualification system can implicitly evolve over time into a different set of reasons. From a managerial point of view, explication of implicit reasons is important to both avoid the risk that the real value of the procurement instrument remains undetected as well as properly assess its strategic alignment with higher level strategies. The conceptual model proves to be a useful tool to support that.

Originality/value

Bringing the reasoning behind the use of procurement instruments to the fore, this study explores an area of construction procurement research that is positioned between the disciplines of purchasing and supply management, knowledge management and strategic management.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Abstract

Purpose

Competency frameworks can support public procurement capacity development and performance. However, literature on connecting professionalisation with national procurement contexts is limited. This paper aims to explain and conceptualise recent Romanian experience with developing bespoke competency frameworks at national level for public procurement that reflect the features of the Romanian public procurement system. The approach used could guide in broad-brush, mutatis mutandis, other (national) public procurement systems with comparable features, mainly those seeking a shift from a rather administrative function of public procurement towards a strategic function.

Design/methodology/approach

This case study reflects on the methodology used for analysing the Romanian public procurement environment in EU context to develop bespoke professionalisation instruments, and on ways to integrate competency management approaches in Romanian public procurement culture. That methodological mix has been mainly qualitative and constructionist, within an applied research approach. It combined desk research with empirical research and included legal research in this context.

Findings

A principled, methodological and pragmatic approach tailored to the procurement environment in question is essential for developing competency frameworks capable to resonate to and address the specific practical needs of that procurement system.

Social implications

Competency frameworks can uphold societal objectives through public procurement.

Originality/value

Using valuable insights into the development of the Romanian public procurement competency frameworks, the paper provides a conceptual framework for instilling competency management approaches to public procurement professional development where the latter is governed by a rather distinct, public administration, paradigm. This conceptual framework can guide other public procurement systems and stimulate further research.

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