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Purpose This paper aims to develop a framework for switching a service supplier in a supply network. Design/methodology/approach The study builds on existing literature in the field of purchasing and supply management, public procurement (PP) and the Industrial Marketing and Purchasing approach, as well as on an illustrative example case, from the PP context, of a supplier switch in a service delivery process. Findings During a switching process, the buyer must simultaneously manage the ending of a relationship with the incumbent supplier and the beginning of a relationship with a new supplier. Collaboration with the focal suppliers to develop a service process with standardized components prevents disruptions in the service processes and reduces the impact of the switch on the wider network. Research limitations/implications The conceptualization suggested in this paper needs to be further explored in different empirical contexts to assess its practical adequacy. Practical implications Practitioners responsible for service procurement can use the findings to develop collaboration with suppliers, both when it comes to service process development and to the switching process. Furthermore, the authors highlight the importance of ending competencies and the development of an exit plan to conduct a “beautiful exit.” Originality/value The paper integrates relationship initiation and ending studies, as well as procurement process models to develop a refined switching process framework. Many PPs rely on short-term relationships due to the legal obligation to frequently invite suppliers to tender, thus understanding the supplier switching process is important both for private and public sector actors.

The fourth industrial revolution has significantly changed the traditional way of managing supply chains. The applications of Industry 4.0 (I4.0) technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) in different processes of supply chains have assisted companies to improve their performance. Procurement can be considered a critical process in supply chain management since it can provide novel opportunities for supply chains to improve their efficiency and effectiveness. However, I4.0 applications can be costly and may not be reasonably affordable. Therefore, the benefits of implementing these technologies should be clarified for procurement managers before investing in the digitalization of the procurement process. Despite the importance of this issue, few papers have attempted to address the effects of I4.0 technologies and smart systems in procurement. To fill this gap, a Systematic Literature Review (SLR) on the applications of I4.0 technologies in procurement has been used in this study. By reviewing 70 papers through appropriate keywords, a conceptual framework is developed to classify different value propositions provided by the different applications of I4.0 technologies in procurement processes. Results reveal nine value propositions that can provide a better understanding for the procurement department to analyze the benefits of implementing the related I4.0 technologies in different activities. Finally, findings and future study opportunities are concluded.

Purpose Facilities management (FM) has become a revolutionary profession, which adds value to the built environment. Compared to other industries, the development of the FM industry is at a preliminary stage owing to poor adaptation of digitalisation. Although FM procurement process has improved over time, it is still complex, inefficient and challenging with the lack of digital innovations. Blockchain technology has emerged as a revolutionary digital technology under “Procurement 4.0”. The purpose of this paper is to develop a framework that enables the effective use of blockchain technology for FM procurement process. Design/methodology/approach Data collection using interviews was performed in two stages adopting a mono method qualitative methodological choice using case studies and survey strategies. Template analysis and content analysis techniques were used to analyse the collected data. Findings Through the findings, main steps in the current FM process were identified. It was revealed, manual procurement has issues related to, efficiency, data security, communication and transparency. Similarly, e-procurement systems also have issues related to data security, poor integration and transparency. FM industry has identified the requirement of transforming into an advanced digitalised technology-based procurement system. This study revealed, blockchain features to overcome these issues and the application of blockchain technology in different steps of the procurement process through the developed framework. Originality/value The developed framework offers a solution for the future technological transformation of FM procurement using blockchain technology.

This report assesses the potential of electricity contract auctions as a procurement option for the World Bank's client countries. It focuses on the role of auctions of electricity contracts designed to expand and retain existing generation capacity. It is not meant to be a 'how-to' manual. Rather, it highlights some major issues and options that need to be taken into account when a country considers moving towards competitive electricity procurement through the introduction of electricity auctions. Auctions have played an important role in the effort to match supply and demand. Ever since the 1990s, the use of long-term contract auctions to procure new generation capacity, notably from private sector suppliers, has garnered increased affection from investors, governments, and multilateral agencies in general, as a means to achieve a competitive and transparent procurement process while providing certainty of supply for the medium to long term. However, the liberalization of electricity markets and the move from single-buyer procurement models increased the nature of the challenge facing system planners in their efforts to ensure an adequate and secure supply of electricity in the future at the best price. While auctions as general propositions are a means to match supply with demand in a cost-effective manner, they can also be and have been used to meet a variety of goals.

PurposeThis paper employs the positivism paradigm, quantitative approach and explanatory research design. It analyses primary data obtained from manufacturing firms via structured questionnaires and uses the partial least square-structural equation modelling technique to establish the effect of individual procurement process risk on procurement performance.Design/methodology/approachProcurement risks are inevitable in manufacturing procurement process; a situation that could undermine the performance of manufacturing firms if not properly managed. Yet, with procurement accounting of about 14–19% of developing countries gross domestic product, the effects of procurement process risk on performance remain scarce in manufacturing firms in developing countries. Therefore, the paper aims to investigate the effect of procurement process risk on procurement performance of manufacturing firms.FindingsIn this paper, five out of the six procurement process risks studied were found to be undermining procurement performance of manufacturing firms significantly. However, the risk threshold effect on the performance differs.Research limitations/implicationsAlthough this research is geographically/sector bias, several insightful managerial implications can be drawn to manage procurement process risk in manufacturing settings irrespective of the area of operation. The results of this research imply that manufacturing firms' procurement process is risk prone and the effect of risk surrounding each procurement process on procurement performance differs. Hence, the need to identify and analyse the risks surrounding each procurement process before making managerial decision to spend firms limited resources in response to the individual risk to improve procurement performance in the manufacturing sector.Originality/valueThis paper is the first to provide existing and future procuring practitioners/firms with in-depth empirical evidence of the effect of the procurement process risks on procurement performance in manufacturing firms operating in developing economies.

PurposeThough the Public Procurement Act of Ghana makes room for specific socio-economic policies (environmental, social, economic and other policies which are intended to promote social and economic impact), there is no explicit definition and provision for social value as an evaluation criterion, culminating in the absence of a definition in the Act. This paper elicits the conception and understanding of social value from stakeholders in the Ghanaian construction industry.Design/methodology/approachThe study adopted a qualitative method that relied on a semi-structured interview of 30 participants purposively drawn from Western, Western North and Central regions of Ghana. An inductive thematic analysis approach, which involved identifying repetitions, exploring similarities and differences, noting linguistic connectors, and a framework were employed to analyse the data.FindingsThe study established no single definition or explanation for social value in the construction industry in Ghana. However, it was revealed from the study that the concept of social value could be defined from the functional perspective of the definer, particularly from the perspective of a Procurement Officer, Works Engineer, and a Quantity Surveyor. A new insight from the study that differs from the body of literature is that participants equated benefits derived from physically constructed projects as social value.Social implicationsThe study has implication for public administration and practice regarding the decision-making process in the construction industry in Ghana. It provides a vital awakening on social value as a criterion in evaluating construction works procurement in Ghana. The ability of participants to equate the benefits derived from executed construction projects as social value creates a new perspective on understanding the meaning of social value in the procurement of works construction.Originality/valueThe study contributes to the state-of-the-art and ongoing discourse on the concept of social value globally. The findings create an important catalyst for social value research in the Ghanaian construction industry.

This paper examines the antecedents and consequences of Internet use in the procurement process. Drawing upon the resource-based view (RBV) of the firm and the technology, organization, and environment framework, we develop an integrative model that examines the antecedents and consequences of Internet use in two stages—the search stage and the order initiation and completion (OIC) stage—of the procurement process. The model enables us to deconstruct both the usage and the performance aspects of information technology (IT) in business processes, and to provide insights into the enablers of use and business value. The model is estimated with survey data from 412 firms. Our results suggest that while some resources, such as procurement-process digitization, influence Internet use in both the procurement stages, other resources, such as the diversity of organizational procurement knowledge, impact Internet use in only one stage. We also find that Internet use in the OIC stage has a more significant impact on procurement-process performance than use in search. This study extends the digital capabilities and firm performance literature in the context of electronic procurement. This study also contributes to the small but emerging stream of literature that investigates antecedents, the extent, and implications of IT use holistically.

Internal barriers in the procurement process and pharmaceutical supply planning are barriers that can be controlled through interventions. The research focuses on proposing changes to the pharmaceutical supply management system, particularly in the aspects of planning and procurement within the internal team of the RSPG Cisarua Bogor. The intervention in this research applying lean six sigma extends only up to the “improve” phase. Data collection involves in-depth interviews with informants involved in the pharmaceutical supply planning and procurement process, as well as observation and document analysis. The research ends in group discussions to reach an agreement. The research findings reveal that a lack of established procedures in the pharmaceutical supply procurement process contributes to prolonged procedures and the absence of efficiency benchmarks within the system. Moreover, an unavailability of tools to facilitate the pharmaceutical supply procurement process causes low internal team communication. The “improve” phase of lean six sigma leads to proposed changes to the standards of operational procedures for routine pharmaceutical procurement, indicator applications of procurement efficiency and the utilization of the ABC VEN functioning as a tool within the pharmaceutical supply procurement process. The proposed improvement to tackle the matter includes the utilization of ABC VEN and efficiency indicators to overcome waste overproduction identified during the pharmaceutical supply planning process. In addition, it also involves the establishment of a new standard of operating procedure covering timelines, tools for pharmaceutical supply categorization based on ABC VEN and procurement efficiency indicator to handle waste waiting during the pharmaceutical supply procurement process.

Purpose The purpose of this paper is to propose a new procurement strategy with the aim to achieve higher value for money (VFM) in public works delivery. Its main innovation lies in the possibility of optional submission of cost-efficient design variants by any interested contractor within the context of an open procedure. The final scope of works incorporates the variants approved, and all contractors are invited to submit a bid for the revised scope and budget. Design/methodology/approach This paper is a piece of applied research presenting the development of a new, cost-effective procurement strategy for public works, geared at the European Union (EU) legal framework. The strategy’s feature compilation has been based on comprehensive literature review while numerical data from a real world project were used to demonstrate its financial advantages. Findings The proposed strategy enables the delivery of the best value project at the lowest cost possible. This is achieved through ensuring high competition among competent contractors, improving the cost efficiency of technical solutions, discouraging future scope changes and establishing objectivity, fairness and transparency in the process of contract award. Practical implications The use of the proposed strategy results in public projects of enhanced VFM, reduced constructability issues and less scope changes during the construction stage. Originality/value The proposed strategy marks a new approach in procurement which enables the delivery of best VFM in public works. Therefore, it makes a valuable contribution towards the achievement of the overarching EU target for efficient public spending.