Co-procurement: making the most of collaborative procurement
Autor: | Mark B. Duinkerken, Nadia Pourmohammad-Zia, Jafar Rezaei, Charalampos Dimitropoulos, Lori Tavasszy |
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Jazyk: | angličtina |
Rok vydání: | 2020 |
Předmět: |
Transaction cost
Structure (mathematical logic) 0209 industrial biotechnology 021103 operations research Supply chain management Total cost Strategy and Management 0211 other engineering and technologies 02 engineering and technology Management Science and Operations Research Outcome (game theory) Industrial and Manufacturing Engineering collaboration 020901 industrial engineering & automation Consolidation (business) Procurement transaction cost pricing ComputingMilieux_COMPUTERSANDSOCIETY Business procurement Industrial organization |
Zdroj: | International Journal of Production Research, 58(15) |
ISSN: | 0020-7543 |
Popis: | While the procurement decision is generally made by individual buyers, this study investigates how a group of buyers can make a shared decision. We call this collaborative approach, co-procurement. A mathematical model is formulated for the decision of procurement from multiple suppliers. The model is solved for individual buyers. The outcome shows the optimal number of items a buyer should buy from different suppliers such that the total cost is minimised for that buyer. Next, it is investigated how a group of buyers could make this decision together. The proposed model takes into account transaction costs of collaboration, to determine the optimal size of the collaboration and the involved parties. The idea is new in the old direction of procurement and it introduces the concept of transaction costs in this area and analyses its impact on the optimal collaboration size and mix. A case study from Dutch Food Valley is provided to investigate the benefits of co-procurement and validate the developed structure. The results indicate that co-procurement can bring considerable cost-savings through consolidation of orders and more efficient transportation schedules. A sensitivity analysis is conducted to determine the impact of changes in the transaction cost in favour of the co-procurement. |
Databáze: | OpenAIRE |
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