An evaluation method of reduced procurement risks by decentralized ordering in supply chain

Mori, Masakatsu; Kobayashi, Ryoji; Samejima, Masaki; Komoda, Norihisa

doi:10.1109/indin.2013.6622862

Cited by 5 publications

(3 citation statements)

References 11 publications

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“…As procurement has grown to be an important area of organization activity, there have been a number of works related to various problems of this domain: procurement fraud [1,2,3], aggregation of purchases [4], procurement issues related to underlying supply chain optimization [5,6,7]. Nevertheless these research initiatives are very selective and focused on specific scenarios, to our knowledge, not related to situation or problems of the organization described in this article.…”

Section: Related Workmentioning

confidence: 99%

Prediction of Enterprise Purchases Using Markov Models in Procurement Analytics Applications

Westerski

Kanagasabai

Wong

et al. 2015

Procedia Computer Science

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Procurement is a set of activities and processes related to acquisition of goods and services through purchase orders placed by organization employees, from external contractors. This article describes practical experiments with procurement dataset of a major governmental organization in Singapore. In particular, we highlight the problems that emerge when trying to implement analytics for prediction of future purchases. The goal of such analytics is to deliver beneficial information to procurement office that plans and manages relationships with external sellers. In the article we describe the characteristics of the procurement dataset specifics and its implications on the future purchase problem that we attempt to solve using Markov chains model. Our analysis shows high diversity of purchase descriptions resulting in low ability to detect sequential patterns of purchasing officers. The solution presented in the article is additional dataset preprocessing involving use of hierarchical clustering. Our experiments with various similarity measures show an improvement allowing a practical deployment within our procurement analytics system prepared for the case study governmental organization.

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Section: Related Workmentioning

confidence: 99%

Prediction of Enterprise Purchases Using Markov Models in Procurement Analytics Applications

Westerski

Kanagasabai

Wong

et al. 2015

Procedia Computer Science

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“…They are well aware of project needs and have access to the knowledge base of projects, which capacitate them to suggest the best sourcing strategies. The underlying benefit of PMO structures in SPM includes (1) insisting adherence of suppliers to sustainability requirements and (2) minimising procurement risks emanating from a variety of technical and quality matters (Mori, et al, 2013). These risks are closely interrelated and are likely to leave negative impacts on sustainability objectives.…”

Section:  the Benefits Of Pmo Structures To Achieve Spm Objectivesmentioning

confidence: 99%

Achieving Sustainable Procurement in Construction Projects: The Pivotal Role of a Project Management Office

Ershadi¹,

Jefferies²,

Davis³

et al. 2021

CEB

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Environmental and ecological impacts associated with construction activities have become an ever-increasing concern, especially the considerable amount of waste generated on construction sites. Regulations and growing client pressure on meeting environmental standards have led contractors to adopt sustainable practices and try to embed this concept in their processes. Sustainable procurement management (SPM) as a potential solution takes the environmental consequences of procurement decisions into account and integrates sustainable practices into project procurement to bring positive environmental outcomes. Previous research has mainly focused on the public sector in achieving green procurement, yet this study attempts to highlight internal capacities that help private organisations manage the requirements associated with practicing sustainability. It is theorised that robust management structures, specifically project management offices (PMOs), would enhance the oversight capabilities of contractors in implementing the SPM process. The objectives of the current study are to (1) identify the requirements of a sustainable project procurement process in construction sites based on a literature review, and (2) explore the facilitative role of PMO units in achieving these requirements in the private sector. A literature review was conducted followed by a qualitative survey to solicit the viewpoints of construction professionals in principle contracting firms. As a result of the study, we identified 17 sustainability requirements and found that PMOs boost collaboration and improve the quality of decision making towards sustainable procurement. The findings (1) explain how PMOs support sustainability, (2) provide insights on implementing sustainable practices in project purchases, and (3) improve theoretical understanding of the SPM principles.

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“…Because of the problems only in using the urgent stock, some conventional researches address evaluating the effect of mitigating risks by decentralizing orders [10] [11] [12]. The simulation of the cost and the risk uses Monte Carlo method to decide the amount of the stock stochastically.…”

Section: Introductionmentioning

confidence: 99%

Cost-benefit Analysis of Decentralized Ordering on Multi-tier Supply Chain by Risk Simulator

Mori¹,

Kobayashi²,

Samejima³

et al. 2014

SIC

Self Cite

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For the retailer on supply chain, decentralized ordering to multiple suppliers is an effective method to mitigate the risk that the retailer cannot sell the product to customers when the suppliers are down by catastrophic disasters. But decentralized ordering costs the retailer because the retailer procures products from the suppler whose procurement cost is expensive. For the retailers' cost-benefit analysis of the decentralized ordering, we address developing the risk simulator on multi-tier supply chain to evaluate the effect of risk mitigation and the cost by decentralized ordering. In order to develop the risk simulator for the multi-tier supply chain, we combine the risk simulator for the 2-tier supply chain as a building block. In addition, when the 2-tier supply chain is combined, the risk simulator calculates propagation of the risk and the cost from a 2-tier supply chain to the others. Applying the risk simulator to the real supply chain with different parameter values, the authors confirmed that the risk simulator enables to find the relationship between the cost-benefit characteristic and the multi-tier supply chain model.

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An evaluation method of reduced procurement risks by decentralized ordering in supply chain

Cited by 5 publications

References 11 publications

Prediction of Enterprise Purchases Using Markov Models in Procurement Analytics Applications

Prediction of Enterprise Purchases Using Markov Models in Procurement Analytics Applications

Achieving Sustainable Procurement in Construction Projects: The Pivotal Role of a Project Management Office

Cost-benefit Analysis of Decentralized Ordering on Multi-tier Supply Chain by Risk Simulator

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