A growing amount of (semi) public organizations in the Netherlands write tenders with mandatory social conditions. It is important for SMEs to focus on social procurement in their business strategy. SMEs should be proactive and try to affect the conditions (semi) public organizations write in their tenders. On the other hand, (semi) public organizations should facilitate SMEs by developing transparent procurement processes and by organizing information meetings with SMEs. The most important factor for an effective social procurement procedure seems to be the dialogue between SMEs, purchasers and the persons responsible for matching target groups. Because it seems easier for SMEs to meet social procurement conditions if they cooperate with other SMEs and set up labour pools, we performed an exploratory research on the formation of labour pools. The labour pools can be set up by SMEs in the same branch or in a cooperation chain. Our research shows that entrepreneurs require a lot of perseverance in developing a labour pool. It also appears that labour pools without commitment of public authorities are not effective.
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The presentation covers recent and current procurement management team research activities at Hanze university, notably SME procurement, sustainable procurement, and innovation procurement.
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from the article: Supply chain integration intensifies through digitalisation of business administration (BA) processes. However, it is unclear whether differences exist between the public and private sector in development or implementation of supply chain integration solutions. The large scope of the supply chain, being a large network of companies working together towards one end product, is limited for this study to e-procurement processes. The related software solutions are included. This study starts with a theoretical snapshot of e-procurement. This is followed by a process viewpoint of the e-procurement function. Next five different forms of e-procurement cooperation are presented seen from an actors network viewpoint. The utilisation of these forms create insight in the differences between the public and private sector in their e-procurement adoption behaviour. The process maturity scan results shows that the process maturity between the two sectors is comparable. However, this only explains the differences per sector concerning their ability to improve and control their processes in general. For reliability, this step is followed by three in-depth interviews combined with analyses of recent e-procurement behaviour studies involving the two sectors. The final step compares the maturity outcome with the in-depth data results. Both sectors show certain forms of coalition in the e-procurement. Where ‘competition’ is a construct that drives the private sector, the public sector has cost control as a driver towards collaboration and integration within e-procurement. This can only partially be explained by the past European financial crises. Differences are found in digital collaboration and the integration itself. The most important difference lies in the European tendering procedure to which the public sector (unlike the private) is restricted. In nature an e-procurement design and development project does not fit the prescribed procedures.
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The research concerned semi-dyadic relations in SMEs and large companies that managed innovative suppliers in New Zealand construction supply chains. It explored effects of (independent) company variables on (mediating) procurement management variables, and also the effects of these variable types on (dependent) procurement performance variables when managing innovative suppliers.Exploratory interviews (N=5) revealed that innovation procurement seemed professional and logical within their contexts.Survey I (N=112) revealed that most case companies followed a product leadership strategy, and were equally entrepreneurial to innovative customers and innovative suppliers. They were innovative and gave innovative suppliers a dominant innovation role. They seemed to prefer radical innovations less than incremental innovations, but still somewhat more than New Zealand averages. Companies had slight preferences for new, small, or foreign suppliers for radical innovations. Innovations with supplier interactions were more beneficial to the company and the natural environment, than innovations without supplier interactions. Higher company innovation-benefits could equal higher environmental innovation-benefits. This profile differed from the profile of average companies in the construction supply chain.Survey I found weak correlations among output performance variables and process or proxy performance variables.Dependent (procurement and performance) variables were affected differently. Conversely, independent (company and procurement) variables had different effects.Different from extant literature, Survey I found limited statistically-significant effects of company variables on procurement management variables, and of these two variable types on performance. A minority (41%) of company variables affected procurement variables; only two company variables (13%) affected performance; a minority (40%) of procurement variables affected performance.Product leadership and NPD/innovation experience affected performance. Moreover, trust, lifestyle strategies and survival strategies affected procurement variables. Conversely, 27% of performance variables (satisfaction on marketing & sales; benefits for the natural environment) and 30% of procurement variables (entrepreneurial orientation with innovative suppliers, relation intensity with manufacturers, and small vs large suppliers for radical innovations) responded stronger on some company variables. Company size (<99 versus >250 staff) had little effects.Innovating, opportunity-seeking and trust towards innovative suppliers, and relation intensity with innovative service providers had highest effects on performance. Conversely, 46% of the performance variables (satisfaction with innovative suppliers, benefits for natural environment and company) responded stronger on innovating, opportunities-seeking and trust variables.Survey II (N=33) identified 12 procurement best-practices that respondents used for specific supplier or innovation types.Causality should be treated cautiously. Findings reflected the inconclusive results from extant literature. The research provided a nuanced and varied understanding on management of innovative suppliers, on the effects of entrepreneurial orientation to innovative suppliers, on the limited effects of company size, on the complex relations between various performance measures, and on entrepreneurship as a theoretical lens in innovation procurement. Companies had several options on how they managed their innovative suppliers. Additionally, the company characteristics and context of in this nascent research domain could be more important than commonly assumed from extant research.
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Public procurement can contribute significantly to achieving sustainable development. The Dutch government has indicated that sustainable procurement is one of its priorities and has developed and installed a Sustainable Public Procurement Programme (SPPP). This essay reviews the current programme and assesses its actual contribution to sustainable development. Specific questions are raised with respect to both the set up and the content of the current decision criteria for supplier selection and contract provisions. This article argues that, so far, the focus on minimum requirements, the strict distinction between environmental and social criteria and the absence of specific long-term ambitions and a systems perspective have limited the actual contribution of the Dutch SPPP to sustainable development. Finally, ongoing discussions by involved stakeholders, with respect to suggested adjustments to the programme, are reviewed and linked to the assessment presented here. It is concluded that these discussions reflect promising trains of thought for the future of the Dutch SPPP.
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In Germany, public transport organizations are mainly owned by public authorities. Procurement in Hamburg involves the buses and infrastructure instead of transport services. The procurement process for buses and infrastructure is performed by the transport companies. Such processes must meet German and European public regulations. Therefore, public tender and procurement procedures for buying buses by German Public Transport Operators (PTOs) can be more complex and lengthier than procurement by private PTOs in other countries. As a result, the public transport companies are not primarily driven by profitability, but also by obligations towards the public and political aims. Obligations can comprise to provide affordable, environmentallyfriendly transport services for the citizens. In Hamburg, the public authority incorporates obligations (requirements) for the e-buses in their tendering documents. In Utrecht, as well as most of the rest of the Netherlands, public transport is carried out by private companies, under an operating contract (concession) with a public transport authority. In Utrecht, this authority is the province of Utrecht. The e-buses are the operators’ private property and they are obliged to account to the province of Utrecht for their implementation of public transport. When the province of Utrecht procures the operation of public transport services by means of a European tendering process, private transport companies can offer a bid for this tender. Both, the authority and operators, want to provide good public transport for their customers, but they both have different goals. The operators want to earn a reasonable profit margin on public transport, while the authority wants to fulfil certain public policy goals. The tendering process is where these two come together. It is a strong mechanism to get the best ‘value for money’ out of the market – for example, the most public transport, or the highest number of e-buses running in the area, within the available budget of the public transport authority.
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The Procurement Platform Groningen is a cooperation of 15 tendering authorities in the northern part of the Netherlands. The Platform requested Hanze to start a research project concerning the Social Added Value of the Platform’s spend. The first phase of this research has now been completed. This phase has resulted in more insight into the spend of the Platform. The subject of this working paper concerns one of the next steps in this research. How can tendering authorities stimulate innovation within SMEs through tenders below threshold values? Most of the Platform members’ spend is put to market through non-European tenders. This paper describes a theoretical research into Platform’s possibilities to encourage innovation in SMEs, by using tendering for contracts that are below the threshold value. The results of this research show that the Platform can use several tendering procedures.
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Inschrijvers en opdrachtgevers worstelen nog weleens met social return voorwaarden in aanbestedingen. Bij opdrachtgevers is vooral intern winst te behalen door betere communicatie tussen afdelingen. In deze blog enkele tips.
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