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2018 | OriginalPaper | Buchkapitel

8. Costs and Agile Procurement

verfasst von : Bernardo Nicoletti

Erschienen in: Agile Procurement

Verlag: Springer International Publishing

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Abstract

Business processes largely determine the costs also in procurement organizations. This chapter examines in detail the methods of lean thinking. It introduces the principle of leanness and looks in detail at the main tools available to eliminate waste. The chapter discusses value stream mapping, kaizen, kanban, just-in-time, SIPOC, autonomation, and heijunka. It stresses in particular the importance of improvements in the lean thinking method itself, such as Lean Six Sigma, lean and digitize, and leagile. The latter method is a combination of lean thinking and agile methodologies. It allows for a bimodal mode of management and operations of procurement, applying the best of both methods to different parts of the organization processes.

The last part of the chapter examines procurement finance. This is a development with respect to the traditional trade finance and supply chain finance. It extends the consideration to all procurement processes and their financing.

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Vorheriges Kapitel Resources and Agile Procurement

Nächstes Kapitel Conclusions for the Agile Procurement Processes

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See endnote 1.

Hence the importance of the recent trend towards contracts for multiskill resources as well.

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Nicoletti, B., (2012), Lean and Digitize: An Integrated Approach to Process Improvement. Gower Publishing, Farnham, UK. ISBN-10: 1409441946.

This section is a reworking of the concepts in the book: Rother, M., and Shook, J. (2009), Learning to see. Mapping the value network to create value and eliminate waste, The Lean Enterprise Institute, Cambridge, MA.

The Forrester effect, also called the whip effect, is defined in Wikipedia as a distribution channel phenomenon in which forecasts create supply chain inefficiencies. It refers to increasing variations in inventory in response to variations in the customer demand as one moves further up the supply chain:

Symptoms of the Forrester found by Hau Lee and Corey Billington (Lee, H. L., and Billington, C. (1992). Managing supply chain inventory: pitfalls and opportunities. Sloan management review, 33(3): 65 are:

an excessive level of stocks, especially upstream of the production chain;
ineffectiveness of frequent or constant sales forecasts;
sudden changes in demand for capacity (which is sometimes insufficient and sometimes excessive);
frequent backlogs;
frequent changes to production plans.

It is not necessary that all these symptons be present. One or fewer are sufficient.

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See endnote 15.

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Mason-Jones, R., Naylor, B., and Denis, R.T. (2000). Engineering the leagile supply chain. International Journal of Agile Management Systems, 2(1): 54–61.

Naylor, B.J., Naim, M.M., and Berry, D. (1999). Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain. International Journal of Production Economics, 62(1): 107–118.

Christopher, M., and Towill, D. (2001). An integrated model for the design of agile supply chains. International Journal of Physical Distribution Logistics, 31(4): 235–246.

See endnote 15.

Christopher, M. (2000). The agile supply chain-competing in volatile markets. Industrial Marketing Management, 29(1): 37–44.

See endnote 24.

Goldsby, T.J., Griffis, S.E., and Roath, A.S. (2006). Modeling Lean, Agile and Leagile Supply Chain Strategies. Journal of Business Logistics, 27(1): 57–80.

Feitzinger, E., and Lee, H.L. (1997). Mass Customization at Hewlett-Packard: The Power of Postponement, Harvard Business Review, 75(1): 116–121.

Barlow, J. (1999). From Craft Production to Mass Customisation. Innovation Requirements for the UK Housebuilding Industry. Housing Studies, 14(1), 23–42.

See endnote 29.

Van Hoek, R.I. (1998). “Measuring the unmeasurable”-measuring and improving performance in the supply chain. Supply Chain Management: An International Journal, 3(4): 187–192.

See endnote 27.

See endnote 32.

Pagh, J. D., and Cooper, M.C. (1998). Supply Chain Postponement and Speculation Strategies: How to Choose the Right Strategy, Journal of Business Logistics, 19(2): 13–33.

Mason-Jones, R., and Towill, D.R. (1999). Total cycle time compression and the agile supply chain. International Journal of Production Economics, 62(1): 61–73.

See endnote 31.

See endnote 1.

Ma, M., and Morris, L. (2017). The Agile Innovation Sprint. International Management Review, 13(1): 92.

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Timmers, P. (1998). Business models for electronic markets, Electronic markets, 8(2): 3–8.

See endnote 44.

Chang, H.H., and Wong, K.H. (2010). Adoption of e-procurement and participation of e-marketplace on firm performance: Trust as a moderator, Information Management, 475(6): 262–270.

ECOM Group (2002). e-Procurement in the UK Public Sector: A Guide to Developments and Best Practices, A CIPFA e-Government Forum Report. London, UK, Feb.

Kpmg (2001). University of California Office of the President System-Wide E-Procurement Assessment and Strategy Recommendation. Berkeley, CA.

Birks, C., Bond, S., and Radford, M. (2001). Guide to e-Procurement in the Public Sector: Cutting through the Hype. London, UK: Office of Government Commerce, HMSO.

Vaidya, K., Sajeev, A.S.M., and Callender, G. (2006). Critical Factors That Influence E-Procurement Implementation Success in the Public Sector, Journal Of Public Procurement, 613: 70–99

Nicoletti, B. (2013). Cloud Computing and Financial Services, Palgrave-Macmillan, London, UK.

Directive 2001/115/Ec. http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2002:015:0024:0028:EN:PDF, Accessed 24 April 2017.

Navatte, P., and Bironneau, L. (2017). La mise en place d’un marché interne du capital au sein de la chaîne logistique: un nouveau défi. Logistique & Management: 1–11.

http://www.sdcexec.com/article/12247812/supply-chain-finance-on-the-blockchain-enables-network-collaboration, Accessed 3 March 2017.

Templar, S., Findlay, C., & Hofmann, E. (2016). Financing the End-to-end Supply Chain: A Reference Guide to Supply Chain Finance. Kogan Page Publishers, London, UK.

Adapted by the author from More, D., and Basu. P. (2013). Challenges of Supply Chain Finance, Business Process Management Journal, 19(4): 624–647.

Nicoletti, B. (2017). The Future of Fintech, Palgrave-Macmillan, London, UK.

Lodefalk, M. (2017). Servicification of firms and trade policy implications. World Trade Review, 16(01): 59–83.

Kowalkowski, C., Gebauer, H., Kamp, B., and Parry, G. (2017). Servitization and deservitization: Overview, concepts, and definitions. Industrial Marketing Management.

Recor, J., and Xu, H. (2017). GRC Technology Fundamentals. In Commercial Banking Risk Management (pp. 333-392). Palgrave Macmillan US, New York, NY.

https://issuu.com/supplydemandchainfoodlogistics/docs/sdc0916, Accessed 20 April 2017.

When the buyer’s cash is used to finance the vendor, the practice is called dynamic discounting. Functionally it is the same as procurement finance.

http://www.sdcexec.com/article/12247812/supply-chain-finance-on-the-blockchain-enables-network-collaboration, Accessed 20 April 2017.

Christopher, M. (2005). Logistics and supply chain management: creating value-adding networks. Pearson Education, London, UK.

Lysons, K., and Farrington, B. (2006). Purchasing and supply chain management. Pearson Education, London, UK.

Bryant, C., and Camerinelli, E. (2014). Supply Chain Finance: EBA European market guide, European Banking Association, Paris, France.

Agrifac (2014). Agrifac. Opgeroepen op September 30, 2014, van Agrifac: http://www.agrifac.com/, Accessed 09 April 2017.

Jansen, J. (2016). Supply Chain Finance. Vestnik (Chelyabisnsk State University).

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Titel: Costs and Agile Procurement
verfasst von: Bernardo Nicoletti
Verlag: Springer International Publishing
Buch: Agile Procurement
Print ISBN: 978-3-319-61081-8

Electronic ISBN: 978-3-319-61082-5

Copyright-Jahr: 2018
DOI: https://doi.org/10.1007/978-3-319-61082-5_8

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