• The Journal of Society for e-Business Studies
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• v.7 no.2
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• pp.129-141
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• 2002

This paper deals with the collaborative procurement process in a two-echelon supply chain that a manufacturing company and a contractor are connected through the information system. The real time information about inventory and production processing becomes available through this information system. We raise two issues related to the collaborative procurement process. First, we propose a VMI(Vendor-Managed Inventory) type of the procurement policy which focuses on the cost minimization for the total supply chain rather than individual companies. Second, based on the simulation study, we demonstrate that a collaborative procurement process is more cost-effective over classical procurement processes such as (Q, r). The result obtained in this paper can be applied to the quantitative evaluation of the cost saving effect when companies build the information sharing based, collaborative procurement system.

• STI Policy Review
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• v.6 no.2
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• pp.87-104
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• 2015

Public procurement for innovation is used as one of the major policy tools to stimulate innovation and promote growth of small and medium-sized enterprises (SMEs) in Korea. However, it is evaluated that this policy has not been so effective in promoting technological innovation among SMEs largely because it heavily depends on price competitiveness of SMEs products and services. In order to draw some policy implications, this study examines the PPI policies of selected countries as comparative references and conducts an empirical analysis on Korean Public Procurement Services (PPS) data for identifying challenges of the current policy in Korea. We conclude that in order to enhance technological innovations of SMEs, PPI policy in Korea should 1) focus more on the potential competitiveness of SMEs, 2) enlarge public demands especially on R&D services, 3) encourage private sector participation in the public procurement market, 4) improve the assessment criteria for public procurement market registration, and 5) restructure the responsible organizations.

• KDI Journal of Economic Policy
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• v.46 no.2
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• pp.21-43
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• 2024

This paper provides a new theoretical rationale for public procurement for innovation (PPI), a unique policy encouraging public procurers to purchase innovative products. In contrast to existing studies that primarily emphasize the advantages of PPI, this paper takes a comprehensive approach, examining both the costs and risks associated with PPI, alongside its benefits. It finds a general condition under which PPI outperforms traditional public procurement. Under this condition, this paper demonstrates that PPI enhances social welfare by facilitating optimal risk-sharing between public procurers and the general economy. Additionally, it draws policy implications from a comparative analysis between the current PPI policy in Korea and an optimal PPI policy.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.19
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• pp.7-31
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• 2003

The governments of almost countries have the rules and procedures that the purchasing entities have to follow, in order to ensure that the best value for money spent is obtained in procuring goods and services. However, there are often some of important problems in their rules relating to government procurement. Namely, almost countries have a variety of discriminatory regulations for foreign suppliers in the government procurement laws with the object of national security, economic welfare, and protection of domestic market from international competition. For this reason, several advanced countries had reached the Plurilateral Agreement on Government Procurement during Tokyo Round(1973-1979) and Uruguay Round(1986-1994). However, the provisions of two agreements do not apply to all products made by the government but only to those made by purchasing entities specified by each member country in its list in the Appendix. Accordingly, the size of goods and services purchased from foreign suppliers were comparatively not large. As we know well, the United States have spent a large amount of money from federal and state government budget. But the portion of procurement from foreign suppliers is still small, compared with the portion of procurement from domestic suppliers. The main reason are that U.S. has applied for long time the so-called Buy American Act to government procurement positively and maintained many kinds of other domestic regulations which have discriminatory provisions for foreign goods and foreign suppliers. On the recognition of these points, this thesis deals with the Buy American Act and other U.S. domestic laws, regional and bilateral, and plurilateral agreements including WTO Agreement on Government Procurement. As a result, the author found that there are several concerns and problems in the U.S. regulations relating to government procurement. It include the provisions on priority procurement of U.S.-produced products, local contents requirements, set-aside procurement from small business, and exclusion of preferential procurement from the developing countries.

• Journal of Distribution Science
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• v.16 no.9
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• pp.43-52
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• 2018

Purpose - This article accentuates that there is pervasive corruption in the supply chain and procurement of goods and services in the South African public sector, particularly in the local sphere of government. Consequently, the poor and the indigents who are supposed to receive quality services are affected. Therefore, the article emphasizes the need to strengthen compliance in the supply chain and procurement processes in order to combat corruption. Research design, data, and methodology - This article extensively utilized qualitative literature review approach to address and solve the problem of endemic corruption in the supply chain and procurement being perpetrated by local government officials. Results - The synthesis shows that by strengthening compliance of supply chain and procurement strategies, measures and frameworks, the likelihood of corruption will be drastically reduced if not totally eradicated. It demonstrates that the poor and the indigents who are supposed to receive quality services are being denied due to corruption. It also shows that failure to comply should result to enforcement of punitive sanctions against perpetrators. Conclusions - This study indicates that effective and efficient implementation of supply chain and procurement strategies, measures and frameworks are panacea for curbing corruption in South Africa public sector especially at the local sphere of government.

• Journal of the Korea Institute of Building Construction
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• v.12 no.3
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• pp.340-346
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• 2012

Recently, the construction industry has been pursuing the rationalization of its various systems through informatization. Procurement is a highly important element of the construction process, as it is directly related to the cost and quality of a construction project. In addition, procurement management of resources is in an indivisible relation, so that it is significant to link each other effectively. This study proposed construction activity and basic data connected to cost summary work for the categorization and utilization of resources. This study connected that activity to detailed items of material and labor cost, and proposed a procurement planning model of resources by activity that can utilize all resources and information. In addition, this model can classify resources and information by various forms. We found that the utilization of this procurement planning model will be higher because it can grasp various problems that occur in the passive procurement and provide additional functions that can be modified.

• Plant Journal
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• v.5 no.3
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• pp.59-65
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• 2009

In the plant EPC project, the procurement work can be considered as the most important part that affects the success or failure of project as it has the closest mutual influence in every execution process of the project. Procurement takes up generally 60% ~ 70% of the entire project budget and the current trend of plant EPC project becoming larger in scale and a variety of process technology being applied. So, it is needed to identify the risks that are expected to occur according to the stages of procurement work, namely, proposal stage, manufacturer selection and purchasing agreement stage, expediting the process management of manufacturer stage, inspection stage and logistics & transportation stage. The management of observation and control of the risks should be performed with the response techniques which are 'avoid',' transfer'and' mitigate'.

• Journal of the Korean Society of Systems Engineering
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• v.14 no.1
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• pp.52-62
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• 2018

A software support system, called procurement engineering management support system (PeMSS), is currently under development through a joint research project. The procurement-related scenarios considered in this research is as follow: an EPC (Engineering, Procurement and Construction) company receives an EPC project contract and starts the project to deliver the agreed system to the acquirer. In order to acquire the required equipments that the EPC company does not produce by itself, it eventually interacts with subcontractors, also called vendors. The EPC company responsibilities during the procurement activities are twofold. First, the EPC company has to guarantee that it has ordered the equipment, through issuing Purchase Order (PO), based on the requirements stated in the contract. Second, the EPC company has to verify that the received equipment designs, called Vendor Print (VP), meet the specifications in the PO, before finally acquiring the equipments. During our survey study, we discovered that EPC company takes a lot of time and effort to create PO and verify VP, mainly because these activities are performed manually by the responsible engineers. Therefore, we intent to support the above activities by developing a support system to the legacy procurement system that can trace the requirements from the contract to the PO and VP, among other functionalities. At the time of the writing of this paper, PeMMS is still under-development, thus, in this paper we focus on presenting the development steps of PeMMS using systems engineering theory and introducing the PO creation function. Wholly, PeMSS attempts to reduce the time and effort of engineers on the procurements activities while also increasing the quality of the procurement outcomes.

• Journal of Technology Innovation
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• v.31 no.3
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• pp.201-230
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• 2023

The Innovation Procurement Policy was introduced as part of the strategic public procurement policy to improve firms' innovation capabilities and enhance the public sector's ability to solve social problems by designating and purchasing so-called 'innovative products.' The pilot procurement project for innovative products was first introduced in 2019, and the policy system for designating and discovering innovative products by government departments, as well as the priority purchase system, was established in 2020. Hence, this study conducted a quantitative analysis focusing on the effectiveness of the innovation procurement system in supporting firms after it was fully implemented. For this purpose, corporate financial and employment data from 2017 to 2021 were used, and propensity score matching(PSM) and difference-in-difference(DID) methods were utilized as analytical tools. The study found that the innovation procurement system contributed to corporate growth and employment and created additional public and private sales channels. Moreover, it is necessary to enhance the innovation procurement system, such as matching innovative product-producing companies with existing SME support policies, for companies to become self-sustaining after the innovative product designation ends.

• Journal of Chest Surgery
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• v.55 no.4
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• pp.277-282
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• 2022

Lung transplantation is a life-saving procedure in patients with end-stage lung disease. However, it inherently depends on the availability of donor organs. The selection of suitable lungs for transplantation, management of donors to minimize further injury and improve organ function, and safe procurement remain critical for successful transplantation. In this review, we provide an update on the current understanding of donor selection, management, and lung procurement.