Cooperative purchasing in the public sector

Schotanus, Fredo; Walker, Harvey; Kivistö, Timo; Eßig, Michael

doi:10.4324/noe0415394048.ch22

Cited by 15 publications

(31 citation statements)

References 31 publications

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“…Typical disadvantages are set-up costs, coordination costs, loosing flexibility, loosing control, supplier resistance, and possible interference by anti-trust legislation (Schotanus, 2005a). The advantages of cooperative purchasing outweigh the disadvantages for many situations in the public and private sector as is discussed later on in this paper.…”

Section: Introductionmentioning

confidence: 99%

“…Intensive forms of cooperative purchasing ask for more organisational similarities and mutual communication. Therefore, for intensive forms, the coordination costs are higher and the total number of members is lower than for non-intensive forms (Schotanus, 2005a).…”

Section: Programme Groupsmentioning

confidence: 99%

“…(Nollet and Beaulieu, 2003) Number of joint activities low med-high med low med Number of members low-med high low-med low low 7. Life span of the group (D'Aunno and Zuckerman, 1987;Johnson, 1999;Nollet and Beaulieu, 2003) Expected life span of the group low-med high high low high Note: The subdimensions are based on: gains and costs (Nollet and Beaulieu, 2003), complexity (Johnson, 1999), independency (Essig, 2000), intensiveness (Klein Woolthuis, 1999;Williams, 2005), devoted resources Nollet and Beaulieu, 2003), formalisation (Ball and Pye, 2000;Dyer and Singh, 1998;Johnson, 1999), free riding prevention (Dyer and Singh, 1998;Johnson, 1999), savings allocation mechanisms (Heijboer, 2003;Schotanus, 2005b), self-management and decentrality Williams, 2005), control (Schotanus, 2005a), joint decision making (Laing and Cotton, 1997), standardisation , committed members (Williams, 2005), coterminosity (Exworthy and Peckham, 1998), homogeneity of demand (Bakker et al, 2007;Rozemeijer, 2000), and number of members (Bakker et al, 2007;Nollet and Beaulieu, 2003). a Characteristics of subdimensions that differ from the subdimension above b Can also be defined as joint meetings, control, decisions by all members, and/or decentrality c For instance, uniformity of organisational structure, size, policy, market, and life span Based on Table 2, it is noticed that within the forms of cooperative purchasing several differences may exist.…”

Section: A Typology Of Organisational Forms Of Cooperative Purchasingmentioning

confidence: 99%

“…The larger the organisation, the less profitable it will be to piggy-back on another's contract as more specific contracts are often necessary. Small organisations are usually involved with third party purchasing and piggy-backing (Quayle, 2002), as they lack economies of scale on their own (Schotanus, 2005a).…”

Section: Programme Groupsmentioning

confidence: 99%

“…Allowing others to piggy-back even involves some costs for the host, such as extra negotiation costs. Therefore, to make a piggy-backing group work on the long term, the host should preferably receive some compensation (Schotanus, 2005a). …”

Section: Piggy-backing Groupsmentioning

confidence: 99%

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Developing a typology of organisational forms of cooperative purchasing

Schotanus

Telgen

2007

Journal of Purchasing and Supply Management

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113

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This paper develops a typology for purchasing groups. In the typology, five ideal forms of cooperative purchasing are distinguished based on seven main dimensions. The forms are positioned in a matrix according to two distinguishing dimensions. These two dimensions are the 'influence by all members on the group activities' and the 'number of different group activities'. Underlying the two-dimensional matrix, there are five other dimensions that do not distinguish all forms from each other, but further detail the forms of cooperative purchasing. The typology can serve as a guideline for purchasing groups when a suitable organisational form needs to be chosen. In a suitable form, the dimensions of a group fit the circumstances. For all groups, it is recommended to find this best fit. This is something in which the typology may help. The paper concludes by emphasising the importance of clearly defining and positioning studied forms, because different forms imply different research models and have different advantages, disadvantages, and critical success factors.

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Section: Introductionmentioning

confidence: 99%

Section: Programme Groupsmentioning

confidence: 99%

Section: A Typology Of Organisational Forms Of Cooperative Purchasingmentioning

confidence: 99%

Section: Programme Groupsmentioning

confidence: 99%

Section: Piggy-backing Groupsmentioning

confidence: 99%

See 3 more Smart Citations

Developing a typology of organisational forms of cooperative purchasing

Schotanus

Telgen

2007

Journal of Purchasing and Supply Management

Self Cite

113

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show abstract

Impacts of sequential acquisition, market competition mode, and confidentiality on information flow

Hao

Jiang

Wang

2018

Naval Research Logistics

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We investigate information flow in a setting in which 2 retailers order from a supplier and sell to a market with uncertain demand. Each retailer has access to a signal. The retailers can disclose signals to each other (horizontal information sharing), while the supplier can solicit signals by offering retailers differential payments as incentives for signal disclosure (vertical information acquisition). In the base setting, market competition is in quantity, and a retailer can fully infer the signal that the other retailer discloses to the supplier. We show that the supplier prefers to sequentialize the procedure for information acquisition. Moreover, vertical information acquisition by the supplier is a strategic complement to horizontal information sharing between the retailers to establish information flow. In the equilibrium, the retailers have no incentive to exchange signals, but system wide information transparency can be realized through a combination of information acquisition and inference. We further study the signaling effect, whereby the supplier utilizes wholesale pricing as an instrument to affect the retailers' inference of the shared signals, and price competition to explore their impacts on the supplier's preference for sequential acquisition and the sustainability of information flow. KEYWORDScooperative decision, inference, information sharing, market competition, signaling 1 Naval Res Logistics 2018;65:135-159 wileyonlinelibrary.com/journal/nav

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Organizing Public Procurement

Schotanus

2023

Public Procurement

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This chapter introduces organizational structures for public procurement and explains that the procurement function of any organization is broad and involves more than the procurement department. It discusses several options that public organizations have for organizing their procurement function, depending on their maturity and organizational coherence. For example, coordinated purchasing is a common organizational form for small public organizations, whereas center-led purchasing might be more suited for larger public organizations. Both forms can facilitate the transition to sustainable and social public procurement, using among other things a central sustainable procurement policy and guidelines, offering resources, and sharing best practices. This chapter ends by zooming in on joint procurement as a specific organizational form for cooperating public organizations. It presents four types of joint procurement (Hitchhiking, Bus Ride, Carpooling, Convoy, and Formula 1 Team) and explains that simple forms of joint procurement can be used for commodities and simple or non-emotional tenders and more intensive forms of joint procurement are more suitable for complex tenders.

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Cooperative purchasing in the public sector

Cited by 15 publications

References 31 publications

Developing a typology of organisational forms of cooperative purchasing

Developing a typology of organisational forms of cooperative purchasing

Impacts of sequential acquisition, market competition mode, and confidentiality on information flow

Organizing Public Procurement

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