Procurement in humanitarian organizations: Body of knowledge and practitioner's challenges

Moshtari, Mohammad; Altay, Nezih; Heikkilä, Jussi; Gonçalves, Paulo

doi:10.1016/j.ijpe.2020.108017

Cited by 55 publications

(44 citation statements)

References 73 publications

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“…These corresponded to increasing internal awareness of the impact of financial performance in the aid organisation as funding for development aid programmes had recently declined. Similar to others in the not-for-profit sector, more than half of the operational budgets are observed to be disbursed from procurement (Falasca and Zobel, 2011;Moshtari et al, 2021). The least weighted criterion is the growth in consumption criterion.…”

Section: Prioritisation Of the Proposed Criteriasupporting

confidence: 54%

“…Donors play a central role in providing funds that are used to reduce constraints derived from lack of resources and capability, whereas private sectors act as suppliers producing products and services (hereafter commodities) used in a development programme (Sodhi and Knuckles, 2021). Commodities purchased can be construction materials, school kits, sanitation kits, medications, food, custom brokerage services and transport services, to name but a few (Moshtari et al, 2021). Such commodities or services are delivered following regular lead times, allowing for evaluations and bidding procedures to maximise available funds (Falasca and Zobel, 2011).…”

Section: Introductionmentioning

confidence: 99%

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A purchasing portfolio model for humanitarian supply chain resilience: perspectives from a development aid context

Bhusiri

Banomyong

Julagasigorn

et al. 2021

JHLSCM

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PurposeThe impact of supply disruptions from unplanned events can cause goods shortage, limited responsiveness and high opportunity cost thus compromising development aid programmes' achievement targets. These situations force humanitarian aid agencies to develop new strategies for effectively managing their supplies. The purpose of this paper is to illustrate the foundation of humanitarian supply chain resilience through the development of an adapted Kraljic portfolio model.Design/methodology/approachAction research was used to adapt and validate the Kraljic portfolio model to the development aid context. The research team worked with a humanitarian aid agency in developing criterions and used Analytical Hierarchical Process (AHP) in weighting those key criterions.FindingsThe adapted portfolio model was able to evaluate purchases done by the aid agency by incorporating different perspectives related to the strategic importance of purchase and supply vulnerability. In particular, development aid programmes require large supplies annually. Better classification offers improved visualisation of purchases, leading to a more precise adoption of mitigation strategies and policies to minimise supply disruption risks.Research limitations/implicationsAdapting the Kraljic portfolio model is a stepping-stone to building humanitarian supply chain resilience. The proposed humanitarian supply chain resilience framework is based on the foundation that current humanitarian supply chain needs to be re-engineered. In order to re-engineer, the supply base strategy must first be revisited.Practical implicationsMany aid agencies do not have a holistic view on their purchases and commonly apply a transactional classification of purchases that only considers the consumption values. Purchasing strategies mostly focus on cost minimisation, whereas risk mitigations have been disregarded. The proposed portfolio model overcomes these drawbacks. Societal impact may be limited but development aid agencies will be able to offer more reliable aid delivery as part of their mandate.Originality/valueThe proposed portfolio model is among the first tool to guide humanitarian aid agencies to develop procurement strategies to alleviate supply disruptions and increase development aid programmes resilience.

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Section: Prioritisation Of the Proposed Criteriasupporting

confidence: 54%

Section: Introductionmentioning

confidence: 99%

A purchasing portfolio model for humanitarian supply chain resilience: perspectives from a development aid context

Bhusiri

Banomyong

Julagasigorn

et al. 2021

JHLSCM

View full text Add to dashboard Cite

show abstract

“…Local procurement by humanitarian organizations is still challenging, due to the lack of product availability and lack of product standardization, among other reasons (Moshtari et al, 2021).…”

Section: Tenderingmentioning

confidence: 99%

Cutting through the aid reporting chaos: Recommendations for better procurement and reporting for WASH and beyond.

Fadhila¹,

Barquet²,

Dickin³

et al. 2022

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A lack of coherent tracking and procurement presents challenges to innovators in the fields of humanitarian aid and development. That means that international organizations are missing out on tools to help them with their work. Here we present an overview of the current situation, based on a literature review of donor organizations and interviews of innovators and aid/development organization actors. With this view, we make recommendations to improve the tracking systems to open the gates to innovation.

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“…Comparative work has emerged such as that of the International Research Study of Public Procurement (Brammer and Walker, 2011;Knight et al, 2012;Walker et al, 2012;Harland et al, 2019;Lynch et al, 2019) and work undertaken to understand the role of procurement in aid (Wild and Zhou, 2011;La Chimia and Trepte, 2019;Moshtari et al, 2021) as well as the descriptive and statistical information available from the OECD series ("Government at a Glance", 2019). Yet, some researchers conclude that there is still no hard evidence for cross-country learning, and that if it does exist, learning is only implicit, at least as it relates to cross-country learning on public procurement on sustainability and innovation (Nijboer et al, 2017).…”

Section: Evolving Procurement Policymentioning

confidence: 99%

Broader outcomes in procurement policy – a case of New Zealand pragmatism

Allen

2021

JOPP

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Purpose The purpose of this paper is to investigate how the underpinning ideas of public procurement allowed for broader outcomes – a more strategic form of public procurement – to emerge. The paper contributes to the literature on public procurement by empirically addressing the evolution of procurement as a government policy lever in New Zealand so as to demonstrate how policy pragmatism can ensure a shift without a complete overhaul of a complex system. Design/methodology/approach The paper has used a single country case study to examine a recent development in procurement policy. The objectives of the paper are achieved by adopting a unique conceptual framework connecting ideas, sensemaking and bricolage. Findings The paper provides empirical and conceptual insights about how bricolage, or policy pragmatism, aids in dealing with the constraints of ideational legacies. It demonstrates a particular form of targeting in procurement, common in public administration but not well understood in the procurement field. Research limitations/implications Single country case studies lack scientific generalizability. However, they add to the canon of knowledge that is lacking in the field of public procurement in this case. They also provide a stronger starting point for further research especially with respect to comparative studies. Practical implications The paper provides an excellent example of the development of procurement policy that is useful for procurement officials from other countries undergoing change or looking to update or create procurement policies. It shows a high-level process of implementation for government priority outcomes from a country well-known for its quality of public management and governance. Social implications New Zealand has significant equity issues especially as related to its indigenous population. Procurement is being used increasingly as a lever to improve equity. This article includes information about New Zealand's uptake of social procurement. Originality/value This paper fulfils a need for greater understanding of how policy is “put together” and the dynamics at major points of change or the implications of policy changes. To the best of the author’s knowledge, this case study of procurement policy in New Zealand is original, and the author is aware of no other similar work emanating from New Zealand in the academic journals.

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Procurement in humanitarian organizations: Body of knowledge and practitioner's challenges

Cited by 55 publications

References 73 publications

A purchasing portfolio model for humanitarian supply chain resilience: perspectives from a development aid context

A purchasing portfolio model for humanitarian supply chain resilience: perspectives from a development aid context

Cutting through the aid reporting chaos: Recommendations for better procurement and reporting for WASH and beyond.

Broader outcomes in procurement policy – a case of New Zealand pragmatism

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