Supply Chain Management (SCM) has an overwhelming impact on firms as it directly impacts on sales and costs. Therefore, it must be a core competency for any organization and thus SCM expertise is highly valued in organisations. Procurement of goods and services has a major impact on the successful execution of the project. Procurement can help the business, ensuring that all the goods and services they buy will be of the right quality, quantity and price, and they will be delivered ‘just in time’. The application of procurement policies and practices, using fair and open procedures, is crucial not only for attracting efficient contractors and suppliers, but also to safeguard the principle of accountability and the cost-effective use of funds. Before awarding a tender, there is a substantial amount of work to be undertaken by the project manager, contracts manager, end user, buyer, and authorising committees. Commitment from personnel involved in contract awarding is not adequate. Furthermore, the Eskom governance process sometimes contributes to delays in awarding a contract. before the enquiry and tender documentation is sent out to the suppliers on the tender list, the core team involved in the procurement process verifies that the enquiry is complete and correct. Should there be contractual or legal issues during the execution of the project in the form of say a contract that has been issued with unsuitable clauses, solving the problem becomes difficult. Contractors will sometimes use contract clauses to suit themselves, and take advantage of the employer, causing cost overruns due to the difficulties in managing the contract. Eskom’s commercial activities are governed by the Public Finance Management Act (PFMA) and Constitution of South Africa, which states that an organisation such as Eskom should have in place “an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive, and cost-effective.” This can eliminate irregularities in contracts, since they can have a serious economic impact, interfere with fair competition, and destroy confidence in the integrity and functioning of public administration Such irregularities may lead to costs overruns on projects where incompetent contractors are awarded a contract. Incorrect financial forecasting is a very serious issue, and needs to be addressed in order to help strengthen the cash flow and forecasting within Eskom. This research strategy is intended for quantifying observations of human behaviour, with the emphasis on exact measurements. The primary data for this study was generated through the administration of a structured questionnaire survey conducted among engineers, project managers, contract managers, and forensics personnel. The secondary data for the present study was gathered from literature in the form of open ended questionnaire from the same personnel. Poor commitment of buyers and chain approval meetings being shifted affect the delays in awarding of contracts. Lack of training of contract managers, absence of legal representative’s advice and squad checking meetings not being represented properly contributes to contracts being awarded with unsuitable clauses. Managers specifically forcing contracts to be awarded to a specific contractor, nepotism or favoritism, politics and contractor greediness, relate to irregularities in contracts. Lack of experience, revision of scope (unclarified scope), project delays, less effort being made when forecasting and unforeseen circumstances, such as strikes, and forces of nature, relate to incorrect financial forecasting. Continuous training and commitment of all personnel involved in the project environment is important, therefore Eskom personnel in the project environment should work as a team in an integrated way. Adequate time should be spent, and thorough checks made, to ensure that documents sent out for tendering conform to requirements. Involvement of all the supporting functions must be maximised. Code of ethics training and application is very crucial in the project environment, and the current governance policies should be adhered to by all stakeholders in the project.

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The main proposition of this study is to examine Volvo Powertrain's procurement ofproduction equipment in order to find solutions that can prevent delays in futureprocurements. The conditions of the case leads to the theoretical field of supplierdevelopment, which emphasizes the advantages of closer collaborations between thebuying company and their supply chain. Through focus groups with Volvo-personneland interviews with supplier representatives, a step-by-step examination is made ofprior procurement projects. The knowledge generated from the examination is theninterlaced with theory concerning supplier development, which results in a line ofconclusions of Volvo Powertrain’s procurement process and the possibilities to takesupplier development into consideration for future procurements. Finally,recommendations to Volvo Powertrain is provided in the form of an updatedprocurement model called Volvo Equipment Procurement Model.

Abstract When multinational enterprise invested into the worldwide with its huge economic scale, well-organized structure and excellent skill of Supply Chain Management were used as competed resources in the global economic environment. It helps business growing and profit increasing. However, a capable skill of Supply Chain Management relay on a precise Procurement Management System, especially the ability of evaluation and management. The purposes of this study are to discover the key factors for the multinational enterprise evaluated suppliers, summarize those key factors and offer a bunch mark as reference for the Taiwanese enterprise. To be a top supplier of those multinational enterprise not only bring the rich profit, strong business foundation and fast growing, but also got a very good learning chance to become a multinational enterprise. This research discovered several important factors when a multinational enterprise evaluated their suppliers; 1.Technical Skill - Suppliers own a Research and Development team. 2. Quality - Certifications is necessary. 3. Feed Back and Service - Customer requirements response within 24 hours. 4. Delivery - Reduce the lead-time of delivery products. 5. Cost - Reduce the cost from the product re-design. 6. Environment Protection - Products contain environment protection concept. 7. Business Management - Supply the products steadily. 8. Globalization - Globalization of supply services. 9. Politics and Culture - Steady politics and diligent people.

Procurement is the acquisition of goods or services at the best possible total cost of ownership, in the correct quantity, at the correct time, in the correct place for the direct benefit or use of corporations, governments or individuals (Procurement 2005). Electronic procurement is the fulfillment of the procurement function by use of the Internet and new technologies to facilitate a seamless, end-to-end stream of strategic procurement activities enabling improved responsiveness and analysis within the procurement organisation (Wheatley 2003). The aim of the study was to identify the effectiveness and efficiency of the current procurement processes in place at UTi Domestic and to investigate the feasibility of using Electronic Procurement as a possible mechanism for Business Process Re-Engineering within UTi Domestic, to streamline and add value to the overall procurement function. This study was undertaken at UTi domestic in Johannesburg. Questionnaires were used to collect data. In total, twenty-eight procurement staff members and six management members completed separate questionnaires. One hundred percent response rate was achieved for both groups. The procurement staff completed a structured questionnaire while management were asked unstructured questions. Data obtained from the questionnaires were analysed using the Statistical Package for the Social Sciences (SPSS). The findings of the study indicated that the procurement process at UTi Domestic was inefficient and ineffective. The procurement process was in need of redesign. Controversy existed between management and procurement staff over whether e-procurement would be the solution to the procurement problem. The researcher recommended the implementation of an e-procurement solution as a resolution to the procurement problem, based on the value potential of the solution and the ability of the solution to positively satisfy all of the aims of the study. As supported by the literature, e-procurement can make a significant difference to UTi Domestic. / Thesis (MBA)-University of KwaZulu-Natal, Westville, 2006.

Thesis (M.S.)--State University of New York at Binghamton, Thomas J. Watson School of Engineering and Applied Science, Department of Systems Science and Industrial Engineering, 2009. / Includes bibliographical references.

Thesis (MComm)--Stellenbosch University, 2008. / ENGLISH ABSTRACT: The role of the traditional purchasing department has evolved significantly over the last decade into a competitive value adding procurement function within an organisation’s lean supply chain model. It has become a necessity to work with the suppliers to provide flexible, accurate, effective and cost effective goods and/or services (Barla, 2003; Ellram, 2002). In addition organisations are developing and utilising new business models geared towards improving both the balance sheet and the income statement to respond to external forces and new market opportunities. The change in business model places additional emphasis on leveraging increased innovation from suppliers, thus having a vast impact on supply management to such an extent that organisations are creating strategic relationships (Carter et al., 2007). In this paper, the supplier relationship management model will be studied under lean philosophy as to address the focal point – sustainable procurement. The paper will consist of three main areas: Supplier relationship management – Literature study Supplier relationship management – Case study Supplier relationship management – Operational tool Supplier relationship management – Literature study will address the theoretical methodologies, best practices, benefits and advantages, etc. Supplier relationship management – Case study will showcase a South African multi-national FMCG1 manufacturer’s methodology as well as the benefits of utilising a supplier relationship management approach to procurement. Supplier relationship management – Operational tool will be a practical tool developed for evaluating and facilitating supplier relationship management in an African context. The end result of the paper should be a feasible solution to prolonging the impact of procurement, thus increasing sustainability in the maturity stage of procurement’s life span in the typical product life cycle model (Canny Buyer, 2007). 1 Fast Moving Consumer Goods (“FMCG”) are products that have a quick turnover and relatively low cost (Wikipedia, 2007a). / AFRIKAANSE OPSOMMING: Die tradisionele rol van die aankope department binne ‘n organisasie het oor die laaste dekade merkwaardig verander en word nou bedryf as ‘n kompeterende waardetoevoegende skakel binne die organisasie se voorsieningsketting. Terselfdetyd het dit noodsaaklik vir leweransiers en organisasies geword om op ’n geïntegreerde wyse te werk te gaan om meer akkurate en koste-effektiewe goedere en/of dienste te lewer (Barla, 2003; Ellram, 2002). Organsisasies is ook genoodsaak om nuwe innoverende besigheidsmodelle te ontwikkel om ten beste eksterne besigheidsfaktore en nuwe markgeleenthede aan te spreek ten einde beide die balanstaat sowel as die inkomste staat positief te impakteer. Hierdie kardinale veranderinge in die besigheidsmodel van organisasies lei daar toe dat addisionele druk op leweransiers geplaas word om met innovasie navore te kom. Op sy beurt plaas dit verdere druk op die voorsieningsketting, selfs tot so ’n mate dat dit die organisasie noop om na die moontlikhede van strategiese vennootskappe te ondersoek (Carter et al., 2007). Die skryfstuk gaan leweransiers verhoudingsbestuurmodelle evalueer en bestudeer binne ‘n voorsieningsketting om sodoende die vraag na volhoubare verkryging te beantwoord. Die skryfstuk sal uit drie fokusareas bestaan, naamlik: Leweransiers Verhoudingsbestuur – Literatuurstudie Leweransiers Verhoudingsbestuur – Gevallestudie Leweransiers Verhoudingsbestuur – Bedrysmodel Leweransiers Verhoudingsbestuur – Literatuurstudie sal die teoretiese metodologie, die vooren nadele van leweransiers verhoudingsbestuur aanspreek. Leweransiers Verhoudingsbestuur – Gevallestudie sal ‘n studie loots binne die verhoudingswerkinge binne ‘n Suid-Afrikaanse multi-nationale maatskapy wat in die vinnige verbruikersgoederemark betrokke is. Leweransiers Verhoudingsbestuur – Bedrysmodel sal ’n praktiese voorstel vorendag bring om ’n leweransiersverhouding meer doeltreffende te bestuur in Afrika. Die eindresultaat van die skryfstuk sal dus ’n lewens vatbare oplossing wees om die volhoubare impak van verkrying te verleng in die volwasse stadium van ‘n produk se lewensiklus (Canny Buyer, 2007).

The main research problem addressed in this study was to determine the key factors required by purchasing and supply departments in the automotive manufacturing industry to be efficient and effective. To achieve this objective, it was necessary to identify five sub-objectives which were, firstly, to determine the extent to which the purchasing and supply departments in the automotive industry believe that certain key factors in pricing, quality and supplier management are required to achieve excellence. Secondly, to identify if the purchasing and supply departments in the automotive industry actually implement the key factors on pricing, quality and supplier management in practice. Thirdly, to determine if there are any additional factors other than these key factors that business firms regard as key factors to be classified as worldclass purchasing and supply departments. Fourthly, to analyse why purchasing and supply departments in the automotive manufacturing industry do not always implement these key factors. Lastly, to identify any other factors that could have a significant negative impact on the performance of purchasing and supply departments. The study commenced with an analysis and review of relevant literature from various text books, journals, publications and internet sources. The literature study covered issues such as price determination, cost management, basic negotiation strategies, managing supplier quality and the supplier base, as well as a general overview of the latest developments in purchasing and supply management in business. The purpose of the literature analysis was to establish a theoretical basis for the design of the questionnaire which was used as a research instrument in this study. A survey was conducted among selected automotive assemblers and their first and second tier manufacturing suppliers in the automotive industry. The main areas of focus in the questionnaire were pricing, quality, and supplier management. As the questions in the questionnaire related to the purchasing and supply department of a business firm, a qualified and experienced buyer in the purchasing and supply department was identified in each firm to complete the questionnaire. The empirical results from the study conducted indicated that the respondents were in strong agreement with the proposed importance of the factors of pricing, quality, and supplier management required to achieve xcellence. However, the respondents also indicated that there were various obstacles which prevented the firms from implementing these key factors. Some of the obstacles mentioned were long lead times, late deliveries from suppliers, too few competitors in the market place, supplier capacity constraints and the sustainability of suppliers. Additional obstacles that the study identified were the high workload of buyers in general, incompetent staff and insufficient manpower that affected the performance of a purchasing and supply department. The buyers were not only performing buying activities, but were also involved in logistics related activities, which increased their workload and negatively affected their performance. Lack of specialised purchasing and supply chain knowledge was identified as another obstacle to achieving excellence. The empirical study highlighted some recommendations to assist purchasing and supply departments in the automotive industry to achieve excellence and become world-class departments. Examples of these recommendations are that suppliers need to be educated on how to understand their costing models and to check their own sustainability; local purchasing and supply departments require training in the purchasing skills such as incoterms, delivery times, minimum and maximum order quantity; as well as the payment terms. Buyers should be trained to become experts in their products and packaging, as well as the manufacturing process of the product they are purchasing The business firm should only employ qualified buyers who have financial and administrative skills, as well as the ability to adapt to change and work in teams. Buyers also need to master the in-house systems and work procedures involved in purchasing a product. The empirical study also identified that the majority of buyers in the automotive manufacturing industry are senior buyers, male in gender and between the ages of 40-49. The implementation of the recommendations based on the study’s empirical findings will assist in improved pricing, quality and supply management in the automotive manufacturing industry.

No contexto atual de competitividade e racionalização nos negócios, a maioria das organizações não dispõe de todos os recursos necessários para a realização de seus projetos, requerendo a participação de fornecedores de materiais, equipamentos, serviços, sistemas, soluções e, até mesmo, de todo o projeto. Isto faz com que a escolha da modalidade de contratação mais adequada a cada item ou pacote a ser adquirido no mercado tenha efeitos determinantes sobre os prazos, custos, qualidade, riscos e esforços, podendo contribuir significativamente para o sucesso do projeto. Como esta escolha geralmente é feita com base nas regras de uso das modalidades, as opções acabam se restringindo a modalidades cujas regras são mais conhecidas. É possível, porém, utilizar um conjunto de fatores que, uma vez identificados, podem facilitar a escolha de modalidades mais adequadas. Este trabalho apresenta as principais características de um espectro amplo de modalidades de contratação aplicáveis em projetos, identifica os principais fatores que influenciam na escolha das modalidades e propõe uma abordagem estruturada para a escolha da modalidade de contratação, partindo das características do projeto e do ambiente em que é realizado e não das complexas regras de uso das modalidades. A aplicação de um modelo operacional resultante desta abordagem estruturada permitiu demonstrar, através de simulações de campo, que embora existam aspectos específicos de cada projeto, é possível identificar um conjunto de fatores que possibilitam definir a modalidade de contratação mais adequada em cada aquisição do projeto. / In the current context of competitiveness and rationalization in business, most of the organizations do not have all the necessary resources to develop their projects, requiring the participation of suppliers of materials, equipment, services, systems, solutions or even the whole project. Thanks to this, the choice on contract type for each item or package to be purchased on the market has determinant effects on schedule, costs, quality, risks and efforts, and can contribute decisively to success of the project. As this choice is usually based on rules of use of the contract types, the options are frequently restricted to those contract types whose rules are known. However, it is possible to use a set of factors that, once identified, can facilitate the choice of most appropriate contract types. This thesis presents the main characteristics of a broad spectrum of contract types applicable in projects, identifies the main factors influencing the decision of contract types and proposes a structured approach for choosing the type of contract, based on project characteristics and environment instead of the complex rules of use of the contract types. Field simulations using an operational model resulting from this structured approach allowed to show that, although there are specific aspects in every project, it is possible to identify a set of factors that help define the appropriate type of contract for each project acquisition.

Dentre as melhores práticas de gerenciamento de projetos, que envolvem áreas de conhecimento como escopo, prazo, custos, qualidade, comunicação, recursos humanos, aquisições, segurança, meio ambiente e a integração destas disciplinas e seus processos, a gestão de riscos é uma das áreas de relevância e que tem sido estudada, detalhada e aplicada nas organizações. Porém o tema da gestão de riscos com o foco nas aquisições de bens e serviços em projetos de bens de capital embora contribua para o atendimento dos objetivos dos projetos não é comumente encontrado na literatura técnica em gerenciamento de projetos. Este trabalho analisa especificamente a gestão dos riscos operacionais do processo de aquisição de bens e serviços para a implantação de projetos de bens de capital, compreendidos desde o processo de planejamento da aquisição até o encerramento do contrato. Através de uma revisão conceitual e da aplicação de estudos de casos em três empresas de relevância no cenário de negócios e de projetos no nível nacional e internacional foi possível validar a importância do tema no contexto de projetos de bens de capital, bem como compreender como as empresas pesquisadas estão estruturadas para o gerenciamento de riscos, relacionar categorias típicas de riscos para a aquisição de bens e serviços nestes projetos, verificar a aderência aos conceitos teóricos e identificar algumas práticas consolidadas e não consolidadas sobre o assunto baseado na análise de dados e lições aprendidas das empresas pesquisadas. / Considering all project management best practices, who involve process groups as scope, time, costs, quality, communication, human resources, procurement, safety, environment and the integration of all of them and its processes, the risk management is one of the relevant areas who has been studied, detailed and applied in some organizations. However the risk management focus on procurement and contracts even contributing with the success of the projects objectives it is not a common subject found at project management technical literature. This research focus specifically at the capital project risk management for the procurement of goods and contracts, from the procurement and contract planning phase till the contract close out. The research was conducted through a conceptual review and the application of case studies in three relevant organizations regarding their business and projects from the Brazilian and international scenarios. As a result it was possible to validate the importance of the procurement and contracts risk management for the capital projects, as well to understand how the studied organizations are structured to deal with the risk management, to list the typical risk categories, to verify the conceptual adherence and finally to identify the consolidated and non consolidated practices based on the data analysis from the studied organizations.