Collaborative Procurement in Humanitarian Organizations
Metin, Mehmet Önder (2021)
2021
Master's Programme in Industrial Engineering and Management
Tekniikan ja luonnontieteiden tiedekunta - Faculty of Engineering and Natural Sciences
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Hyväksymispäivämäärä
2021-01-29
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-202101221641
https://urn.fi/URN:NBN:fi:tuni-202101221641
Tiivistelmä
As defined by United Nations, collaborative procurement (CP) is a procurement arrangement in which several agencies unite their efforts in procurement operations and achieve the cost and service benefits as a group. In humanitarian sector, which is characterized by uncertain demand and uncertain funding, CP can play an important role in reducing operational costs and better serving the needs of beneficiaries. However, conducting a CP is not an easy task. It requires inter-organizational harmonization of procurement norms, rules and standards, coordination, trust, commitment, objective alignment, and top management support.
The objective of this study is to investigate the influence of centralization on CP among humanitarian organizations. In this research, procurement centralization has two meanings. In a single organization, centralization refers to a central procurement unit or headquarters who gather the needs of country offices and then carry out CP for the entire organization. In a group of organizations, centralization refers to an establishment of a formal central entity, i.e. joint procurement team or network, represented by the members of each organizations. This entity has high level of influence on procurement operations such as technical specification and supplier selection. This research will explore the role of both types of central organizations on the success of CP.
In this research, systematic literature review method was carried out. Scientific papers and organizational reports were screened to answer the formulated research questions which are respectively 1) to what extent humanitarian organizations collaborate when procuring goods and services, 2) what are the success factors of CP, and 3) how centralization facilitates CP. Additionally, interviews were conducted to obtain insights from practitioners on the CP success fac-tors.
The research unveiled some key findings. In a single organization, centralized procurement improves the effectiveness and efficiency of CP, aligns the objectives, standardizes the procurement norms and improves the coordination between headquarters and county offices. In decentralized humanitarian organizations, introduction of a centrally managed information system for ordering, planning, and reporting would help headquarters in identifying opportunities for CP and mitigating the procurement risks across the organization.
In a group of organizations, inter-organizational centralization enhances the cooperation and collaboration between the organizations, allow them to develop common strategies and identify opportunities to achieve better value for money. Even though, it requires significant investment of time, resources, and commitment from top management side, once established, organizations not only achieve financial gains but also add value to their procurements. Inter-organizational centralization should be initiated at the headquarter level and then implemented at the country level because country offices might have different procurement policies, procedures and systems that impede the harmonization process. Therefore, making top-down reforms along with the top management support would be easier to promote country level CP.
The objective of this study is to investigate the influence of centralization on CP among humanitarian organizations. In this research, procurement centralization has two meanings. In a single organization, centralization refers to a central procurement unit or headquarters who gather the needs of country offices and then carry out CP for the entire organization. In a group of organizations, centralization refers to an establishment of a formal central entity, i.e. joint procurement team or network, represented by the members of each organizations. This entity has high level of influence on procurement operations such as technical specification and supplier selection. This research will explore the role of both types of central organizations on the success of CP.
In this research, systematic literature review method was carried out. Scientific papers and organizational reports were screened to answer the formulated research questions which are respectively 1) to what extent humanitarian organizations collaborate when procuring goods and services, 2) what are the success factors of CP, and 3) how centralization facilitates CP. Additionally, interviews were conducted to obtain insights from practitioners on the CP success fac-tors.
The research unveiled some key findings. In a single organization, centralized procurement improves the effectiveness and efficiency of CP, aligns the objectives, standardizes the procurement norms and improves the coordination between headquarters and county offices. In decentralized humanitarian organizations, introduction of a centrally managed information system for ordering, planning, and reporting would help headquarters in identifying opportunities for CP and mitigating the procurement risks across the organization.
In a group of organizations, inter-organizational centralization enhances the cooperation and collaboration between the organizations, allow them to develop common strategies and identify opportunities to achieve better value for money. Even though, it requires significant investment of time, resources, and commitment from top management side, once established, organizations not only achieve financial gains but also add value to their procurements. Inter-organizational centralization should be initiated at the headquarter level and then implemented at the country level because country offices might have different procurement policies, procedures and systems that impede the harmonization process. Therefore, making top-down reforms along with the top management support would be easier to promote country level CP.