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Article
Publication date: 3 April 2018

Karen A.F. Landale, Aruna Apte, Rene G. Rendon and Javier Salmerón

The purpose of this paper is to show how data analytics can be used to identify areas of potential cost savings for category managers of installation-level services. Using…

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Abstract

Purpose

The purpose of this paper is to show how data analytics can be used to identify areas of potential cost savings for category managers of installation-level services. Using integrated solid waste management (ISWM) as a test case, the authors also examine the impact of small business set-asides on price and contractor performance.

Design/methodology/approach

The authors use data analytics, specifically sequential regression, the Wilcoxon rank-sum test and ordered logistic regression to investigate the influence of service- and contracting-related variables on price and contractor performance.

Findings

The authors find that service- and contracting-related variables influence price. Specifically, they identify that a service-related variable, number of containers, significantly affects price, and that two contracting-related variables, one type of small business set-aside and the number of offers received, also significantly affect price. The authors quantify the price premiums paid for using various types of small business set-asides.

Research limitations/implications

Although the findings were significant, the authors believe that the robustness of the conclusions could be enhanced if the Air Force captured more data. Additional observations would increase the generalizability of the results.

Practical implications

This empirical experiment demonstrates that detailed analyses are required to gain insights into services’ price drivers to craft more appropriate category management strategies for installation-level services.

Originality/value

This empirical study shows how historical data can be used to assess price drivers of installation-level services. It is also one of the first to quantify the impact that small business set-asides have on price.

Details

Journal of Defense Analytics and Logistics, vol. 1 no. 2
Type: Research Article
ISSN: 2399-6439

Keywords

Available. Content available
Article
Publication date: 3 July 2017

Karen A.F. Landale, Rene G. Rendon and Timothy G. Hawkins

The purpose of this research is to explore the effects of supplier selection method on key procurement outcomes such as procurement lead time (PLT), supplier performance and buyer…

3879

Abstract

Purpose

The purpose of this research is to explore the effects of supplier selection method on key procurement outcomes such as procurement lead time (PLT), supplier performance and buyer team size.

Design/methodology/approach

Data were collected from a sample of 124 archival contract records from the US Department of Defense. A multiple regression model and multivariate analysis of covariance/analysis of covariance models were used to test the effects of source selection method on pertinent procurement outcomes.

Findings

The trade-off (TO) source selection method increases PLT, as does the number of evaluation factors and the number of proposals received. Substantially larger sourcing teams are also associated with the TO source selection method. Nonetheless, the TO method results in better supplier performance.

Practical implications

TO source selections yield superior supplier performance than low-bidder methods. However, they are costly in terms of time and personnel. Any assessment of supplier value should consider not only the price premium for higher performance but also the transaction costs associated with the TO method.

Originality/value

Very little research addresses a buying team’s evaluation of supplier-offered value ex ante and whether that value assessment materializes into actual value-added supplier performance. Low bidder tactics are pervasive, but price (i.e. sacrifice) is only one component of value. Benefits from superior supplier performance may yield greater overall value. If value is critical to the buyer, a TO source selection method – versus a low-bidder approach – is the appropriate tool because of higher supplier performance ex post.

Details

Journal of Defense Analytics and Logistics, vol. 1 no. 1
Type: Research Article
ISSN: 2399-6439

Keywords

Available. Content available
Book part
Publication date: 28 February 2017

Abstract

Details

Engaging Dissonance: Developing Mindful Global Citizenship in Higher Education
Type: Book
ISBN: 978-1-78714-154-4

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