Pricivel Carrera, Sükran Katik and Fredo Schotanus
Little is known about actual price savings generated by cooperative purchasing and nonmonetary advantages, disadvantages and impediments for the cooperative purchasing of complex…
Abstract
Purpose
Little is known about actual price savings generated by cooperative purchasing and nonmonetary advantages, disadvantages and impediments for the cooperative purchasing of complex or high-risk purchases. This paper aims to explore these topics by studying joint purchasing of pacemakers in The Netherlands.
Design/methodology/approach
To evaluate the magnitude of price savings, data on individual and collective prices for 18 hospitals was analyzed. In addition, 16 interviews were carried out with representatives of hospitals that participated and did not participate in the joint purchase.
Findings
Based on quantitative and qualitative data, the authors found large differences in price savings which can be attributed to scale, but mostly to knowledge of the group and renewing a contract in a technology-driven and developing market. Limited product choice – because of an organization joining a cooperative – constrained the attractiveness of cooperative purchasing, as end users may have specific product preferences. The consideration of preferences of end users is important toward successful joint purchasing of complex items.
Social implications
The authors argue that price savings because of scale are about 7% for smaller organizations and 4% for larger organizations. For smaller organizations with low specific knowledge and capacity for buying complex products, economies of process and knowledge are more important reasons for joining a purchasing group than scale. For large organizations with high specific knowledge and capacity, scale is the most important reason.
Originality/value
This study combined qualitative and quantitative perspectives, using actual spend data, to investigate cooperative purchasing of high-risk or complex purchases. On the one hand, more insight into the magnitude and reasons for price savings is provided than in earlier literature. On the other hand, more insight is given in qualitative reasons for joining a group and challenges for cooperative purchasing of complex items.
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Jacco Robbert Jan van Berkel and Fredo Schotanus
This paper aims to study the short-term effects of a new procurement policy document on the inclusion of environmental requirements and green award criteria in tenders. The policy…
Abstract
Purpose
This paper aims to study the short-term effects of a new procurement policy document on the inclusion of environmental requirements and green award criteria in tenders. The policy document is named “Procurement with Impact” and was released by the Dutch central government to further stimulate Sustainable Public Procurement (SPP).
Design/methodology/approach
Central government tenders were quantitatively analyzed in the six months prior and after the release of the new policy on their inclusion of environmental concerns. This judgment was made based on the role of environmental concerns in the requirements and the award criteria. As a control group, the same was done on a municipal level, for which the new policy document does not apply. Each of the four samples contained 60 tenders. Data was acquired via the European public procurement database TED. In the analysis, a chi-square test was used to measure whether a significant difference exists between the two periods for each group.
Findings
Results show that central government has procured in a more environmentally concerned way after the release of “Procurement with Impact.” Within a year, the number of green tenders conducted by central government significantly increased from 30% to 55%. No significant difference was found on a municipal level.
Social implications
SPP has received increasing attention over the past few decades but has not led to implementation of its principles in most public tenders. As SPP can have a major impact on a more sustainable and social society, it is important to understand how policy can influence the sustainability of tenders. The findings of our study show that “Procurement with impact” had a significant positive short-term effect on the inclusion of green award criteria and requirements in public tenders. Implementing similar SPP policies in other government sectors and other countries could have a substantial effect on the worldwide uptake of SPP.
Originality/value
“Procurement with Impact” contains a clear sustainable vision embracing the principles of SPP. This government policy takes into account several SPP barriers and drivers and satisfies several policy theory conditions. The authors show in the paper that this policy is an effective instrument for increasing the inclusion of environmental concerns in tenders. As the difference is already significant within a year, this could also reflect the readiness of tenderers to turn to SPP once there is a clear organization wide policy.
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Olivier van Noort and Fredo Schotanus
In an urban environment in The Netherlands, a municipality, a health insurance company and nine health care organisations try to integrate health care services and social services…
Abstract
Purpose
In an urban environment in The Netherlands, a municipality, a health insurance company and nine health care organisations try to integrate health care services and social services by means of a global, population-based budget for three areas with above the average costs. Against a background of changing circumstances and bureaucratic impediments, they try to reach an agreement on the contractual provisions before starting cooperation in everyday practice. The purpose of this paper is to describe and evaluate the cooperative process.
Design/methodology/approach
The paper reflects the authors’ personal experiences and interpretation of the cooperative process.
Findings
The participants experience was that the ideals they had started with faded when financial and juridical procedures dominated the discussions. In contrast with that, focusing on the population involved created positive energy and motivation.
Practical implications
Uncertainties are part of social innovation and therefore, formal contracts will be incomplete. Trust building techniques and creating common values and culture are necessary ingredients for developing confidence that the cooperating parties will be able to cope with unforeseen developments or outcomes.
Originality/value
The paper may contribute to the successful development of innovative agreements between purchasers and providers of health care and social care in order to achieve better integrated services without rising costs.