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Towards a purchasing portfolio model for defence procurement – A Delphi study of Swedish defence authorities

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  • Ekström, Thomas
  • Hilletofth, Per
  • Skoglund, Per

Abstract

This study explains the constructs of a purchasing portfolio model (PPM) that defence authorities can use in practice in defence procurement and designs a segmentation model. We identify open PPM design and application questions in the literature and conduct a Delphi study with twenty experts from Swedish defence authorities to design a segmentation model that is fit-for-purpose. The paper addresses the open design and application questions discussed in the literature and satisfies the operational requirements of the Swedish Armed Forces (SwAF). The proposed segmentation model builds on three dimensions: the operational requirements of the SwAF, the market's ability to deliver supplies on time, and limitations in the SwAF operational capability if the market does not deliver supplies on time. To reduce complexity, we propose a two-stage model in which we use one dimension as a precursor to a two-dimensional model. In the latter, we merge sixteen elements into one square along with three other segments which users should treat differently. The paper contributes to extant academic knowledge on PPMs by eliciting practitioners' views on open design and application questions. We develop the proposed segmentation model in cooperation with practitioners and believe that it will be of value in defence procurement practice.

Suggested Citation

  • Ekström, Thomas & Hilletofth, Per & Skoglund, Per, 2021. "Towards a purchasing portfolio model for defence procurement – A Delphi study of Swedish defence authorities," International Journal of Production Economics, Elsevier, vol. 233(C).
    • Handle: RePEc:eee:proeco:v:233:y:2021:i:c:s0925527320303455
    DOI: 10.1016/j.ijpe.2020.107996
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    References listed on IDEAS

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    1. Kembro, Joakim & Näslund, Dag & Olhager, Jan, 2017. "Information sharing across multiple supply chain tiers: A Delphi study on antecedents," International Journal of Production Economics, Elsevier, vol. 193(C), pages 77-86.
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    3. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    4. Rowe, Gene & Wright, George, 1999. "The Delphi technique as a forecasting tool: issues and analysis," International Journal of Forecasting, Elsevier, vol. 15(4), pages 353-375, October.
    5. Genovese, Andrea & Lenny Koh, S.C. & Acquaye, Adolf, 2013. "Energy efficiency retrofitting services supply chains: Evidence about stakeholders and configurations from the Yorskhire and Humber region case," International Journal of Production Economics, Elsevier, vol. 144(1), pages 20-43.
    6. Hesping, Frank Henrik & Schiele, Holger, 2016. "Matching tactical sourcing levers with the Kraljič matrix: Empirical evidence on purchasing portfolios," International Journal of Production Economics, Elsevier, vol. 177(C), pages 101-117.
    7. Norman Dalkey & Olaf Helmer, 1963. "An Experimental Application of the DELPHI Method to the Use of Experts," Management Science, INFORMS, vol. 9(3), pages 458-467, April.
    8. Worrell, James L. & Di Gangi, Paul M. & Bush, Ashley A., 2013. "Exploring the use of the Delphi method in accounting information systems research," International Journal of Accounting Information Systems, Elsevier, vol. 14(3), pages 193-208.
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    1. Saporiti, Nicolò & Cannas, Violetta Giada & Pozzi, Rossella & Rossi, Tommaso, 2023. "Challenges and countermeasures for digital twin implementation in manufacturing plants: A Delphi study," International Journal of Production Economics, Elsevier, vol. 261(C).
    2. Bajomo, Mary & Ogbeyemi, Akinola & Zhang, Wenjun, 2022. "A systems dynamics approach to the management of material procurement for Engineering, Procurement and Construction industry," International Journal of Production Economics, Elsevier, vol. 244(C).

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