Cost management in the supply chain: An analysis of the costs of different types of municipal procurement

Abstract

The integrated management of the purchasing chain in the public sector demands from the managers an effective control of the whole process. In developing countries there is a need for more effective control practices, such as knowledge of the costs of the purchasing process. The present research aims to analyze the cost of bidding processes in a small city in Brazil in its different modalities. For its construction, a bibliographic survey was carried out on costs in public administration and public procurement. The research is characterized as being of quantitative and qualitative, and descriptive approach, being developed through a single case study. The unit of analysis is the city of Arapongas, Paraná, Brazil, where primary data was collected (interviews with public servants in the fields of management, control, and human resources) and secondary (financial and budget reports). It was verified that among the different modalities analyzed the cost of the electronic trading tends to be smaller, that is, it is more agile when it comes to the effectiveness of the whole process. We contribute with an important method for data analysis of the small cities that do not have available data for decision making. Practically, this work helps the public administration to decide which is the best form for public contracts.

Keywords

• Public procurement
• Process cost
• Purchasing