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Agile Procurement pp 171–223Cite as

Palgrave Macmillan

Costs and Agile Procurement

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Abstract

Business processes largely determine the costs also in procurement organizations. This chapter examines in detail the methods of lean thinking. It introduces the principle of leanness and looks in detail at the main tools available to eliminate waste. The chapter discusses value stream mapping, kaizen, kanban, just-in-time, SIPOC, autonomation, and heijunka. It stresses in particular the importance of improvements in the lean thinking method itself, such as Lean Six Sigma, lean and digitize, and leagile. The latter method is a combination of lean thinking and agile methodologies. It allows for a bimodal mode of management and operations of procurement, applying the best of both methods to different parts of the organization processes.

The last part of the chapter examines procurement finance. This is a development with respect to the traditional trade finance and supply chain finance. It extends the consideration to all procurement processes and their financing.

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Notes

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  1. University of Tor Vergata, Rome, Italy

    Bernardo Nicoletti

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Nicoletti, B. (2018). Costs and Agile Procurement. In: Agile Procurement. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-61082-5_8

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