A Decision-Making Approach for Procuring Custom-Made Machineries and Components

The paper wants to improve the procurement processes for custom-made machineries and components. Indeed, the current methods and software platforms adopted by industries for purchasing machineries do not consider value generated through the entire lifecycle. Furthermore, the purchasing process of custom-made components from external suppliers is often and still characterized by several negotiation activities. This paper wants to improve this context by proposing two approaches to fostering the procurement processes. The first objective is to define an approach for standardizing the method for configuring machineries to be supplied from suppliers and to establish an approach for estimating their costs. The most important benefits of such an approach consist of (i) machinery selection based on the Total Value of Ownership (TVO), and (ii) optimized suppliers’ selection by strengthening relationships between customers and suppliers. The second objective is to define a method and a software platform for managing the procurement phase of custom-made components. The most important benefits of this approach consist of (i) the standardization of procurement policies for custom and standard components, and (ii) the faster budgeting process. Future work consists of defining a reference model for gathering primary data required for TVO computation and defining standard agreements between suppliers and customers.