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Waste Management: Supplier Selection Criteria and Weighting Factors Within Tender Evaluation Processes : A Comparative Case Study of Norwegian Municipalities

Hopfer, Anna Julie Brattlien; Bergström, Sonja Linn Linnea
Master thesis
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2036679.pdf (2.577Mb)
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http://hdl.handle.net/11250/2579372
Utgivelsesdato
2018
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Samlinger
  • Master of Science [1117]
Sammendrag
The research aims at investigating the connection between supplier selection

criteria and the achievement of innovative and sustainable contracts. During 2017,

the Norwegian waste marked suffered from the bankruptcies of two of the largest

household waste collectors. The municipalities that were responsible for the

outsourcing of the contracts received massive criticism for how they conducted

the tender evaluation processes, especially since the contracts were awarded to the

supplier that offered the lowest price. Factors like changes in trends, new

technology, and an increased focus on the circular economy have increased the

complexity of waste collection and transport services. Thus, it is found evidence

that it is no longer sustainable to outsource the service exclusively on price. One

suggested action that has received attention lately is the usage of non-economic

supplier selection criteria, which permits the selection of a supplier with a greater

focus to other aspects like, i.e., their quality and environmental concerns. Since

the usage of non-economic award criteria is emerging, uncertainties regarding the

effect, definitions, and proper usage are still discussed. Based on the bankruptcies

and increased usage of non-economic criteria, our research aims to answer the

proposed research question: “How does the weighting of supplier selection criteria

affect the tender evaluation processes, and in what manner does the usage of

criteria promote the formulation of sustainable and innovative contracts?”.

A comparative case study approach was conducted to answer our research

question. Semi-Structured interviews with decision-makers within several

Norwegian municipalities provided an in-depth understanding of the usage and

implications of supplier selection criteria. Due to the nature of contracting out a

refuse collection service, theory within the area of public procurement, contract

management, project management, and supplier selection become relevant.

Further, the principal-agent theory is used to investigate communication and

market transparency. Lastly, transport economics provide the public purchasers'

insight into the cost drivers, which are found to be crucial for sustainable pricing.

Key words: Household waste management, municipal solid waste, outsourcing,

supplier selection criteria, award criteria, tender evaluation processes, publicprivate

procurement, household waste collection
Beskrivelse
Masteroppgave(MSc) in Master of Science in Business, Logistics, operations and supply chain management - Handelshøyskolen BI, 2018
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Handelshøyskolen BI

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