Developing a Supplier Base Reduction Process
Nafie, Omar (2012)
Nafie, Omar
Metropolia Ammattikorkeakoulu
2012
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201205249616
https://urn.fi/URN:NBN:fi:amk-201205249616
Tiivistelmä
The number of suppliers at the Global Spares Supply department (GSS) had grown large due to the extensive acquisition program that KONE Corporation undertook since 1975. A review of the GSS supplier base and supplier performance history revealed that the cur-rent supplier base was too large for effective and efficient management. In fact, poor supplier’s performance started impacting end-customers and sometimes disrupts the fulfillment process.
This Thesis is based on a single case company department (GSS) and the chosen methodology is action research. The aim of this Thesis is to assist GSS to effectively manage and improve the performance of its supplier base. The objective is to develop a process that describes all the activities to be performed to reduce successfully the number of suppliers.
The proposed process has been developed from a conceptual process which was formed based on the analyzed literature and the available best practices. The process is repeat-able and systematic and it consists of four major phases that incorporate eighth intermediate steps.
The testing of the process has resulted in an elimination of 103 suppliers which correspond to a reduction of 6, 6 % of the current GSS supplier base. The first results were promising and the long-term outcome from a supplier base reduction initiative is a manageable supplier base that comprises a list of preferred suppliers to collaborate with as an integrated part of the supply chain. Besides the developed process, this Thesis investigates the root causes of the GSS’ growing supplier base and suggests recommendations on how to prevent its future expansion.
This Thesis is based on a single case company department (GSS) and the chosen methodology is action research. The aim of this Thesis is to assist GSS to effectively manage and improve the performance of its supplier base. The objective is to develop a process that describes all the activities to be performed to reduce successfully the number of suppliers.
The proposed process has been developed from a conceptual process which was formed based on the analyzed literature and the available best practices. The process is repeat-able and systematic and it consists of four major phases that incorporate eighth intermediate steps.
The testing of the process has resulted in an elimination of 103 suppliers which correspond to a reduction of 6, 6 % of the current GSS supplier base. The first results were promising and the long-term outcome from a supplier base reduction initiative is a manageable supplier base that comprises a list of preferred suppliers to collaborate with as an integrated part of the supply chain. Besides the developed process, this Thesis investigates the root causes of the GSS’ growing supplier base and suggests recommendations on how to prevent its future expansion.