Developing supplier performance measures in a case organisation
Schümann, Sylvie (2020)
Schümann, Sylvie
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202004155042
https://urn.fi/URN:NBN:fi:amk-202004155042
Tiivistelmä
This thesis focuses on establishing appropriate supplier performance measures for a case company of the marine industry. Adequate approaches for determining supplier performance measures were identified as well as relevant concepts related to the subject.
Competitive advantage can be gained from integrating procurement into company’s strategy. Not only cost savings can be achieved but value can be added with well-integrated supply chains. (Gordon, 2008, pp.1-2). Supplier relation management (SRM) is therefore an important strategic function within an organisation in order to ensure efficient up-stream operations. The case company has most of its manufacturing outsourced. Procurement and SRM is however currently on low focus at the case company and has little strategic approach.
Supplier relationship management (SRM) was identified as the most important concept related to establishing supplier performance measures. SRM has gained an important role in many organisations ensuring efficient up-stream operations.
Establishing an efficient SRM system and strategy, which is aligned with the overall strategy of an organisation, has been determined as crucial for establishing appropriate supplier performance expectations and measures. The supplier performance expectations need to be communicated with the supplier in order to ensure realisation of the goal set for the SRM strategy. This was not executed at the case company.
The methodology of the qualitative research was mainly semi structured interviews. Elements of action-based research were part of the research methodology as well. A workshop was organised with mainly procurement employees of the case company to test a solution proposal. It was found that supplier performance measures to be monitored at the case company are in the area of cost, time, quality and partnership based on the results of the analysis of the data gained from the interviews and workshop. These supplier performance measures support the realisation of the overall strategy and targets of the case company. The supplier performance measures were derived from the overall strategy of the case company and from the operational targets. The results of the research should function as a first step for continuous establishing and improving of a SRM system at the case company.
Competitive advantage can be gained from integrating procurement into company’s strategy. Not only cost savings can be achieved but value can be added with well-integrated supply chains. (Gordon, 2008, pp.1-2). Supplier relation management (SRM) is therefore an important strategic function within an organisation in order to ensure efficient up-stream operations. The case company has most of its manufacturing outsourced. Procurement and SRM is however currently on low focus at the case company and has little strategic approach.
Supplier relationship management (SRM) was identified as the most important concept related to establishing supplier performance measures. SRM has gained an important role in many organisations ensuring efficient up-stream operations.
Establishing an efficient SRM system and strategy, which is aligned with the overall strategy of an organisation, has been determined as crucial for establishing appropriate supplier performance expectations and measures. The supplier performance expectations need to be communicated with the supplier in order to ensure realisation of the goal set for the SRM strategy. This was not executed at the case company.
The methodology of the qualitative research was mainly semi structured interviews. Elements of action-based research were part of the research methodology as well. A workshop was organised with mainly procurement employees of the case company to test a solution proposal. It was found that supplier performance measures to be monitored at the case company are in the area of cost, time, quality and partnership based on the results of the analysis of the data gained from the interviews and workshop. These supplier performance measures support the realisation of the overall strategy and targets of the case company. The supplier performance measures were derived from the overall strategy of the case company and from the operational targets. The results of the research should function as a first step for continuous establishing and improving of a SRM system at the case company.