Re-Engineering the purchasing process in a manufacturing company

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Helsinki University of Technology | Diplomityö
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Authors

Ruohomaa, Niki

Date

2008

Major/Subject

Teollisuustalous

Mcode

TU-22

Degree programme

Language

en

Pages

78 (+3)

Series

Abstract

This study focuses on improving the purchasing process of an electric components manufacturer. Well coordinated purchasing can have a profound effect on competitiveness from both a cost and strategic perspective. The main research problem of this study is how the company should re-organize its operations to conduct efficient purchasing and to shift towards supply chain management. To find possible answers to this problem an exhaustive literature review is carried out in areas of supply chain management, purchasing, collaboration with suppliers, demand and flow management. The current purchasing process is evaluated based on the findings from the literature review. Problematic areas are pointed out and specific performance metrics identified for improvement. Based on these observations a framework for the enhanced process is engineered and partly implemented. Results of the implementation are analyzed, presented and compared to previous outcome. Results show that the process efficiency has greatly improved and that other performance metrics have been positively affected by this. The new process also shows possibilities for additional progress in efficiency. A future process map is presented with a framework for implementation within six months. As a conclusion further recommendations are made for both the short and long range.

Description

Supervisor

Lillrank, Paul

Thesis advisor

Serlachius, Nina

Keywords

purchasing, sypply chain management, supply chain management, anskaffning, re-engineering, förnyande

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