I eva klemen cic hereby certify to be the author of this masters thesis that was written under the mentorship of prof. Sourcing strategies and their implementation in the. Department of industrial engineering and innovation sciences. The master programme in twente allows to combine theory and practice already in an early stage of your study. Fredrik key words supply chain risk management, procurement risk. Cips considers that each organisation should as a priority develop an overall sourcing strategy, of which strategic sourcing should be seen as a key element. Strategic sourcing is the opposite of transactional buying as it involves a systematic process that directs purchasing and supply managers to plan, manage, and develop the supply base in line with the organizations objectives in a way.
A case study of integrative creation of supplier relationship management process. Unlike a transactional based purchasing approach that responds to a need by initiating a solicitation and executing a contract, a strategic sourcing approach. Sourcing is a core activity in the procurement function that can create value for the customers, spur innovation and identify new products and market possibilities for modern organizations. Two concurrent trends are developing in most businesses that make the evolution to strategic sourcing almost unavoidable but, nonetheless, very difficult to master.
This thesis will address this gap by focusing on strategic purchasing and examine how. Negotiations management as a business process differences between tactical and. Master thesis university of twente student theses universiteit. Master thesis rotterdam school of management, erasmus university. This thesis is based on a sixmonth internship study with the future production system team based in seattle, wa and it examines the strategic sourcing decision process at boeing commercial airplanes. During my master, i got intrigued by the topics of sustainability in supply chain management and green operations. A case study lindani mbatha department of engineering and technology management, graduate school of technology management, university of pretoria, south africa lindani.
The master in strategic management of family businesses is a program that covers the fundamental concepts related to the management and direction of family businesses, as well as the different processes and tools useful for effective management of these companies. In this thesis, the bsc framework works as an evaluation tool for strategic management practice at farm level in the past. Strategic planning thesis pdf 2 taking a closer look at three decades of strategic planning literature. Role of strategic procurement practices on organizational. Strategic sourcing decisions are, for example, makeor buy decisions and supplier selection. Out sourcing is nothing but in todays world, outsourcing is defined as the strategic means through which companies make contract with outside vendors to perform various it functions or services such as data access, data center operations, software testing and maintenance, it. Series master theses innovation management purchasing. Strategic sourcing for a competitive advantage in the. Mppm chapter 3 strategic sourcing and category management. A new omb initiative on improving acquisition through strategic sourcing was established through the omb memorandum m2 dated december 5, 2012. The table below shows the what strategic sourcing is and what its not. These processes are mapped in flowcharts and presented in the report.
Strategic sourcing is a systematic approach for improving an organizations purchasing activities. Managers can apply many different sourcing processes but these procedures should be tightly related to the overall strategy of the company and to customers needs. When i first came across this subject i was confused too. Master thesis developing a strategic sourcing approach for the. Masters thesis developing a strategic procurement process a case study at boliden ab magnus blomberg. The aim of strategic sourcing is to achieve large and sustainable cost reductions, longterm supply stability and minimization of supply risk. This is my master thesis, my conclusive work for the master in supply chain management at the rotterdam school of management, erasmus. Sourcing, from a strategic point of view, can be define as a systematic process that. Strategic sourcing differs from traditional purchasing in crucial. This is my master thesis, my conclusive work for the master in supply chain management at the rotterdam school of management, erasmus university. A case study purchasing organisational structure and. Strategic sourcing and supplier management and integration decisions must be aligned with corporate mission and vision, have direct operating company involvement and must be based on a welldefined business case.
Masters degree thesis management of the supply chain case. The final conclusions of this report is that in order to be able to control and measure the procurement process in order to improve it, it has to be properly mapped. The scope of this master thesis is related to the size of the firms considered in the analyses. The effect of sourcing balance on innovation performance and strategic flexibility author. Master degree project in international business and trade. Strategic sourcing and supplier management and integration decisions must be aligned with corporate mission and vision, have direct operating company involvement. What are the latest trends and innovations in strategic sourcing and procurement. Examining the sourcing process at a construction company to. Sampling is the process whereby a researcher chooses a sample from the population to which the.
Importance of strategic sourcing skills your business. The subject of this masters thesis was approved by the council of the. From an academic point of view, this thesis, underlines the value of commodity management for strategic sourcing decisions and its applicability for a company. Charting statistical measurements from the databases of the office of textile and apparel, us department of commerce for the past decade reveals dramatic changes in sourcing locations for us firms. Strategic sourcing in construction companies a case study in qatar. Purchasing and supply management at the purchase category level.
The duni brand is sold in more than 40 markets and enjoys a number one position in central and northern europe. Aligning sourcing activities with corporate strategy msc degree programme in strategy master s thesis kristopher buczek 2014 department of management studies. Duni is a leading supplier of attractive and convenient products for table setting and takeaway. Figure 1 the strategic sourcing process divided into its four sub processes. What it is what it is not focused on the total cost of ownership tco incorporating. These said, a word for those about to start their masters thesis. Strategic sourcing methodology university of strathclyde. The application of digital technologies in supply chain. Misis great strength, and one, which supports the mscm programs world class ranking for supply chain education, is it partnerships with industry. Page 2 of 4, best masters degrees in strategic management. The thesis aims to give a deeper understanding of the benefits of a strategic sourcing plan, the risks of such a plan, and the implementation of the plan. In terms of the proposed model of strategy flow, we are now at the bottom section, as demonstrated in figure 10. Besong fred candidate master of entrepreneurial management, jibs, june 2007, chief.
Master thesis developing a strategic sourcing approach for. Notwithstanding the urging initiatives to improve acquisition processes and methods, the public sector continually fails to implement acquisition reform measures that would produce the desired change. Afterwards, a theoretical framework about strategic alignment and sourcing strategies, based on kraljics matrix, is exposed. Cbz bank limited, zimbabwe a research report presented to the graduate school of business leadership university of south africa in partial fulfilment of the requirements for the masters degree in business leadership, university of south africa by daisy. Sourcing strategies and their implementation in the aerospace. Luckily, i found a few useful articles that worked in my favour. Especially from the view point of a case study company. The impact of eprocurement on strategic sourcing a case study. Strategic sourcing helps to reduce the total cost of purchasing while maintaining quality and service. Interaction dynamics of strategic planning within mform based firms a thesis submitted in fulfilment of the requirements for the degree of doctor of philosophy in strategic management and strategy department of management at the university of canterbury by chatchai thnarudee senior supervisor. A case study purchasing organisational structure and competence level effects on a category management project in a publicly owned supply company. Master degree project in innovation and industrial management. The strategic role of the purchasing function strategic.
A case study purchasing organisational structure and competence level. The need to shift to value driven strategic sourcing decision making is only yet defined at a theory level. Strategic sourcing decision making is the scope of this master dissertation. I herewith agree this thesis to be published on the website pages of the faculty of economics. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext.
Evidence from the business management literature pdf. Information on training related to category management and strategic sourcing is available on the lower right tile of the acquisition gateway landing page. The defense acquisition university offers courses on strategic sourcing including clc108 strategic sourcing overview and clc110spend analysis strategies. Thesis presented in partial fulfilment of the requirements for the degree masters in. Improved sourcing flexibility through strategic procurement.
To determine why farms grow the thesis also look into the theory of growth by penrose. Strategic sourcing is a method of managing procurement processes for an organization in which the procedures, methods, and sources are constantly reevaluated to optimize value to the organization by allowing them to buy more effectively and efficiently. Cips advocates the formation of a sourcing board or panel for discussing strategies and assisting with decisionmaking. During the summer and autumn of 2006 i have conducted this study for my master thesis at boliden mineral ab outside skelleftea. Strategic sourcing is organized since some type of methodology or process is needed. It can have a profound impact on a companys financials and can strongly influence the purchasing and procurement processes. Findings trade agreements have influenced the production, manufacturing, and sourcing of textile and apparel products.
The management team shall be made up of four master s degree holders and a powerful board of directors bod of five 5 members from start. Thesis research project malaysia institute for supply. Examining the sourcing process at a construction company. Creating a decisionmaking tool for strategic purchasing gupea. The thesis then describes different aspects of general and strategic risk management strategies, which is then used for analysis of the case company of the thesis.
Since we have been situated at the stockholm office, the last semester have given us the. Pdf application of strategic sourcing practice in public. Role of strategic sourcing on public procurement performance in kenya 1isaac renson ayoyi and 2dr. It ensures that the company acquires goods and services on a costeffective basis while improving value creation.
This is the latest evolutionary stage of purchasing and is characterized by real time data exchanged between suppliers and purchasing, contracting for longterm relationships. Honestly, the only tough part of this process was to keep writing the same text consecutively for three months without getting any variation in work. Strategic procurement practices on organizational performance. Regardless of the interpretation it is associated with high level and longterm planning. Establishing a good strategic sourcing methodology a great strategic sourcing methodology is where companies start looking for quantum savings from their supply chain. Pdf strategic procurement management lecture notes by. For exampleoutsourcing even core capabilities for scale gottfredson et al. Strategic sourcing methodology pdf semantic scholar. For purposes of this paper, strategic sourcing will be defined as the. Strategic procurement management is the process of planning, implementing, evaluating, and controlling strategic and operating purchasing decisions for directing all activities of the purchasing function toward opportunities consistent with the. The goal of the thesis is to show company x the benefits of.
The purpose of this paper is to critically analyze the role of strategic. Thesis report eindhoven university of technology research portal. Previous research focused the topic of strategic alignment on large companies. Many definitions of global sourcing and business outsourcing include this aspect and in this understanding the synonymous use seems to be fair. Interaction dynamics of strategic a thesis in strategic. Now that the globallevel view of sourcing strategy has been covered, we can discuss the actual operationallevel sourcing activities carried out by the global category managers and local buyers. Strategic sourcing refers to the value added process of selecting suppliers which is supported by advanced analytics, market intelligence, supplier performance information and a concrete and well developed strategy deloitte, 2014. First an initial thesis proposal was created and used to provide focus and an. In terms of the proposed model of strategy flow, we are now at. A survey is a systematic method for gathering information from a sample of entities for. The impact of eprocurement on strategic sourcing a case.
This master thesis has the purpose of identifying suggestions of how to improve efficiency and effectiveness to reduce cost when sourcing components where suppliers are involved in product development at the purchasing function vehicle dynamics at volvo 3p. Research shows that many large companies in the us and europe use reverse e sourcing to reduce costs and that supply managers expect continued cost reduction in the future kaufmann and carter, 2004. This research provides an analysis and evaluation of the current and prospective status of copenhagen energys procurement departments ability to carry out a category management project in terms of their organisational structure and skill levels. Strategic sourcing includes the definition of the organizational sourcing objectives and strategy. Supply chain management copenhagen business school 2012 master thesis hand in date. Strategic sourcing practices, the case study of paul bakery uk. Ofpp strategic sourcing strategic sourcing ofpp a structured and collaborative process of analyzing an organizations spend and using the information to make business decisions about acquiring commodities and services more efficiently and effectively. Delivering customer value through procurement and strategic. Aligning sourcing activities with corporate strategy. Impact of strategic sourcing on customer satisfaction. A model of interrelated decisions article pdf available in supply chain forum 71 january 2006 with 17,774 reads how we measure reads.
Strategic sourcing from low cost countries preface this master thesis has been performed as an internship from february until june 2003 at accenture in stockholm. Each student is required to write a masters thesis. Marc zaadnoordijk s0096652 master of science thesis, business administration, track innovation and entrepreneurship department of business administration school of management and governance university of twente date august 24, 2012. This thesis will make a link between the theoretically available strategies and the practical feasibility of using these. The strategic sourcing methodology is a sequence of steps, which encompass the structured and comprehensive approach to purchasing all goods and services on a university wide basis.
Second of all, it provides a quantitative model derived from the theory of commodity management and depicts the necessary steps to practically implement it in a specific setting. Strategic sourcing at whirlpool china case study analysis. Negotiations management for organizations that already have strategic sourcing training in place, greybeard offers a course focused on enhancing negotiations management. However, strategic sourcing can go well beyond cutting costs. The methodology covers the way in which a commodity is procured, managed and its benefits tracked through the commodity lifecycle. Pdf effects of global sourcing on textiles and apparel. They are explained just after the methodological chapter, which is the next one. Cips has formulated positions on strategic sourcing as this is a key activity for purchasing. The thesis is based on a single case study, at the engineering company gea process engineering. This memorandum required the designation of strategic sourcing accountable official ssao, authorized to act on the agency heads behalf, to coordinate internal strategic sourcing.