Teknillinen tiedekunta, 2017
Master's Degree Programme in Industrial Management
This thesis has been conducted in co-operation with a Finnish consumer packaging company. Comprehensive sourcing strategy was created in this thesis based on Kraljic’s purchasing portfolio approach. The original purchasing portfolio approach is old, therefore it requires updates and supporting models and tools. Sourcing strategy was created based on theoretical framework, however the implementing process does not follow the framework step by step.
In the literature review, shortages in Kraljic’s approach were recognized and they were filled with tools, approaches and aspects from the last two decades. Firstly, the basic use of the portfolio was presented. Secondly, the management models of each of the category were complemented with additional management tools and models. Thirdly, Kraljic’s four step approach to creating a sourcing strategy was supported with additional models and tools to improve its practical applicability. Finally, aspects and approaches were provided to improve sustainability of the portfolio approach. Increasing positive externalities form sourcing and ensuring long-term profitability of the approach using transfer model were recognized as objectives for improved sustainability.
Empirical part of the study consisted of value stream tracking and categorization. Both analyses were conducted first at the sales organization level and then organizational versions were combined from these. Value chain tracking was started from customer segmentation and then product families and suppliers were connected to the segments. Categorization was conducted using six components to measure importance of purchasing and complexity of supply market. Product families were divided into four categories based on these components, and management approaches were defined. Finally, a target purchasing portfolio was formed based on transferring model, in which a more favourable category was defined for a product family according to its attributes on the supply market.
sourcing strategy, purchasing portfolio, supply management