Supplier selection in the sourcing process. Case company: Costo Ltd.
Heinonen, Päivi (2012)
Heinonen, Päivi
HAAGA-HELIA ammattikorkeakoulu
2012
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2012112616635
https://urn.fi/URN:NBN:fi:amk-2012112616635
Tiivistelmä
The purpose of this thesis is to look into the sourcing process of the case company Costo Ltd and especially its supplier selection. Costo Ltd. is a newly founded small Finnish design company that is specialised in designing accessories. The focus in this thesis is the supplier selection process of fabric suppliers; specifying the needs, determining the criteria, finding the potential suppliers, evaluating the suppliers and finally choosing one. It has been stated by multiple theorists that organising the soucing process will improve the purchasing performance via efficiency and cost savings.
The theory part of the thesis starts with the wider context and narrows down toward the end. The theory starts with the purchasing function, moves on to the sourcing process and finally ends with the supplier selection. The theories were collected from multiple academic books, articles and Internet sources. It is important to understand the importance of supplier selection in the purchasing process and the kinds of initial decisions that have to be made in accordance with the company’s strategy.
The research method was qualitative and the interviews were conducted in spring 2012. The interview format was semi-structured and it included several open-end questions as well as a survey form. The research was highly dependent on the interview of Costo personnel, but a representative of one of Costo’s main suppliers, Kvadrat, was also interviewed.
The results of this thesis reveal the evaluation criteria behind supplier selection, the different methods through which the suppliers can be obtained and the evaluation of these potential suppliers. The benefitting parties of this thesis are thus the commissioning company, the author and other parties interested in the supplier selection process.
The theory part of the thesis starts with the wider context and narrows down toward the end. The theory starts with the purchasing function, moves on to the sourcing process and finally ends with the supplier selection. The theories were collected from multiple academic books, articles and Internet sources. It is important to understand the importance of supplier selection in the purchasing process and the kinds of initial decisions that have to be made in accordance with the company’s strategy.
The research method was qualitative and the interviews were conducted in spring 2012. The interview format was semi-structured and it included several open-end questions as well as a survey form. The research was highly dependent on the interview of Costo personnel, but a representative of one of Costo’s main suppliers, Kvadrat, was also interviewed.
The results of this thesis reveal the evaluation criteria behind supplier selection, the different methods through which the suppliers can be obtained and the evaluation of these potential suppliers. The benefitting parties of this thesis are thus the commissioning company, the author and other parties interested in the supplier selection process.