Improving transparency and communication between focal company and suppliers
Kumara, Ville (2015)
Jyväskylän ammattikorkeakoulu
2015
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2015121721249
https://urn.fi/URN:NBN:fi:amk-2015121721249
Tiivistelmä
The objective of the thesis was to improve visibility and communication in the delivery process between a case company and its suppliers. The thesis was assigned by a company operating in the technology industry. The objective was to examine the company’s current policies and find ways to improve the order-delivery process. The thesis aimed to find answers to the most important questions: What information was essential for both parties with regard to more reliable deliveries, what were the current problems in the order-delivery process and what could be done better?
The approach of the thesis was that of a qualitative case study with certain quantitative aspects. The qualitative methods were used when interviewing the case company’s buyers and suppliers. In addition, the author’s own experience and observation in the company were an advantage when identifying the current situation. The quantitative approach was used in collecting data from the company’s’ ERP-system to support the identification of the problems.
The identified problems were quite similar with the buyers and suppliers. The suppliers could not keep agreed buffer stocks, which resulted in incomplete and late deliveries. Based on the findings, this was caused by the fact that the case company could not give any continuous forecasts to its suppliers. Incomplete and late deliveries led the buyers to the common situation in which they used most of their time controlling orders, and this left no time for more important, strategic improvement tasks.
The thesis introduces solutions to the identified problems mainly by highlighting the fact that the companies should deepen their cooperation. In addition, also more concrete solutions were given, such machine-specific material needs and forecasts. The proposed solutions help the suppliers to understand the case company’s operations better and they should be able to keep the agreed buffer stocks better. Because of the results, both parties have now more visibility to each other’s situation, and this should help them to eliminate the earlier problems.
The approach of the thesis was that of a qualitative case study with certain quantitative aspects. The qualitative methods were used when interviewing the case company’s buyers and suppliers. In addition, the author’s own experience and observation in the company were an advantage when identifying the current situation. The quantitative approach was used in collecting data from the company’s’ ERP-system to support the identification of the problems.
The identified problems were quite similar with the buyers and suppliers. The suppliers could not keep agreed buffer stocks, which resulted in incomplete and late deliveries. Based on the findings, this was caused by the fact that the case company could not give any continuous forecasts to its suppliers. Incomplete and late deliveries led the buyers to the common situation in which they used most of their time controlling orders, and this left no time for more important, strategic improvement tasks.
The thesis introduces solutions to the identified problems mainly by highlighting the fact that the companies should deepen their cooperation. In addition, also more concrete solutions were given, such machine-specific material needs and forecasts. The proposed solutions help the suppliers to understand the case company’s operations better and they should be able to keep the agreed buffer stocks better. Because of the results, both parties have now more visibility to each other’s situation, and this should help them to eliminate the earlier problems.