Improving competitiveness by optimizing the supply chain at Örum Oy Ab
Engström, Daniel (2016)
Haaga-Helia ammattikorkeakoulu
2016
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201605269989
https://urn.fi/URN:NBN:fi:amk-201605269989
Tiivistelmä
The commissioning party Örum Oy Ab is a Finnish provider of comprehensive solutions of automotive maintenance services, spare parts, and accessories for service shops in the private and commercial vehicle markets, manufacturers, authorized dealerships, tire shops, and spare part shops. It has been struggling in a highly competitive and stagnant market to regain profitability.
The purpose of this study is the formulation of suggestions for optimizing the supply chain to improve competitiveness from a lean perspective. The goal is approached from a manage-rial point of view and is focused on developing the operational strategy and supply chain processes. The focus of the analysis is on creating value for the customers and developing methods to deliver value with minimal waste.
This study consists of a theory section and an empirical section. The theory section dis-cusses supply chains, supply chain management, and the philosophy of lean, its strategic implications, models, some tools, and limitations. It also introduces three generic competi-tive strategies. The empirical section consists of an analysis of the current supply chain at Örum and an analysis of the current structure from a lean perspective. Improvement sug-gestions are based on the findings of the analysis.
The study is based on qualitative research data collection methods through means of the author’s personal professional experience, qualitative discussions, observation, and a desk-top study. The discussions were conducted with employees from various departments of the company, to gain a broader understanding of how the company functions as a whole. The collected data was analyzed using qualitative means.
The results indicate that Örum’s current supply chain structure is focused on resource effi-ciency, as opposed to flow efficiency. The inventory is bloated, the throughput time is long, and considerable amounts of working capital are tied into the supply chain at all times. Fur-ther development of supplier cooperation could also bring much needed agility to the supply chain.
Reconsidering the operational strategy with an emphasized focus on customer perceived value could yield improved results in customer satisfaction. An orientation towards a flow efficient supply chain design could improve the flow of products through the supply chain and banish unwanted waste simultaneously. This could free up valuable resources to be used on improvements in customer value creation. In addition, further development of the IT-systems Örum uses could bring immediate advantages by supporting daily activities in-stead of limiting them.
The purpose of this study is the formulation of suggestions for optimizing the supply chain to improve competitiveness from a lean perspective. The goal is approached from a manage-rial point of view and is focused on developing the operational strategy and supply chain processes. The focus of the analysis is on creating value for the customers and developing methods to deliver value with minimal waste.
This study consists of a theory section and an empirical section. The theory section dis-cusses supply chains, supply chain management, and the philosophy of lean, its strategic implications, models, some tools, and limitations. It also introduces three generic competi-tive strategies. The empirical section consists of an analysis of the current supply chain at Örum and an analysis of the current structure from a lean perspective. Improvement sug-gestions are based on the findings of the analysis.
The study is based on qualitative research data collection methods through means of the author’s personal professional experience, qualitative discussions, observation, and a desk-top study. The discussions were conducted with employees from various departments of the company, to gain a broader understanding of how the company functions as a whole. The collected data was analyzed using qualitative means.
The results indicate that Örum’s current supply chain structure is focused on resource effi-ciency, as opposed to flow efficiency. The inventory is bloated, the throughput time is long, and considerable amounts of working capital are tied into the supply chain at all times. Fur-ther development of supplier cooperation could also bring much needed agility to the supply chain.
Reconsidering the operational strategy with an emphasized focus on customer perceived value could yield improved results in customer satisfaction. An orientation towards a flow efficient supply chain design could improve the flow of products through the supply chain and banish unwanted waste simultaneously. This could free up valuable resources to be used on improvements in customer value creation. In addition, further development of the IT-systems Örum uses could bring immediate advantages by supporting daily activities in-stead of limiting them.