Minimizing Supply Chain Risks in IoT Product Through Standardization of the Onboarding Process
Akmaikin, Nikita (2020)
Akmaikin, Nikita
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202005138790
https://urn.fi/URN:NBN:fi:amk-202005138790
Tiivistelmä
The objective of this thesis was to propose a solution to minimize supply chain risks in the case company by standardization of the onboarding process. With the current process, it was seen complicated to perform the onboarding of new suppliers in a systematic and standardized way. Additionally, it was seen difficult to evaluate the quality of the supplier’s products as well as to distribute responsibilities evenly within the supply network.
In this study, the design research method was chosen to conduct the study and from the data collection perspective, this study is dependent on the in-depth insights of the supply chain topic, thus qualitative research method was chosen. To find the challenges existing in the case company’s supply chain, a current state analysis was performed. After that, a literature review was made to find solutions for the identified challenges. Based on the findings, a proposal for the end-to-end onboarding process was co-created with the case company. Thereafter, the initial proposal was validated by receiving the feedback from the product owner.
The proposal for the end-to-end onboarding process includes three key areas of improvement by introducing a five-phase approach to the supplier onboarding. Firstly, the onboarding process enhancement was performed by combining such methods of supply chain management such as responsibility management, supplier selection, and performance measurements. Secondly, risk management process was introduced due to the existence of “empty activities” in the RACI matrix. Risk management introduced practices to identify risks, log them, and then transform into a problem that can be owned. Lastly, process standardization was presented by introducing a set of standardized documents and alignment with ISO standard was created to evaluate the quality of the supplier’s product.
With a standardized onboarding process and built-in practices, the case company will be able to minimize the risks in the supply chain related to the supplier operation. Also, by implementing the end-to-end onboarding process case company will ensure that risks are identified in the early phases of the cooperation with a new supplier. Such risks include the performance of the supplier, product-related risks, logistics risks, etc. Furthermore, it allows the company to automate the process, save time by keeping process standardized and in the end, it can improve the performance of the deliveries. Currently, the case company is planning to begin the implementation of the most critical parts of the proposed end-to-end onboarding process.
In this study, the design research method was chosen to conduct the study and from the data collection perspective, this study is dependent on the in-depth insights of the supply chain topic, thus qualitative research method was chosen. To find the challenges existing in the case company’s supply chain, a current state analysis was performed. After that, a literature review was made to find solutions for the identified challenges. Based on the findings, a proposal for the end-to-end onboarding process was co-created with the case company. Thereafter, the initial proposal was validated by receiving the feedback from the product owner.
The proposal for the end-to-end onboarding process includes three key areas of improvement by introducing a five-phase approach to the supplier onboarding. Firstly, the onboarding process enhancement was performed by combining such methods of supply chain management such as responsibility management, supplier selection, and performance measurements. Secondly, risk management process was introduced due to the existence of “empty activities” in the RACI matrix. Risk management introduced practices to identify risks, log them, and then transform into a problem that can be owned. Lastly, process standardization was presented by introducing a set of standardized documents and alignment with ISO standard was created to evaluate the quality of the supplier’s product.
With a standardized onboarding process and built-in practices, the case company will be able to minimize the risks in the supply chain related to the supplier operation. Also, by implementing the end-to-end onboarding process case company will ensure that risks are identified in the early phases of the cooperation with a new supplier. Such risks include the performance of the supplier, product-related risks, logistics risks, etc. Furthermore, it allows the company to automate the process, save time by keeping process standardized and in the end, it can improve the performance of the deliveries. Currently, the case company is planning to begin the implementation of the most critical parts of the proposed end-to-end onboarding process.