Creating a Post-merger Global Tactical Sourcing Process for Metso Outotec
Santasärkkä, Sebastian (2022)
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022052512050
https://urn.fi/URN:NBN:fi:amk-2022052512050
Tiivistelmä
The objective of this thesis was to create a global process for Metso Outotec Tactical Sourcing team after the merge. Metso Outotec is a Finnish publicly traded company that was established in 2020 when Outotec and Metso Mineral merged. The company is a frontrunner in sustainable technologies, end-to-end solutions and services for the minerals processing, aggregates, metals refining and recycling industries globally. The business challenge for the thesis was to harmonize the current working processes and methods of the two legacy companies, and create a global process for the Tactical Sourcing team.
The study was conducted using applied action research approach and used qualitative research methods, such as interviews, discussions, observations and workshops. The data was collected in three phases, for the current state analysis, the proposal building and validation of the proposal.
The current state analysis pointed to the challenges in the current process where two legacy companies are using their own processes and tools. The conceptual framework of the thesis focused on the topics of selecting (1) the communication channels and tools which will be used throughout the tactical sourcing organization, (2) creating a unified working process for the tactical sourcing team which will be implemented for both ex-legacy companies with the aim of working as one organization and (3) managing change to ensure that the change process is managed efficiently.
The proposal was built via co-development with the internal stakeholders and focused on the development of one unified working process that will be implemented globally and in addition the appropriate tools were selected for this new unified process. The selected tools were Jaggaer and Salesforce. In the new process global quotation support (GQS) creates a case for tactical souring in Salesforce and tactical sourcing uses Jaggaer to send out the quotes to the suppliers. Once the quotes are received, tactical sourcing send pricing and lead time information back to GQS via Salesforce.
The outcome of this thesis is the unified global tactical sourcing process for the case company after the merger. The process was evaluated by the key stakeholders as ready for implementation which should start in June 2022 at the earliest. This new global unified working process was needed for the case company, especially after the recent merge, as it brings the benefits of a clear single process across the tactical sourcing organization globally.
The study was conducted using applied action research approach and used qualitative research methods, such as interviews, discussions, observations and workshops. The data was collected in three phases, for the current state analysis, the proposal building and validation of the proposal.
The current state analysis pointed to the challenges in the current process where two legacy companies are using their own processes and tools. The conceptual framework of the thesis focused on the topics of selecting (1) the communication channels and tools which will be used throughout the tactical sourcing organization, (2) creating a unified working process for the tactical sourcing team which will be implemented for both ex-legacy companies with the aim of working as one organization and (3) managing change to ensure that the change process is managed efficiently.
The proposal was built via co-development with the internal stakeholders and focused on the development of one unified working process that will be implemented globally and in addition the appropriate tools were selected for this new unified process. The selected tools were Jaggaer and Salesforce. In the new process global quotation support (GQS) creates a case for tactical souring in Salesforce and tactical sourcing uses Jaggaer to send out the quotes to the suppliers. Once the quotes are received, tactical sourcing send pricing and lead time information back to GQS via Salesforce.
The outcome of this thesis is the unified global tactical sourcing process for the case company after the merger. The process was evaluated by the key stakeholders as ready for implementation which should start in June 2022 at the earliest. This new global unified working process was needed for the case company, especially after the recent merge, as it brings the benefits of a clear single process across the tactical sourcing organization globally.