Sourcing during tendering phase

Abstract

This thesis proposes ideas to help increasing involvement of the Sourcing team in the tendering process to improve tender performance. The case company sells elevators and different lifting devices in marine environment. Because of the global commodity price increase which has driven aggressive competition in this business, the margin became unacceptable. As action, the case company sees saving potential in increasing the involvement of its sourcing team in the tendering process.

The research approach used is design research. The thesis counts four steps to get to the outcome. Based on the strengths and weaknesses, of the actual sourcing involvement during tendering identified in the current state analysis, best practices are researched in the literature review. Considering those two first steps, an initial proposal is issued. As last step, the final proposal is validated by correcting the initial proposal.

This thesis has revealed the importance and the necessity for an early sourcing involvement. All employees, no matter their seniority, have shown a great participation and confirmed the need for the sourcing collaboration during tendering phase. The early sourcing involvement was clearly missing in the case company.

The thesis finishes with the proposal of ideas to help tendering and sales teams to benefit from Sourcing supports already during the tendering phase.