Developing supplier risk management in international security company
Kaasinen, Susanna (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202401191554
https://urn.fi/URN:NBN:fi:amk-202401191554
Tiivistelmä
The purpose of the thesis was to examine the current state of supplier risk management in the target organization, and then to create development proposals for the current processes. Target organization for this thesis is operating in security industry. Company is part of a global group and has operations in multiple countries, but the core operations like product development and manufacturing are in Finland. Procurement team in the company is having the overall responsibility of supplier relations management, and the team is therefore having a key role supplier risk management as well.
Theoretical framework for this thesis is consisting of sections regarding risks in global supply chains, including global sourcing and supply chain management, and supplier risk management in international business, which is covering both risk management processes and tools. Theoretical framework ends in agile supply chains and supply chain re-engineering, which both are getting more and more important in rabidly changing world and in complex supply chains.
Case study method was used in collecting theoretical information about supply chain risks and supplier risk management processes, and in comparing the collected information to the current situation in the target organization. During qualitative research, six semi-structured interviews were arranged with the main stakeholders for supplier risk management in the target company. The results from the interviews together with findings from literature review indicates that there are some shortages in the current risk management processes in the organization. The study revealed that there was no clear supplier risk management process created and documentation regarding supplier risks was insufficient. This has led to alternating operating models between the stakeholders, and currently some risks are perhaps not identified and managed in the best possible way.
Based on the research, a development plan for supplier risk management was created for the target organization. The plan includes four development areas: description of the whole supply chains, common process for supplier risk management, risk assessment tool, and communication about supplier risks. Repairing the identified deprivations and improving the supplier risk management processes the organization could upgrade its financial performance, increase operational execution and flexibility, and enable more efficient supply chain management.
Theoretical framework for this thesis is consisting of sections regarding risks in global supply chains, including global sourcing and supply chain management, and supplier risk management in international business, which is covering both risk management processes and tools. Theoretical framework ends in agile supply chains and supply chain re-engineering, which both are getting more and more important in rabidly changing world and in complex supply chains.
Case study method was used in collecting theoretical information about supply chain risks and supplier risk management processes, and in comparing the collected information to the current situation in the target organization. During qualitative research, six semi-structured interviews were arranged with the main stakeholders for supplier risk management in the target company. The results from the interviews together with findings from literature review indicates that there are some shortages in the current risk management processes in the organization. The study revealed that there was no clear supplier risk management process created and documentation regarding supplier risks was insufficient. This has led to alternating operating models between the stakeholders, and currently some risks are perhaps not identified and managed in the best possible way.
Based on the research, a development plan for supplier risk management was created for the target organization. The plan includes four development areas: description of the whole supply chains, common process for supplier risk management, risk assessment tool, and communication about supplier risks. Repairing the identified deprivations and improving the supplier risk management processes the organization could upgrade its financial performance, increase operational execution and flexibility, and enable more efficient supply chain management.