Developing Indirect Procurement in Road Safety Solutions Company
Jaskari, Maija (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202504095981
https://urn.fi/URN:NBN:fi:amk-202504095981
Tiivistelmä
This thesis deals with the challenge of developing indirect procurement in road safety solutions company. The recent acquisition and merger of two industry-leading companies, along with several simultaneous development projects, have required prioritising certain operations over others. Consequently, the process of indirect procurement has not received the necessary level of attention. Uncontrolled indirect procurement has caused inefficiency and overlapping work and lowering profitability. Additionally, it has led to a broad and uncontrolled supplier base, preventing the company from utilising the advantages of centralised procurement and negotiated terms.
The theoretical framework of this thesis concentrated on three main topics and was built to provide the theoretical foundation and a broader view of the key concepts relevant to the development project. The first focus area addressed significance of the procurement function within organizations, while the second area focused on indirect procurement and its categories. The third topic related to strategic approach to procurement and relevant themes such as the Kraljic Matrix, category management, supplier relationship management, and utilising digitalisation in procurement.
In the development part, the main target of the thesis was to find improvement areas and increase the visibility of indirect procurement within the case company, while also emphasising its critical role in achieving organisational goals. This was accomplished by analysing the current state, cost structure, and supplier base of the case company. The main findings, along with the short-term improvements already achieved and the action plan created, have established a solid foundation for further development initiatives. These efforts are significantly contributing to the process of continuous improvement within the case company.
The theoretical framework of this thesis concentrated on three main topics and was built to provide the theoretical foundation and a broader view of the key concepts relevant to the development project. The first focus area addressed significance of the procurement function within organizations, while the second area focused on indirect procurement and its categories. The third topic related to strategic approach to procurement and relevant themes such as the Kraljic Matrix, category management, supplier relationship management, and utilising digitalisation in procurement.
In the development part, the main target of the thesis was to find improvement areas and increase the visibility of indirect procurement within the case company, while also emphasising its critical role in achieving organisational goals. This was accomplished by analysing the current state, cost structure, and supplier base of the case company. The main findings, along with the short-term improvements already achieved and the action plan created, have established a solid foundation for further development initiatives. These efforts are significantly contributing to the process of continuous improvement within the case company.