Zugl.: Hannover, Univ., Diss., 2007

What role has sourcing for the logistical outcome when Swedish Armed Forces (FM) plan for and conduct Peace Support Operations (PSOs)? What are the logistic needs to support the operating units? Can logistics in itself contribute to the overall goals with the PSOs? It depends of course on how the logistics are organised and what is required in order to support the military operations. The research on military logistics in general is limited and within the conduct of small nations forces almost non-existent. The role of sourcing depends on the military supply chain and FM decisions on make or buy, choice of market, number of suppliers and relations with the supplier. Therefore this thesis addresses how the sourcing decisions impact the military logistics in FM PSOs and the achievement of short-term and/or long-term objectives. The short term objectives represent the operational needs and the long term objectives represent the overall goals for PSOs. In order to understand the military logistics in PSOs a thorough review of the literature in the field was conducted. A second review was done with the focus on the four sourcing decisions. FM PSOs during the period 2002-2010 were studied. The case focused on  two on-going operations, in Liberia and in the Bay of Aden, and complementary information was collected from a third operation, in Afghanistan. Also the central processes in the headquarters and the connections upstream to the Swedish government and the international relations were studied. The case was built up by interviews, field visits and secondary data. For military logistics in PSOs, three areas on different levels, with in total twelve constructs of importance were developed. Of special importance is the logistic tier structure. The sourcing was one of four logistic key decisions. The sourcing decisions turned out to change between different logistic phases. One of the findings was that the decisions proved to be of importance for the logistic outcome. The make or buy decision enabled responsiveness in the logistics system in a hostile environment. Proximity between customer and supplier showed to be important for all phases in an on-going Peace support operation. Due to the security situation in PSOs, dual sourcing showed to be important in order to create redundancy in the supply chain. The supplier relations changed from arm’s length to partnership when an operation was initiated, which improved the responsiveness. The Swedish Public Procurement Act placed limitations on the procuring organisations to utilise the possibilities to be efficient and effective.

Course:        Bachelor Thesis in Business Administration, 15 ECTS   Topic:          The Impact of Strategic Purchasing on an Organization’s Profitability                      A Case Study of Ghana Telecom Company                                                     Supervisor:     Mats Viimne Background:  The purchasing function contributes directly to the operating results and                        profitability of an organization. It has been argued out that, the fact that                        purchasing is responsible for spending more than 60 percent of an organization’s                            sales dollars highlights the profit-enhancing potentials of the purchasing on an                        organization.                                     Problem:       How can strategic purchasing affect the profitability of an organization?   Purpose:       The purpose of this research is to describe how strategic purchasing impact on                       the profitability of Ghana Telecom Company.       Method:      The author collected both primary and secondary data in order to fulfill the                       purpose of the paper; the primary data was gathered directly from relevant sources                     in Ghana Telecom Company, through telephone and email interviews. The                     secondary data was obtained from indirect sources, such as textbooks, articles, and                     websites. The method used can be described as a qualitative.   Conclusion: An organization’s purchasing strategy is becoming recognized as a strategic weapon                     equal in importance to its marketing, conversion and finance strategies as pointed                      out by Dobler et al. Ghana Telecom Company’s strategic approach to buying include                     multiple sourcing, short-term contracting and competitive bidding as a measure                     towards increasing its profitability by being able to source at the lowest cost, and                     having other sourcing alternatives, which leads to cost reduction.

Purpose – The aim of this study is to explore how outsourcing affects developing countries. The effects are examined for Ghana and Vietnam, which have recently become attractive outsourcing locations. They are compared with China and India, both well known for their outsourcing sectors and their attractiveness as outsourcing locations.   Design/methodology/approach – In this research paper an exploratory method is applied. During the examination economic data provided by supranational organizations is used to measure the effects of outsourcing. Data is collected to match the requirements of the applied triangular model for measuring. Background for the data collection is the triangular model by Granger. Key figures for observation are Gross Domestic Product (GDP), Foreign Direct Investment (FDI), exports, and their correlations. Validity and reliability is ensured through cross examination of the model.   Findings – The effects of outsourcing vary a lot. All key figures rose in general during the observed 30 years, from 1981 till 2010. The correlations show that there are eventual relations of the figures, although direct relations each by each year are not found. The most remarkable finding is that FDI might indeed push the exports. Export rates are rising in the years after the investment is done. The relation of FDI and GDP show that there can be interrelations as well, but if the GDP is increased in higher rates than the FDI is done. An overall result of the examination is that Vietnam seems to rely heavily on outsourcing as they export almost ¾ of the fabrications whereas it is assumed that Ghana tries more on development and improvement of the whole economy.   Originality/value – This research paper looks at the often discussed phenomenon outsourcing by focussing on its economic effects by focussing on the effects for the developing countries Vietnam and Ghana. It provides the reader with new aspects to be considered in the surrounding of outsourcing. Further investigations are necessary to explore if the found can be generalised.

This dissertation consists of two parts. The first part isabout“Managing buyer-supplier relationships in autoproduction chains ­ a case study of Volvo and its supplierrelationship management”. The second part is about“Managing buyer-supplier relationships in telecom supplychains ­ a case study of Ericsson and its supplierrelationship models in different business situations”. The scope of this study is restricted to supply chains inautomotive and telecommunication industries, where the successof supply processes is dependent on how well a company managesits supply chain with horizontal or vertical integration tofulfill customer demands. The research is carried out as a number of case studies ofbuyer-supplier relationship management in the auto and telecomsupply chains. The aim was to analyze how a company fulfillscustomer demand in the best way through different supplierrelationships, and how and why alternative relationship typesare used in reality. The study is based on the relationship between two focalcompanies and their suppliers. Case study methodology is used,and data is collected from selected cases through interviewsand observations. Analysis is carried out within and acrosscases. From the case interpretation and analysis, conclusionsare drawn as to which strategic level of buyer-supplierrelationship is appropriate for different situations. As a result and in conclusion, a static supplychain-reaction model is built at the end of the Part I. Thestatic model describes the importance of collaborativebuyer-supplier relationships in the product developmentprocess. Based on this model, it is concluded in Part II thatthe most suitable supplier relationship is different fordifferent products. For the same product, the most appropriatebuyer-supplier relationship varies with the product’s lifecycle timing. Therefore, two dynamic buyer-supplierrelationship models under different business conditions and indifferent product life-cycle periods are created in Part II.The models apply to dynamic processes, not to interactingcompany organizations in general. The study increases the knowledge regarding selection of themost appropriate supplier relationships in different businesssituations. Key words:buyer-supplier relationship, sourcingstrategy, supply chain management / <p>Qc 20130827</p>

This thesis considers standardizing service requirement specification for IT sourcing. The potential benefits a standardization of service requirements writing combined with Scania IT:s developing strategy have created a need for an investigation about how requirements standardization for IT sourcing could be done. This thesis is built upon three different approaches, requirements engineering, service oriented requirement engineering and best practices. Combined, these different approaches comprise the theory model RSB that will be used in the requirements standardization work. The strategies for collecting data, the authors choose embedded case study. The main problem at Scania IT regarding requirements specification in sourcing is the absence of a standard. The service requirements specifications varies in quality and execution, which causes communication problems. In order to standardize the requirements specification, the authors of this thesis have developed a standardization model consisting of three phases. A template is developed and presented in this thesis, the template is also included in the standardization phases model. The template created in this thesis, based on the RSB-model combined with the empirics, shows how a standard template can be designed. This study also suggests a three-phase model for working with standardization in the future. The standardization model suggest a requirements management software connected to a database.

The three essays that comprise my dissertation are drawn from a longitudinal field study of the work process innovation of sourcing professionals at a large multinational paper products and related chemicals manufacturing firm. The focus of this study is an examination of how characteristics of the work process innovation context impact enterprise system (ES) acceptance, rich ES use behavior and the resulting individual-level job outcomes realized by knowledge workers in a strategic business process. The ES, an enterprise sourcing application, was introduced to innovate the work processes of employees who perform the sourcing business process. Over a period of 12 months, we collected survey data at four points in time (pre-implementation, immediately following training on the new system; following six months of use; and, following 12 months of use) to trace the innovation process as it unfolded. The three essays that comprise my dissertation focus on three key gaps in understanding and make three corresponding key contributions. The first research essay focuses on the transition from an emphasis on behavioral intention to mental acceptance in mandatory use environments. This essay contributes to the technology acceptance literature by finding that work process characteristics and implementation characteristics are exogenous to beliefs about the technology and that these beliefs are important to understanding mental acceptance as well in mandatory use contexts. The second and third research essays emphasize the transition from lean use concepts to conceptualizing, defining and measuring rich use behaviors and show that use must be captured and elaborated on in context. This is pursued through the development of two rich use constructs reflective of the sourcing work context and the complementary finding of countervailing factors in the work process that may impede the positive impact of rich use behaviors on job benefits.

Syftet med denna studie är att belysa vilka faktorer som ligger bakom företags beslut att själva äga eller outsourca hela eller delar av transportfunktionen. På en global marknad inser fler och fler företag att de inte besitter den kompetens som krävs i den allt tuffare konkurrensen. Det blir nödvändigt att samarbeta med andra företag för att kunna utnyttja deras kompetens och därigenom skapa konkurrensfördelar. Det har länge pågått en diskussion kring outsourcing som ett svar på detta ökade konkurrenstryck. Debatten kring in- och outsourcing har historiskt fokuserats mycket på kärnkompetens som en drivande faktor när företag ska besluta vad de själva ska producera kontra att lägga ut på marknaden. Röster har dock höjts för att utvidga förklaringsmodellen till att inkludera transaktionskostnadsperspektivet. Studien inriktar sig på den svenska livsmedelsbranschen och på hur företag har valt att organisera sin transportfunktion med avsikt på in- och outsourcing. Studien är genomförd med en kvalitativ ansats. Empiri samlades in genom tio semistrukturerade intervjuer från tio företag som alla är verksamma inom den svenska livsmedelsbranschen. Fyra företag är verksamma inom dagligvaruhandeln, tre företag är verksamma inom restaurant- och grossisthandeln och tre företag är producenter och leverantörer av dryckes- och färskvaror till både dagligvaru- och grossisthandeln. Bland företagen finns några av de största aktörerna på den svenska marknaden. En genomgång av tidigare forskning genomfördes för att konstruera en teoretisk referensram som sedan låg till grund för analysen. De begrepp som används i teoriavsnittet är Marknadsfaktorer, Specifika tillgångar, Osäkerhet/Mätning samt det Resursbaserade synsättet. Studien visar att företag in- eller outsourcar på grund av olika faktorer. Den visar i likhet med tidigare forskning att transaktionskostnadsperspektivet kombinerat med kärnkompetens ger en grund utifrån vilken beslut om in- och outsourcing kan förklaras. Vidare visar studien tydligare än tidigare studier att Marknadsfaktorer såsom svängningar i efterfrågan, fyllnadsgrad och transportavstånd spelar roll för företags sourcingbeslut. Detsamma gäller transaktionens Osäkerhet/Mätning, en hög grad av osäkerhet i transaktionen ökar företags benägenhet att insourca transportfunktionen.

Recent years, foreign manufacturers have extended their manufacturing footprint to include China. According to the World Bank China has overtaken Japan as the world’s second-largest economy since 2010. China’s growth is largely funded by a continuous manufacturing boom where both domestic industries and infrastructure have developed extensively, facilitating foreign-owned manufacturing companies to locate production in China. An important issue of common interest to all manufacturing companies in the course of localising production to China is how to develop an efficient supply base.The purpose of the thesis is to identify the factors related to local supply base development that affect production localisation in China. An identification and analysis of factors for foreign manufactures to consider when developing the supply base for their China production facilities is presented.The thesis work is executed based on a comprehensive literature study and interviews with twelve manufacturing firms (comprising eight foreign manufacturers and four local supplier companies) in China from April to July, 2012. The thesis investigates factors of importance to supply base localisation in China. The analysis of the empirical and theoretical findings constitutes the bases for increased understanding supporting foreign manufactures, especially for those small and medium firms, in their development of a supply base and sourcing strategy for production in China.

For the past several decades, there has been a fundamental dispute between the appropriate mechanism for repeat procurement. On one hand, the supporters of Porter (1979) advocate a competitive setting where short-term contracts are used to increase buyer power and lower supplier prices. On the other hand, the supporters of Deming (1986) advocate the idea of long-term contracts to align buyer and supplier incentives. This trade-off between long-term and short-term contracts has fundamentally affected the practice of procurement, with most suppliers opting for hybrid strategies such as Incumbent Biasing: a strategy characterized by short-term contracts with frequent rebidding with an advantage given to the incumbent. This work examines this hybrid strategy to determine its effectiveness. First, we create an empirical model that identifies and measures the trade-offs between the Porter and Deming strategies. Using this model, we find that Incumbent Biasing has an impact on procurement performance via two mechanisms: first, Incumbent Biasing decreases bidding competitiveness in repeat procurement bidding, which decreases performance; second, Incumbent Biasing has a moderating effect where it improves incentive alignment between the buyer and supplier and improves procurement performance. We show that depending on the current contract design, the net effect of Incumbent Biasing on overall procurement performance can be either positive or negative. This is first work to empirically test the impact of Incumbent Biasing on procurement performance and the first to identify the positive and negative mechanisms by which this impact occurs. Using this research, managers will be able to identify their firm's position with regards to incentive alignment with their supplier to determine if Incumbent Biasing has a net positive effect for their firm. After identifying the impact of Incumbent Biasing on procurement performance, we contribute to the literature by testing this analysis through two additional extensions. First, using secondary data analysis we show that our construct for procurement performance is correlated with firm performance. We do this by comparing the answers to our procurement performance construct items to the change in gross margin of the publicly traded respondents in our study over time. This shows that our construct is not only reliable, but that procurement performance has a positive impact on overall firm performance. This is the first work to provide an empirical construct for procurement performance that is validated via secondary data analysis of firm performance. Second, we test a competing theory to Incumbent Biasing which is Multi-Sourcing: the strategy of spreading a contract to multiple suppliers to maintain competitiveness in bidding. Approximately $46\%$ of our sample identify as using both strategies simultaneously and we test for an impact between the two. We show that the two strategies to not impact each other and can be viewed independently. Subsequently, we test two Multi-Sourcing constructs in our model and find that there is no significant impact on bidding competitiveness from Multi-Sourcing. Subsequently, we examine the impact of repeatedly awarding a contract to a pool of bidders. In our model, one contract is bid repeatedly over time, resulting in bidders gaining information about their competitors' cost. The academic literature is mixed on how a buyer should approach this type of contract bidding interaction. On one hand, it is argued that establishing an awarding structure that favors the incumbent decreases the frequency of switching, and thus cost. On the other hand, it is argued that an awarding structure that favors the non-incumbent (entrant) bidders places competitive pressure on the incumbent and generates low margin bids. This issue is further complicated by the practice cited in the academic literature of ``defection', where entrant firms either perceive a bias or believe that their cost is uncompetitive and will not bid in future stages. We create a framework that explores the apparent contradictions in these recommendations and gives conditions when biasing toward the incumbent or entrant should be implemented. We first characterize bidders based on their effort to bid and their cost to supply the contract. We then show that in the case of low effort to bid and high cost for the entrant, entrant biasing is optimal; when the reverse is true incumbent biasing is optimal. Using the results from our analysis, we provide guidance to buyers facing a repeated procurement