Bakgrund: Rottne industri är ett företag som tillverkar skogsmaskiner, närmare bestämt skördare och skotare. En viktig del av företagets strategi i dagsläget grundar på att bedriva en generös reservdelsverksamhet ut mot kunder. Reservdelsverksamheten har vuxit och blivit en konkurrensfördel för Rottne industri. För att behålla sin plats på marknaden är det viktigt att konkurrensfördelen behålls och reservdelsverksamheten effektiviseras. Vi har i samråd med lagerchefen på Rottne industri valt att utveckla ett performance management-system. Studien har tagit sin utgångspunkt i performance management-processen som består av fem steg som kopplats till separata problemfrågor. Syfte: Studiens syfte är att utveckla ett performance management-system åt Rottne industris reservdelslager i avsikt att ge företaget en utgångspunkt för kontroll och styrning av deras prestationer. Metod: Uppsatsen är uppbyggd på en kvalitativ metod. Uppsatsens synsätt är positivism och ett abduktivt angreppssätt tillämpas. Insamling av empirisk data sker främst genom intervjuer. Slutsats: För att Rottne industri ska behålla sin konkurrensfördel bör de främst fokusera på fyra måttgrupper; leveranstid, leveransprecision, orderkvalitet och servicegrad. Prioriteringen för dessa måttgrupper skiljer sig något beroende på vilken kundgrupp som avser att betjänas. För brådskande orders, som kopplas till slutkunder är leveranstid, orderkvalitet och servicegrad viktigaste, och för påfyllningsorders, som rör återförsäljare är leveransprecision, orderkvalitet och servicegrad viktigast. Höga mål bör sättas upp för viktiga måttgrupper och bör revideras när omvärlden förändras. Sökord: Performance management, performance management process, performance management system, performance measurement, spare part logistics, aftermarket logistics, target setting. / Title: Performance management - A case study on spare part logistics at Rottne industri Authors: Max Lidby, Philip Ringström Tutor: Peter Berling Background: Rottne industri is a company that manufactures forestry equipment. An important part of the company’s strategy is based on conducting a generous spare parts business to customers. The spare part business has grown and become a competitive advantage for Rottne industri. To keep its position in the market it is important that the competitive advantage is retained. In agreement with the warehouse management we have chosen to develop a performance management system. The study has been based on the performance management process that consists of five steps which has been linked with separate research questions. Purpose: The aim of this study is to develop a performance management system for Rottne industri’s warehouse in order to give the company a starting point for monitoring and control of performance. Method: The paper is based on a qualitative approach. Thesis approach is positivism and an abductive approach is applied. Collection of empirical data is mainly done through interviews. Conclusion: In order to maintain its competitive advantage Rottne industry should primarily focus on four groups of metrics; delivery time, delivery reliability, order quality and service level. The priority for these groups of metrics are slightly different depending on which group of customers Rottne industri intend to serve. For urgent orders the delivery time, order quality and level of service most important, and for replenishing orders delivery reliability, order quality and level of service is the most important. High targets should be set for important groups of metrics, and should be under continuous review when circumstances change. Keywords: Performance management, performance management process, performance management systems, performance measurement, spare part logistics, aftermarket logistics, target setting.

The bullwhip effect is defined as an upstream amplification of demand variability and has received interest within multinational companies for decades. As early as in the 1950’s, Forrester (1958) discussed what is today known as the bullwhip effect, which has a negative impact on the customer service, costs, and inventory investment in a supply chain (Lee et al., 1997). Even though the bullwhip effect has been noticed in various industries, the consequences, in form of decreased availability and increased costs the further up the supply chain the bullwhip goes, still remain. The employees at Volvo Group Service Market Logistics suspect that their supply chain has been affected by the bullwhip effect and want to know if it is correct and subsequently know why it has occurred. Therefore, this master’s thesis highlights the root causes of the bullwhip effect and presents strategies to mitigate it. To understand how the bullwhip effect affected the Volvo Group Service Market Logistics’ supply chain, the purpose was formulated as follow: The purpose of this study is to identify events in the Volvo Group Service Market Logistics’ supply chain where the bullwhip effect has occurred, its root causes, and how to reduce or eliminate the bullwhip effects.  The studied flow was from the Central Distribution Center (CDC) in Ghent, to the Regional Distribution Center (RDC) in Brazil, to the Dealers associated to the RDC in Brazil, and the customers. Data was collected from each node and events were studied to find bullwhip events. After sorting out the part numbers that passed the criteria for bullwhip events, the amount of data had to be reduced even more. A couple of different conditions were applied which resulted in four suitable bullwhip events. Thereafter, the authors conducted interviews with Logistics Managers at each node of the supply chain to find the root causes of the bullwhip effect in each studied event.  Among the several found root causes, lack of information transparency was the most frequent occurring root cause, found in three out of four studied bullwhip events. Insufficient communication and lack of information sharing cause bullwhip effects, and the authors found that improved communication both between and within the nodes will contribute to better planning, and consequently avoided bullwhip effects. Other root causes found were issues with the ordering system, lack of learning and experience, neglected lead times, fear of empty stock, price fluctuations, and phase-out of the spare part.  To reduce or eliminate the bullwhip effect, the focus was on mitigating the root causes since the root causes create opportunities for the bullwhip effect to occur. Four suggestions were given with suitable mitigation strategies found in the literature, where the four suggestions were sales campaigns, prepare for boosts, keep track of manually placed orders, and ordering system and Logistics Manager behavioural issues. The suggestions could then be connected to the different found root causes. The stated suggestions and mitigation strategies focused on mitigating the root causes in a long-term perspective and consequently the bullwhip effect itself.