This master´s thesis deals with the management of the purchasing strategy in the selected business company. This company sells products to final customers. The purpose of the thesis is to monitor purchasing processes mainly focusing on the supplier selection process. Thesis contains suggestion for a systematic selection process of prospective business partners, which is divided into four phases. Proposed suggestion contributes to higher productivity of the company´s purchasing strategy and considerably eliminates risk of high dependence on the sole supplier.

This diploma thesis deals with the selection and evaluation of suppliers in the construction industry. It is divided into a theoretical and a practical part. The theoretical part focuses on corporate purchasing, supplier selection and supplier evaluation and describes the methods that solve this problem. In the practical part, the theoretical knowledge is transferred into practice. There is a questionnaire responded to by the construction companies. Based on the results of the questionnaire, four hypotheses are compiled and tested. Three managed interviews with construction company employees are also recorded. The last part is a case study. It addresses the design of the system for the selection and evaluation of suppliers in a particular construction company.

The aim of this diploma thesis is refer to the supplier evaluation and selection process in business sphere. On the business sphere is putted emphasis because securing of company sources are more and more important parts of strategic decision making. In this paper is analyzed supplier selection problem and are analyzed most common methods to determine the best supplier. The goal of this paper is proposal of own program solution of evaluation and supplier selection build on evolution methods, specifically evolution algorithms. The part of this thesis is map of theoretical possibilities of evolution algorithms and implementation of program for solving supplier selection problem.

Many sectors and industries are being pushed by policymakers and consumers towards an industrial transformation to become more sustainable. This in order to reduce the negative impact on the environment caused by the emissions of toxic substances and greenhouse gases, as well to promote more efficient use of resources. The transport sector and specifically the automotive industry is seen as one of the main actors within the climate debate due to their high environmental impact in terms of emissions. Therefore, authorities and customers are pushing automotive manufacturers to shift towards electric mobility. However, a rapid shift is not simple. The supply of raw materials needed to sustain the production of batteries does not meet the demand. In turn, causing shortages of some materials and heavily increasing their prices. This thesis addresses the supplier selection problem within a Swedish lithium-ion battery manufacturer with clients mainly in the automotive industry. The study has analyzed a set of relevant criteria to evaluate a supplier within the high-tech industry within a specific context. Furthermore, the study has determined whether differences exist between the importance of the criteria depending on the strategic profile of the material. The strategic profile depends on the profit impact and the supply risk of the material. In order to assess the importance weights of the criteria, the analytical hierarchy process (AHP) was used and interviews were conducted with purchasing experts in the industry. This study provides a new approach to the existing literature of supplier selection, by studying this process in an industry in which it has never been done and also by assessing the supplier selection by categorizing the materials by their strategic profile, an approach that has not been studied in literature until the moment. Results show that the importance of some of the supplier selection criteria vary widely between the strategic profile of the materials, while the importance of other criteria remain the same. In addition, the study has also determined that the importance of the criteria vary also within the supplier selection process, having different importance levels at different steps. Finally, the results show that some criteria of a certain criticality represent a go-no go gate in the selection process. The conclusions are that the supplier selection process within the battery industry cannot be regarded as a homogenous process and that supplier selection criteria vary with the strategic importance of the material. Thus, suppliers must be assessed with different criteria importance weights when using a tool such as the AHP to perform supplier selection. Additionally, the critical criteria for each material must be determined prior to use the tool. / Politiker och konsumenter ställer allt högre krav på industrin att genomföra åtgärder för att bli mer hållbara, exempelvis genom att minska utsläpp av giftiga ämnen och växthusgaser samt ett mer effektivt resursanvändande. Transportsektorn och bilindustrin är särskilt utpekade inom miljödebatten på grund av deras höga miljöpåverkan och stora mängder av utsläpp. Biltillverkarna drivs därför mot en industriell omvandling där förnybara bränslen ska ersätta fossila bränslen. Övergången till eldrivna fordon är en långsam och komplicerad process där flödeskedjan för effektiv tillverkning av bilbatterier fortfarande är under utveckling. Tillgången på vissa råmaterial som behövs för produktionen av batterier räcker inte för att mätta efterfrågan vilket drar upp prisnivån. Samtidigt etablerar sig många nya leverantörer av råmaterial vars varierande kvalitet och pålitlighet skapar ytterligare utmaningar hos batteritillverkarna. Studien behandlar urvalsprocessen vid inköp av material hos en svensk litium-jonbatteritillverkare med kunder främst inom bilindustrin. Urvalskriterier för att utvärdera leverantörer inom högteknologisk industri analyserats. Därtill har det utretts om skillnader existerar mellan kriteriernas betydelse beroende på råvarornas strategiska profil. Den strategiska profilen beräknas genom dess påverkan på produktens slutkostnad tillsammans med risken för avbrott i försörjningskedjan. Metoden Analytic Hierarchy Process (AHP) används för att bedöma dessa kriteriers betydelse. Därtill har intervjuer genomförts med branch-experter för att ge fördjupad insikt i kriteriernas betydelse. Studien ger två huvudsakliga bidrag till den akademiska litteraturen. Först och främst utvärderas urvalskriterierna, som identifierats i litteraturstudien, inom en industrisektor där de inte prövats tidigare. Urvalskriterierna för leverantörsval appliceras dessutom specifikt för råmaterial av olika strategisk profil för att studera i vilken utsträckning de skiljer sig åt. Även denna ansats är tidigare oprövad inom den akademiska litteraturen. Resultaten visar att vikten av vissa kriterier varierar i hög utsträckning mellan material av olika strategisk profil, medan andra kriterier är näst intill opåverkade. Studien har dessutom fastställt att betydelsen av vissa kriterier varierar mellan olika steg i urvalsprocessen. Somliga kriterier representerar en kritisk punkt i urvalsprocessen och utesluter de leverantörer som inte kan leverera upp till en miniminivå. Studiens slutsas är att urvalsprocessen vid val av leverantör inom batteribranschen inte kan ses som en homogen process då urvalskriterierna varierar med materialets strategiska betydelse. Råmaterialens strategiska profil måste alltså tas i beaktning vid användning av ett urvalsverktyg som AHP. De kritiska kriterier som leverantören måste leva upp till måste dessutom fastställas innan verktyget kan tas i bruk.

Performance-based contracting (PBC) is an outcome-based product support strategy that provides efficient performance solutions for buyers. Suppliers under performance-based contracting are rewarded after achieving desired performance objectives. While current scholarship has deepened our knowledge of the benefits of PBC, the particular factors behind effective and efficient performance-based contracts (PBCs) are still vague. Thus, this dissertation will focus on essential dimensions for the successful PBC. There remains a great deal that is not understood about the success factors for effective PBCs. When looking at the critical criteria for the selection of suppliers in the context of PBC, even less is known. This dissertation contains three essays with the purpose of: (1) investigating the effect of supply chain collaboration and upfront investments on the benefits of the PBC; (2) exploring supplier selection criteria for successful PBC; and (3) examining the effect of contract length and fleet size on upfront investments for effective and efficient PBC. These three essays offer a solid foundation for theoretical and practitioner understanding for effective PBCs.

There have been several infamous incidences where world-renowned corporations have been caught by surprise when a low-tier downstream supplier has been publicly found to be non-compliant with basic corporate social responsibilities (CSR) codes. In such instances, the company reputation, and consequently financial health, suffer greatly. Motivated by the advances in predictive modeling, we present a predictive analytics model for detecting possible supplier deviations before they become a corporate liability. The model will be built based on publicly available data such as news and online content. We apply text mining and machine learning tools to design a corporate social responsibility "early warning system" on the upstream side of the supply chain. In our literature review we found that there is a lack of studies that focus on the social aspect of sustainability. Our research will help fill this gap by providing performance measures that can be used to build prescriptive analytics models to help in the selection of suppliers. To this end, we use the output of the predictive model to create a supplier selection optimization model that takes into account CSR compliance in global supply chain context. We propose a heuristic to solve the problem and computationally study its effectiveness as well as the impact of introducing CSR on procurement costs as well as ordering and supplier selection patterns. Our models provide analytics tools to companies to detect supplier deviance behaviour and act upon it so as to contain its impact and possible disruptions that can shake the whole supply chain. / Thesis / Master of Science (MSc)

Companies in the construction industry have a wide range of choices of suppliers for the company's needs in building materials. Local (in-state) suppliers within key southern states have issues gaining market share within the construction sectors. Construction companies often outsource their purchase of wood products from a different state or country, which adversely affects the local economy due to not purchasing from in-state or local wood product suppliers. Construction companies are often not aware of local suppliers due to lack of resources or general lack of knowledge. The primary research question of this thesis is: can construction company procurement decisions and supplier selection methods help local wood product suppliers gain more market share within the construction industry? Companies within the states of Georgia, Texas, Oklahoma, South Carolina, Florida, and Virginia were interviewed over the phone and in person to determine how the companies choose the wood product suppliers and what factors impact the purchasing decisions. Key factors included: cost, quality, delivery, flexibility, location, relationship, and payment options. A survey of construction companies was created and conducted after the interviews were concluded. Important factors highlighted by the survey responses included: cost, quality, relationship, and lead time in choosing a supplier. Suppliers were asked to differentiate their products using information the construction companies highlighted as factors they emphasized. Construction companies offered insight into how they purchase wood products, the factors they desire in their suppliers, and how often they purchase in-state. In-state wood product suppliers have an opportunity to gain market share within the construction industry using the factors those construction companies favored in interviews and survey results. / Master of Science / Companies in the construction industry have a wide range of choices of suppliers for the company's needs in building materials. Local (in-state) suppliers within key southern states have issues gaining market share within the construction sectors. Construction companies often outsource their purchase of wood products from a different state or country, which adversely affects the local economy due to not purchasing from in-state or local wood product suppliers. Companies within the states of Georgia, Texas, Oklahoma, South Carolina, Florida, and Virginia were interviewed over the phone and in person to determine how the companies choose the wood product suppliers and what factors impact the purchasing decisions. Key factors included: cost, quality, delivery, flexibility, location, relationship, and payment options. A survey of construction companies was created and conducted after the interviews were concluded. Important factors highlighted by the survey responses included: cost, quality, relationship, and lead time in choosing a supplier. Suppliers were asked to differentiate their products using information the construction companies highlighted as factors they emphasized. In-state wood product suppliers have an opportunity to gain market share within the construction industry using the factors those construction companies favored in interviews and survey results.

Purpose – The purpose of this master thesis is to explore how an e-tailer selling bulky items can use a multiple criteria ABC analysis to make its purchasing process more effective, while balancing richness and reach, with the performance measurements of profitability, total asset turnover and inventory turnover. The purpose will be accomplished through a single case study on an e-tailer active on the Swedish furniture and home furnishing market. Methodology – This thesis applies a multiple criteria ABC-analysis to a single case study. The approach is semi-deductive as theory is combined with interviews on how to match and adapt theory about inventory control and purchasing with the specific requirements of an e-tailer selling bulky items. Findings – This thesis has resulted in a set of recommendations that aim to make the purchasing process of an e-tailer more effective. That is, capital and inventory space will be better allocated to the e-tailer’s more profitable items. Among other things, this thesis shows how dead articles can be identified and how a purchaser can prioritize more profitable articles over less profitable ones when making procurement decisions. The other recommendations are for the e-tailer to investigate the possibilities of decoupling the supply chain by keeping stock at the suppliers’ premises, to match the supplier reliability with their importance in the supply chain, and lastly to explore possibilities of drop shipment. Further, the main finding is that a comparison between the A-, B-, and C-classes and the reliability of the suppliers, highlights a gap and a possible risk. Put differently, the importance of a specific item for the business should be reflected in the choice of supplier and the multiple criteria ABC analysis is the tool to illustrate the importance. Keywords – E-commerce, E-tailer, richness, reach, transaction cost, ABC analysis, multiple criteria ABC, MCABC, inventory turnover ratio, supplier selection, purchasing Paper type – Masters thesis / Syfte – Syftet med detta examensarbete är att undersöka hur en e-handelsdetaljist som säljer skrymmande artiklar kan använda en flerdimensionell ABC-analys för att göra sin inköpsprocess mer effektiv och balansera richness och reach, med mätetal som lönsamhet, kapitalomsättningshastighet och lageromsättningshastighet. Syftet kommer att uppfyllas genom en fallstudie på en e-handelsdetaljist verksam på den svenska möbel- och heminredningsmarknaden. Metod – Denna fallstudie använder sig av en flerdimensionell ABC-analys. Tillvägagångssättet är semi-deduktivt då intervjuer och teori om hur lagerstyrning och inköp kan matchas och anpassas till ett företags specifika behov. Resultat – Den här uppsatsen har resulterat i en rad åtgärder som syftar till att göra en ehandlares inköpsprocess mer effektiv. På så vis att kapital och lageryta bättre allokeras till ehandlarens lönsamma artiklar. Bland annat visar den här uppsatsen hur döda artiklar kan identifieras och hur inköparen kan prioritera mer lönsamma artiklar över olönsamma vid inköp. De andra åtgärdena handlar om att undersöka möjligheter att frikoppla försörjningskedjan genom att lagra produkter hos leverantören, att matcha leverantörernas pålitlighet och deras betydelse i försörjningskedjan, och slutligen att utforska möjligheter att utöka drop shipment. Det främsta bidraget är att eventuella felprioriteringar och risker blir tydliga genom en jämförelse mellan A-, B- och C-klasserna och leverantörernas pålitlighet. Med andra ord bör den affärsmässiga inverkan som respektive artikel har på e-handlarens resultat avspegla sig i valet av leverantör. En flerdimensionell ABC-analys kan användas för att påvisa respektive artikels affärsmässiga inverkan. Publikationstyp – Examensarbete för utbildning till civilingenjör (masteruppsats).

ABB is a global company with a leading position in power and automation technologies. Being active on a global market creates a high pressure to always develop the business and reduce costs in order to stay competitive. The purchasing function at ABB ́s unit Control Products is divided into a strategic- and an operative purchase department. The negotiated setups the strategic purchasers establish with the suppliers have been shown to affect the transport- and inventory costs that are charged to the operative purchase department. In order to determine whether more beneficial setups could be negotiated by including transport- and inventory costs when they are evaluated, this case study has been requested. Two master students from Linköping University have conducted the study and by investigating different setups, conclusions to answer the study ́s purpose could be drawn. The purpose is presented below. The study’s purpose is to recommend future guidelines for the strategic purchasers at ABB’s unit Control Products that can be applied when negotiating with suppliers, by evaluating purchase-, transport- and inventory costs. In order to investigate how the purchase-, transport- and inventory costs were affected by different setups, four different cases were defined. Each case included a specific article, which was chosen based on its properties and its current and alternative setups. The conducted literature reviews and interviews with employees at Control Products resulted in the two sub- criteria lead time and net price were defined as the most important ones when negotiating and evaluating suppliers. A combination of these sub-criteria was therefore used to choose suitable articles. Once the cases had been defined, the purchase-, transport- and inventory costs could be calculated for both their current situation and alternative setup scenarios. Theories from relevant researches were used to strengthen and criticised the cases’ results. Each case's result provided information regarding how the purchase-, transport- and inventory costs were affected by specific setups. By comparing the alternative scenarios with the setup currently used, the alternatives ́ profitability could be determined. The cases showed that by only studying one of the three cost posts, only a limited insight was gained. Even if the purchase cost was to increase for an alternative setup, it could still be profitable to implement due to decreased transport- and inventory costs. Furthermore, an alternative setup that showed significant potential to reduce inventory costs was proven to not be profitable because of its effect on the net price. Neglecting to take transport- and inventory costs into account when a potential supplier is evaluated can make a deal look more profitable than it is. The final recommendation is that purchase-, transport- and inventory costs all have to be taken into consideration in order to determine which setups that are economically preferable. If the strategic purchasers at Control Products includes these when they negotiate with suppliers, more profitable deals can be obtained. / <p>Examensarbetet är en förvrängd version då känslig information om ABB inte ska läcka ut.</p>

A seleção de fornecedores é um problema complexo e que vem ganhando importância estratégica nas organizações, principalmente devido à inclusão de diversos atributos que podem ser especificados de acordo com as necessidades da situação, pois o fator custo não é mais o único responsável pela decisão. A relevância da sustentabilidade, em termos econômicos, ambientais e sociais, traz ao tema ainda mais atributos que devem ser mapeados como parte da decisão. Neste trabalho é proposta uma abordagem baseada em otimização combinatória (programação linear inteira) aliada à análise de valor multicriterial que estabelece prioridades e compensações entre os atributos definidos, para seleção de fornecedores de um conjunto de embalagens de cosméticos para uma nova linha de produtos. A solução encontrada é comparada aos métodos de otimização tradicionais (monocriteriais) e à otimização multicriterial sem leilão combinatório. Também são realizadas análises de sensibilidade com o modelo, permitindo que sejam feitas validações de forma a justificar a decisão. / Supplier selection is a complex issue that has gained strategic importance in organizations, mainly due to the consideration of several criteria that can be specified according to the situation, since cost is no longer solely responsible for the decision. The sustainability relevance, in economical, environmental and social terms, brings to the theme even more criteria that should be included as part of the decision. This work proposes an approach based on combinatorial optimization (integer linear programming) combined with multi-criteria value analysis that establishes priorities and trade-offs among the defined criteria, to the supplier selection of a cosmetics packaging set for a new product line. The obtained solution is compared to traditional optimization methods (mono-criteria) and to the multi-criteria optimization without combinatorial auction. Sensitivity analyses are also performed with the model, allowing assessments to be made in order to justify the decision.