Background: T-Emballage is an established retailer of packaging materials with a specialization in customer-unique packaging solutions. For T-Emballage, it is crucial to adapt to the increasing importance of packaging materials as an opportunity for value creation and differentiation in an industry where customer demands are increasing, which requires active cooperation with suppliers to be at the forefront. Effective supplier development improves supplier capabilities and performance, helping buyers achieve cost reductions, productivity improvements, quality improvements and optimal resource utilization. SMEs are often characterized by limited resources, which makes it especially essential for these companies to develop the right supplier in the right way. Purpose: The purpose of this study is to identify and explore activities for supplier development based on a portfolio analysis and supplier evaluation, with a focus on improving the quality, price and service of T-Emballage’s various suppliers. Furthermore, the study aims to investigate the potential cost-related effects that can be achieved when implementing the recommended activities for T-Emballage’s strategic suppliers. By achieving this, the study aims to offer insights and recommendations for effective supplier development for retail SMEs in the packaging industry. Method: The study employs a qualitative approach with quantitative elements, where the first research question is primarily qualitative and the second, quantitative. Data collection was conducted through structured, semi-structured, and unstructured interviews. Furthermore, data was gathered from two focus groups, as well as directly from T-Emballage’s business system and statistical programs. Conclusion: The study finds that T-Emballage’s nine largest suppliers, in terms of spend, require different activities for supplier development. For the strategic suppliers, whose performance in the supplier evaluation had room for improvement, direct activities are recommended, in the categories of training and support, technical development, communication and collaboration as well as evaluation and assessment. For the strategic suppliers that have performed well based on the supplier evaluation, along with the bottleneck supplier, non-critical and the leverage supplier, various indirect supplier development activities are recommended. Furthermore, it appears that the implementation of the recommended supplier development activities for T-Emballage’s strategic suppliers potentially generate both cost increases and reductions. The indirect activities offer the greatest potential for cost reductions, while several of the direct ones were considered unfeasible considering, among other things, the resources that would be required. Contribution: The study contributes to filling a research gap regarding supplier development for retail SMEs in the packaging industry. By using portfolio analysis and supplier evaluation, the study offers a unique framework to determine appropriate supplier development activities for different suppliers. In addition, the results of the study constitute a significant decision basis for T-Emballage in terms of the choice of supplier development activities. The study’s societal contribution lies in promoting an ethical supply chain practice through supplier development, fostering long-term stability, potentially benefiting the wider community through improved economic growth and responsible business conduct.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:lnu-130495 |
| Date | January 2024 |
| Creators | Fors, Mikaela, Borgström, Frida |
| Publisher | Linnéuniversitetet, Institutionen för management (MAN) |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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