Identifying Proper SCRM Strategies for a heavy equipment manufacturer : A contingency study for a Finnish heavy equipment manufacturer
Koiranen, Verneri (2024-04-03)
Identifying Proper SCRM Strategies for a heavy equipment manufacturer : A contingency study for a Finnish heavy equipment manufacturer
(03.04.2024)
Julkaisu on tekijänoikeussäännösten alainen. Teosta voi lukea ja tulostaa henkilökohtaista käyttöä varten. Käyttö kaupallisiin tarkoituksiin on kielletty.
suljettu
Julkaisun pysyvä osoite on:
https://urn.fi/URN:NBN:fi-fe2024042923438
https://urn.fi/URN:NBN:fi-fe2024042923438
Tiivistelmä
The purpose of this thesis is to map the business contingencies heavy equipment manufacturer (Client) is facing due to its operating environment and assess whether the Client’s supply chain risk management (SCRM) strategies are aligned with the contingencies it faces.
This thesis uses contingency theory as it’s theoretical framework for concluding the assessment. This thesis includes a literature review on existing literature around supply chain risk management strategies and the antecedents resulting in the choice. The thesis includes empirical data gathered from key people within the client by interviewing them and breaks down the results using a thematic analysis.
This research found that The Client's five business divisions operate in an environment with low demand uncertainty but significant uncertainty in demand forecasting. Products across divisions exhibit qualities of both innovative and functional products, with no clear distinction for most of the divisions. Supply uncertainty is low, with minor variation between divisions. Overall, The Client's supply chain risk management strategies align well with their operating environments, except for divisions I, II, and III, where the businesses must use speculation strategy by pre-purchasing components in an environment of high forecasting uncertainty. The cause of the misalignment was identified as a market condition that forces The Client to commit to shorter lead times to win business deals than what The Client can get from their suppliers.
This thesis provides an addition into existing SCRM literature with real life empirical data and addresses the gap between theory and practice. The thesis also provides valuable information to the supply chain management team of The Client.
The scope of the thesis was to investigate the SCRM at a high level for all of The Client’s 5 business divisions. The scope was selected due to the need of The Client, who had several disruptions in its supply chains after the COVID-19 pandemic.
The key findings were the misalignment in usage of the speculation strategy that was driven by market conditions in 3 out of 5 divisions, while overall the company had well aligned SCRM strategies.
This thesis uses contingency theory as it’s theoretical framework for concluding the assessment. This thesis includes a literature review on existing literature around supply chain risk management strategies and the antecedents resulting in the choice. The thesis includes empirical data gathered from key people within the client by interviewing them and breaks down the results using a thematic analysis.
This research found that The Client's five business divisions operate in an environment with low demand uncertainty but significant uncertainty in demand forecasting. Products across divisions exhibit qualities of both innovative and functional products, with no clear distinction for most of the divisions. Supply uncertainty is low, with minor variation between divisions. Overall, The Client's supply chain risk management strategies align well with their operating environments, except for divisions I, II, and III, where the businesses must use speculation strategy by pre-purchasing components in an environment of high forecasting uncertainty. The cause of the misalignment was identified as a market condition that forces The Client to commit to shorter lead times to win business deals than what The Client can get from their suppliers.
This thesis provides an addition into existing SCRM literature with real life empirical data and addresses the gap between theory and practice. The thesis also provides valuable information to the supply chain management team of The Client.
The scope of the thesis was to investigate the SCRM at a high level for all of The Client’s 5 business divisions. The scope was selected due to the need of The Client, who had several disruptions in its supply chains after the COVID-19 pandemic.
The key findings were the misalignment in usage of the speculation strategy that was driven by market conditions in 3 out of 5 divisions, while overall the company had well aligned SCRM strategies.