Managing supply risks in uncertain market conditions – case studies of companies within the Swedish manufacturing industry
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
The application of purchasing theories such as global sourcing, single sourcing or JIT have caused an increased complexity and have given rise to supply risk for organisations within the manufacturing industry. The uncertain market conditions caused by global financial crisis in 2008-2009 led to an unpredictable demand among costumers and weaker financial stability among supplier organisations which substantial influence on manufacturing industry. The new market conditions had given rise to additional factors that had to be taken into consideration when securing supply i.e. given rise to new aspects of supply risks. These new market oriented risk factors required the manufacturing firms to adjust and develop their supply risk management to combat the heightened risk potential. Due to the fact that research in the area of supply risk management was new explained why there was a certain theoretical gap concerning how manufacturing companies have developed their tool and practises. The purpose of the master thesis was to study how have different corporations in the manufacturing sector had managed and adapted their supply risk activities in response to the recent changes in market conditions caused by the fluctuating economy.Theories used to support the study were concepts regarding portfolio management, particularly the Kraljic matrix. Secondly concepts such as supply risk and general risk management theories were used. The theories led to the creation of a research model which was used for an empirical study.The method used to fulfil the purpose were case studies of several companies which were done on a qualitative basis. In order to collect essential empirical data, four manufacturing firms’ representing different markets segments were interviewed.The result of the study showed that manufacturing firms had responded to the impact that the escalated supply risks had created. The overall improvement in attentiveness to the issue had resulted in the establishment of new, and the development of current tools and practises. A specific attribute that had seen changes was the improved buyer-supplier relationship that had been beneficial to diminish the supply risk. Furthermore, the fluctuating prices on raw material and the financial situation of key suppliers had grown in significance and were assessed moreIIcomprehensively. In the end, it would prove more conducive if the measures applied by manufacturing companies were codified and were implemented in a systematically constructed process.
Place, publisher, year, edition, pages
2013. , 65 p.
Examensarbete INDEK, 2013:12
Supply risk management, Supply chain, Risk management, Purchasing, Manufacturing industry
Engineering and Technology Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-122490OAI: oai:DiVA.org:kth-122490DiVA: diva2:622683
Subject / course
Industrial Economics and Management