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Resource Efficient Management of Raw Material Price Fluctuations: A case study on proactive and reactive business processesin the Purchasing Department of a manufacturing company
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial Management.
2015 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

An increase in global competition force companies and supply chains to discover newpotentials for reducing costs. One potential source for such cost reduction is processes in the Purchasing Department as the department is considered to be under-researched.This case study investigates what affects the resource efficiency of two processes related to managing raw material price fluctuations at Scania CV AB’s Purchasing Department. Based on the findings from this, recommendations for how the resource efficiency can be improved are also presented.The first investigated process is a proactive process where future raw material prices are forecasted. The other process, which is a reactive process, is the follow-up on the actual raw material prices that Scania pays its suppliers.Factors which affect the resource efficiency of the processes are concluded to be: transparency, incentives, performance metrics, wastes of overprocessing and unused employee creativity, standardized/harmonized guidelines and working methods, organizational alignment and automation. It is recommended that the forecasting process is completely reshaped and improvements for the follow-up includes designing a standardized format for how the follow-up is presentation.

Place, publisher, year, edition, pages
2015. , 84 p.
Keyword [en]
Purchasing, resource efficient processes, raw material price fluctuations, Lean Management, Performance Management
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-190930OAI: diva2:953772
Available from: 2016-08-19 Created: 2016-08-18 Last updated: 2016-08-19Bibliographically approved

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