Department of Industrial Management and Logistics Label of Engineering Logistics
Planning for Dealer Base Lowering
- understanding Supplier Foundation Reduction's part in purchasing A case study in Alfa Laval AB
Fabian Karlsson Sebastian Eriksson-RitzГ©n
Ala Pazirandeh Markus Ekendahl
This kind of thesis accomplished our Expert of Research in Mechanised Engineering with specialization in Logistics and Supply Chain Managing at the Faculty of Architectural, Lund College or university. We started this research by expressing a want to write our master thesis within getting at Alfa Laval. We would like to say thanks to Alfa Laval for rendering us with an office at their site in Lund and all the data needed to finish this analyze. We would also like to especially thank all of the global consumers and people in Operations Creation who have been incredibly supportive and a great firm, both socially and expertly. Finally you want to address the supervisors intended for the thesis; Ala Pazirandeh and Markus Ekendahl. Ala has constantly provided all of us with superb feedback about our survey writing and has really helped us to further improve the report structure of the study. Markus has supplied us along with his personal network within Alfa Laval and has together with his knowledge and experience within purchasing recently been a great ideas for each of our future careers.
Lund, Feb . 2011
Subject: Planning for Supplier Base Reduction - understanding Supplier Bottom Reduction's role in purchasing. A case examine at Alfa Laval ABDOMINAL Fabian Karlsson and Sebastian Eriksson-RitzГ©n Ala Pazirandeh, Division of Industrial Administration and Strategies, Lund University Markus Ekendahl, Alfa Laval AB Background: Today specific businesses will not compete while isolated entities, but rather inside supply chains. Lambert (2008) emphasizes the importance of romance management in supply chain management and this is supported by Chen and Paulraj (2004) who also argue that buyer-supplier relationships possess a central part in supply cycle management. Chen and Paulraj (2004) state that in the past businesses commonly developed with a many suppliers and that recently there have been a significant switch from the traditional adversarial buyer-seller relationships towards the use of a limited number of certified suppliers with deeper interactions. The move when shifting from a large number of suppliers to fewer is definitely titled dealer base lowering. Supplier foundation reduction can be one of five components in Chen and PaulrajвЂџs (2004) buyer-supplier strategy. They consider that distributor base decrease is a necessary element of modern-day supply cycle management. This thesis worries how distributor base lowering connects to other areas within the purchasing field and what issues businesses needs to addresses when planning for a supplier foundation reduction effort. The purpose of this thesis should be to increase the comprehension of a successful provider base reduction initiative and the activities that should be conducted prior to such a supplier foundation reduction initiative. How to effectively plan a supplier basic reduction initiative and what aspects to consider preparing such an motivation? In order to map the areas of buying that connect with supplier base reduction and understand how these areas have an effect on and are impacted by supplier base reduction a process approach has been used. It turned out combined with an abductive procedure where purchasing literature have been studied and a conceptual model have been developed. This conceptual style has been accustomed to analyze the conditions for dealer base decrease at the case company, Alfa Laval. The conceptual version concludes that it can be important to realise why a company should certainly initiate dealer base reduction and that there are activities that should be carried out prior to reducing the supplier base. The degree of getting centralization affects how challenging...