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Can Scania Be Stronger Than Steel?

Lilja, Gustaf LU and Karlsson, Malin (2011) TMA820 20111
Department of Business Administration
Abstract
Research about delegating or controlling purchasing with 2nd tier suppliers does not seem to be convergent; it discusses benefits and disadvantages of both purchasing tactics in various situations. There is no single tool today that we have found, that helps manufacturing companies decide when to control and when to delegate purchasing in the supply chain.

The purpose of this thesis is twofold. First, to create a framework that can act as a decision making tool for manufacturing companies regarding the question if they should delegate or control purchasing activities with the 2nd tier suppliers. Second, to apply the framework on the part of Scania’s purchasing division that handles forged parts.

A constructive approach has been used... (More)
Research about delegating or controlling purchasing with 2nd tier suppliers does not seem to be convergent; it discusses benefits and disadvantages of both purchasing tactics in various situations. There is no single tool today that we have found, that helps manufacturing companies decide when to control and when to delegate purchasing in the supply chain.

The purpose of this thesis is twofold. First, to create a framework that can act as a decision making tool for manufacturing companies regarding the question if they should delegate or control purchasing activities with the 2nd tier suppliers. Second, to apply the framework on the part of Scania’s purchasing division that handles forged parts.

A constructive approach has been used in this thesis and a multiple case study has been conducted where five manufacturing companies were interviewed.

The decision making tool, named the 3Part CoD-tool, has been constructed for manufacturing companies to use when deciding whether to control or delegate purchasing with 2nd tier suppliers. The tool was thereafter applied on a case at Scania, resulting in a recommendation for Scania to control purchasing, by using the Buy-Sell procurement model. One additional procurement model has been produced named COI. (Less)
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author
Lilja, Gustaf LU and Karlsson, Malin
supervisor
organization
alternative title
A study of control and delegation of purchasing in a three-tier supply chain
course
TMA820 20111
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Purchasing, control, delegation, principal-agent, power relationship, purchasing leverage, steel, forgings, Scania
report number
211
ISSN
1651-0100
language
English
id
1976290
date added to LUP
2011-06-10 13:19:19
date last changed
2011-06-10 13:19:19
@misc{1976290,
  abstract     = {Research about delegating or controlling purchasing with 2nd tier suppliers does not seem to be convergent; it discusses benefits and disadvantages of both purchasing tactics in various situations. There is no single tool today that we have found, that helps manufacturing companies decide when to control and when to delegate purchasing in the supply chain.

The purpose of this thesis is twofold. First, to create a framework that can act as a decision making tool for manufacturing companies regarding the question if they should delegate or control purchasing activities with the 2nd tier suppliers. Second, to apply the framework on the part of Scania’s purchasing division that handles forged parts.

A constructive approach has been used in this thesis and a multiple case study has been conducted where five manufacturing companies were interviewed.

The decision making tool, named the 3Part CoD-tool, has been constructed for manufacturing companies to use when deciding whether to control or delegate purchasing with 2nd tier suppliers. The tool was thereafter applied on a case at Scania, resulting in a recommendation for Scania to control purchasing, by using the Buy-Sell procurement model. One additional procurement model has been produced named COI.},
  author       = {Lilja, Gustaf and Karlsson, Malin},
  issn         = {1651-0100},
  keyword      = {Purchasing,control,delegation,principal-agent,power relationship,purchasing leverage,steel,forgings,Scania},
  language     = {eng},
  note         = {Student Paper},
  title        = {Can Scania Be Stronger Than Steel?},
  year         = {2011},
}