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Digitalisation of sourcing processes – A case study at Axis Communications AB

Nilsson, Elaine LU and Westberg, Josefine LU (2021) MTTM05 20211
Engineering Logistics
Abstract
Title: Digitalisation of sourcing processes – A case study at Axis Communications

Authors: Elaine Nilsson & Josefine Westberg

Supervisor: Karin Forsberg, Commodity Manager, Axis Communications AB
Daisy Wang, Project Purchaser, Axis Communications AB
Louise Bildsten, Department of Industrial Management & Logistics, Faculty of Engineering,
Lund University

Examiner: Jan Olhager, Department of Industrial Management & Logistics, Faculty of
Engineering, Lund University

Background: Axis Communications AB is a global network surveillance company based in
Lund, Sweden. Axis assemble and store some components and products in their own facilities,
however manufacturing is handled by contract manufacturers. It is Axis sourcing... (More)
Title: Digitalisation of sourcing processes – A case study at Axis Communications

Authors: Elaine Nilsson & Josefine Westberg

Supervisor: Karin Forsberg, Commodity Manager, Axis Communications AB
Daisy Wang, Project Purchaser, Axis Communications AB
Louise Bildsten, Department of Industrial Management & Logistics, Faculty of Engineering,
Lund University

Examiner: Jan Olhager, Department of Industrial Management & Logistics, Faculty of
Engineering, Lund University

Background: Axis Communications AB is a global network surveillance company based in
Lund, Sweden. Axis assemble and store some components and products in their own facilities,
however manufacturing is handled by contract manufacturers. It is Axis sourcing department
that are responsible for establishing and maintaining relationships with these contract
manufacturers, as well as suppliers. The sourcing department is currently working towards
world class commodity management, which is a strategic approach to maximise the supplier's
contribution and drive development of the company. One step towards reaching world class
commodity management is to increase efficiency. This can be accomplished by integrating
digital technologies such as Big Data analytics and cloud storage within processes.
Digitalisation can improve procurement results through reduced costs and increased efficiency and transparency.

Problem formulation: In order to maintain supplier relationships and optimize the supplier
database many processes and tasks are performed. Some of these activities include non-value
adding and time-consuming work. These activities will be identified, and possible digitalisation
technologies investigated, with the aim of increasing efficiency and effectiveness. The thesis
is finalised with an investigation of implementation possibilities, including how easy the
technologies will be to implement and their impact.

Purpose: The purpose of this study is to investigate the current sourcing processes at Axis
Communications AB in order to identify digitalisation opportunities, digitalisation
technologies and their impact and implementation effort.

Methodology: Initially a combination of descriptive and exploratory research purpose was
used to identify problems, thereafter the study became problem solving in order to find a
solution for these problems. The approach throughout the thesis was primarily qualitative,
however quantitative data was used to strengthen some findings. Firstly, a literature review on
sourcing, digitalisation and process change was conducted. A single case study was then
performed. Interviews were held with employees at Axis in order to get an understanding of
the current sourcing processes. A small-scale survey was performed to ensure the validity of
the interviews and to analyse the identified processes. Data on systems and technologies were
gathered through system providers and documents. The empirical data was then analysed with
models and frameworks from the literature review.

Conclusion: The result of the thesis lay a foundation for future digitalisation within the
company. Digitalisation technologies and systems were found for several sourcing processes,
with the aim to increase efficiency. Each process and the suitable technology were divided into
projects, which were analysed based on impact and ease of implementation. Based on this a
course of action for further investigation was recommended. Digitalising the identified
processes will eliminate the non-value adding work currently spent on them and facilitate
strategic decision making. (Less)
Please use this url to cite or link to this publication:
author
Nilsson, Elaine LU and Westberg, Josefine LU
supervisor
organization
course
MTTM05 20211
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Sourcing, digitisation, digitalisation, digital sourcing, sourcing technologies, Axis Communications AB
report number
5954
language
English
id
9061494
date added to LUP
2021-07-26 10:51:32
date last changed
2021-07-26 10:51:32
@misc{9061494,
  abstract     = {{Title: Digitalisation of sourcing processes – A case study at Axis Communications

Authors: Elaine Nilsson & Josefine Westberg

Supervisor: Karin Forsberg, Commodity Manager, Axis Communications AB
Daisy Wang, Project Purchaser, Axis Communications AB
Louise Bildsten, Department of Industrial Management & Logistics, Faculty of Engineering, 
Lund University

Examiner: Jan Olhager, Department of Industrial Management & Logistics, Faculty of 
Engineering, Lund University

Background: Axis Communications AB is a global network surveillance company based in 
Lund, Sweden. Axis assemble and store some components and products in their own facilities, 
however manufacturing is handled by contract manufacturers. It is Axis sourcing department 
that are responsible for establishing and maintaining relationships with these contract 
manufacturers, as well as suppliers. The sourcing department is currently working towards 
world class commodity management, which is a strategic approach to maximise the supplier's 
contribution and drive development of the company. One step towards reaching world class 
commodity management is to increase efficiency. This can be accomplished by integrating 
digital technologies such as Big Data analytics and cloud storage within processes.
Digitalisation can improve procurement results through reduced costs and increased efficiency and transparency. 

Problem formulation: In order to maintain supplier relationships and optimize the supplier 
database many processes and tasks are performed. Some of these activities include non-value 
adding and time-consuming work. These activities will be identified, and possible digitalisation 
technologies investigated, with the aim of increasing efficiency and effectiveness. The thesis 
is finalised with an investigation of implementation possibilities, including how easy the 
technologies will be to implement and their impact. 

Purpose: The purpose of this study is to investigate the current sourcing processes at Axis 
Communications AB in order to identify digitalisation opportunities, digitalisation 
technologies and their impact and implementation effort.

Methodology: Initially a combination of descriptive and exploratory research purpose was 
used to identify problems, thereafter the study became problem solving in order to find a 
solution for these problems. The approach throughout the thesis was primarily qualitative, 
however quantitative data was used to strengthen some findings. Firstly, a literature review on 
sourcing, digitalisation and process change was conducted. A single case study was then 
performed. Interviews were held with employees at Axis in order to get an understanding of 
the current sourcing processes. A small-scale survey was performed to ensure the validity of 
the interviews and to analyse the identified processes. Data on systems and technologies were 
gathered through system providers and documents. The empirical data was then analysed with
models and frameworks from the literature review. 

Conclusion: The result of the thesis lay a foundation for future digitalisation within the 
company. Digitalisation technologies and systems were found for several sourcing processes,
with the aim to increase efficiency. Each process and the suitable technology were divided into 
projects, which were analysed based on impact and ease of implementation. Based on this a 
course of action for further investigation was recommended. Digitalising the identified 
processes will eliminate the non-value adding work currently spent on them and facilitate 
strategic decision making.}},
  author       = {{Nilsson, Elaine and Westberg, Josefine}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Digitalisation of sourcing processes – A case study at Axis Communications AB}},
  year         = {{2021}},
}