Integrating Capacity Analysis and Should-Cost Modeling to Enhance Procurement Processes - An in-depth understanding of the supply and cost structures of aluminum foil in North America
(2024) MTTM05 20241Production Management
Engineering Logistics
- Abstract
- In the rapidly evolving electric vehicle (EV) battery industry, strategic supplier selection is crucial for securing a reliable and cost-effective supply chain. This thesis examines the implementation of a capacity analysis and a should-cost model to optimize supplier selection and contracting for Northvolt, a leading battery manufacturer, as it expands into North America. With Northvolt's new gigafactory in Montreal poised to commence production in 2026, establishing a robust network of local suppliers is imperative.
The thesis focuses on answering one research question: How could a capacity analysis and shouldcost model contribute to the supplier selection, negotiation, and contracting processes of Northvolt? To answer this question,... (More) - In the rapidly evolving electric vehicle (EV) battery industry, strategic supplier selection is crucial for securing a reliable and cost-effective supply chain. This thesis examines the implementation of a capacity analysis and a should-cost model to optimize supplier selection and contracting for Northvolt, a leading battery manufacturer, as it expands into North America. With Northvolt's new gigafactory in Montreal poised to commence production in 2026, establishing a robust network of local suppliers is imperative.
The thesis focuses on answering one research question: How could a capacity analysis and shouldcost model contribute to the supplier selection, negotiation, and contracting processes of Northvolt? To answer this question, two research objectives must be achieved. Firstly, a capacity analysis was made with the purpose of mapping out the existing and future production capacity of battery cathode foil, along with the projected demand, corresponding carbon offsets, and environmental ambitions for the future. Secondly, a should-cost model was made to provide a
detailed breakdown of production costs, offering insights into cost drivers, and enabling more informed negotiation strategies with suppliers. To assist in answering the research question, qualitative data was gathered through structured interviews with Category Managers at Northvolt.
The thesis adopts an explanatory mixed method approach with focus on archival research and interviews to gather quantitative and qualitative data. Relevant actions have been taken to ensure reliable and valid results and analysis. The findings suggest that integrating these analytical tools significantly aids in making informed, strategic decisions in supplier management, setting a precedent for future procurement practices in the rapidly evolving EV battery sector.
Regarding the contribution, the thesis was conducted in complete collaboration between the two authors. Both authors have been fully involved in every process and section integrated into the thesis. (Less) - Popular Abstract
- The world is experiencing a shift, where the internal combustion engines are rapidly being replaced by electric vehicles. However, to produce the batteries for these vehicles, the need for aluminum cathode foil is apparent. More and more EV-battery
manufacturers are emerging, but who is going to provide the cathode foil?
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9162465
- author
- Hasselberg, Gustaf LU and Lugner, Jakob LU
- supervisor
-
- Eva Berg LU
- organization
- course
- MTTM05 20241
- year
- 2024
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Procurement, Strategic cost management, Category management, Should-cost model, Capacity analysis, Aluminum foil production, EV battery manufacturing
- other publication id
- 6018
- language
- English
- id
- 9162465
- date added to LUP
- 2024-09-04 13:51:42
- date last changed
- 2024-09-04 13:51:42
@misc{9162465, abstract = {{In the rapidly evolving electric vehicle (EV) battery industry, strategic supplier selection is crucial for securing a reliable and cost-effective supply chain. This thesis examines the implementation of a capacity analysis and a should-cost model to optimize supplier selection and contracting for Northvolt, a leading battery manufacturer, as it expands into North America. With Northvolt's new gigafactory in Montreal poised to commence production in 2026, establishing a robust network of local suppliers is imperative. The thesis focuses on answering one research question: How could a capacity analysis and shouldcost model contribute to the supplier selection, negotiation, and contracting processes of Northvolt? To answer this question, two research objectives must be achieved. Firstly, a capacity analysis was made with the purpose of mapping out the existing and future production capacity of battery cathode foil, along with the projected demand, corresponding carbon offsets, and environmental ambitions for the future. Secondly, a should-cost model was made to provide a detailed breakdown of production costs, offering insights into cost drivers, and enabling more informed negotiation strategies with suppliers. To assist in answering the research question, qualitative data was gathered through structured interviews with Category Managers at Northvolt. The thesis adopts an explanatory mixed method approach with focus on archival research and interviews to gather quantitative and qualitative data. Relevant actions have been taken to ensure reliable and valid results and analysis. The findings suggest that integrating these analytical tools significantly aids in making informed, strategic decisions in supplier management, setting a precedent for future procurement practices in the rapidly evolving EV battery sector. Regarding the contribution, the thesis was conducted in complete collaboration between the two authors. Both authors have been fully involved in every process and section integrated into the thesis.}}, author = {{Hasselberg, Gustaf and Lugner, Jakob}}, language = {{eng}}, note = {{Student Paper}}, title = {{Integrating Capacity Analysis and Should-Cost Modeling to Enhance Procurement Processes - An in-depth understanding of the supply and cost structures of aluminum foil in North America}}, year = {{2024}}, }