Designing a Supplier Performance Measurement System: A Case Study at Outnorth
(2024) MTTM05 20241Engineering Logistics
Production Management
- Abstract
- Outnorth, a large Swedish Outdoor e-commerce retailer, is experiencing issues with lacking
supplier performance, such as late deliveries and insufficient information. Concurrently they
strive to strengthen their relationships with suppliers. In this study, a supplier performance
measurement system, SPMS, is created to help Outnorth deal with supplier issues and
facilitate communication and relationship building with suppliers.
The purpose of this study is to design a supplier performance measurement system for
Outnorth.
• RQ1: What factors contribute to a successful implementation of a supplier performance
measurement system?
• RQ2: What supplier aspects are critical for Outnorth?
• RQ3: How can a supplier performance... (More) - Outnorth, a large Swedish Outdoor e-commerce retailer, is experiencing issues with lacking
supplier performance, such as late deliveries and insufficient information. Concurrently they
strive to strengthen their relationships with suppliers. In this study, a supplier performance
measurement system, SPMS, is created to help Outnorth deal with supplier issues and
facilitate communication and relationship building with suppliers.
The purpose of this study is to design a supplier performance measurement system for
Outnorth.
• RQ1: What factors contribute to a successful implementation of a supplier performance
measurement system?
• RQ2: What supplier aspects are critical for Outnorth?
• RQ3: How can a supplier performance measurement system be designed for Outnorth?
The study used a qualitative case study approach. A literature review was conducted which
resulted in a theoretical framework guiding the study to design a performance measurement
system. The data collection primarily consisted of interviews, which explored the areas in the
theoretical framework. Afterward, the data could be analyzed in order to make conclusions
and recommendations regarding SPMS design.
The study identified two critical success factors: strategically aligned metrics as well as
communication and relationship building. Aligning metrics with strategy is crucial for a
SPMS, making metrics evaluate strategy implementation. To facilitate strategic alignment,
relevant stakeholders should also be involved in SPMS design. Communication and
relationship building can be used in conjunction with a SPMS to promote its success.
Furthermore, based on these critical success factors and the entirety of the literature review, a
theoretical framework was created for design of a SPMS. The first step was to understand the
environment: identifying strategic objectives and internal stakeholder priorities and
examining supplier communication. The second step were designing the SPMS based on the
environment. This included first defining the intended roles of the SPMS and defining critical
supplier aspects. For Outnorth these critical supplier aspects were: correct information; strong
relationship; delivery reliability; and strong brand and products. Lastly, as a part of the
design, the metrics were created based on the roles and critical supplier aspects. 8 metrics
were created and defined namely: on-time delivery; delivery quantity accuracy; EDI
integration; missing delivery documentation; insufficient product information; supplier
communication; supplier commitment; and customer product claims. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9168209
- author
- Wijk, Arvid LU
- supervisor
-
- Dag Näslund LU
- organization
- course
- MTTM05 20241
- year
- 2024
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Supplier Performance Measurement, Supplier Performance Measurement System, Performance Measurement System, Supplier Evaluation
- other publication id
- 6027
- language
- English
- id
- 9168209
- date added to LUP
- 2024-09-04 13:55:51
- date last changed
- 2024-09-04 13:55:51
@misc{9168209,
abstract = {{Outnorth, a large Swedish Outdoor e-commerce retailer, is experiencing issues with lacking
supplier performance, such as late deliveries and insufficient information. Concurrently they
strive to strengthen their relationships with suppliers. In this study, a supplier performance
measurement system, SPMS, is created to help Outnorth deal with supplier issues and
facilitate communication and relationship building with suppliers.
The purpose of this study is to design a supplier performance measurement system for
Outnorth.
• RQ1: What factors contribute to a successful implementation of a supplier performance
measurement system?
• RQ2: What supplier aspects are critical for Outnorth?
• RQ3: How can a supplier performance measurement system be designed for Outnorth?
The study used a qualitative case study approach. A literature review was conducted which
resulted in a theoretical framework guiding the study to design a performance measurement
system. The data collection primarily consisted of interviews, which explored the areas in the
theoretical framework. Afterward, the data could be analyzed in order to make conclusions
and recommendations regarding SPMS design.
The study identified two critical success factors: strategically aligned metrics as well as
communication and relationship building. Aligning metrics with strategy is crucial for a
SPMS, making metrics evaluate strategy implementation. To facilitate strategic alignment,
relevant stakeholders should also be involved in SPMS design. Communication and
relationship building can be used in conjunction with a SPMS to promote its success.
Furthermore, based on these critical success factors and the entirety of the literature review, a
theoretical framework was created for design of a SPMS. The first step was to understand the
environment: identifying strategic objectives and internal stakeholder priorities and
examining supplier communication. The second step were designing the SPMS based on the
environment. This included first defining the intended roles of the SPMS and defining critical
supplier aspects. For Outnorth these critical supplier aspects were: correct information; strong
relationship; delivery reliability; and strong brand and products. Lastly, as a part of the
design, the metrics were created based on the roles and critical supplier aspects. 8 metrics
were created and defined namely: on-time delivery; delivery quantity accuracy; EDI
integration; missing delivery documentation; insufficient product information; supplier
communication; supplier commitment; and customer product claims.}},
author = {{Wijk, Arvid}},
language = {{eng}},
note = {{Student Paper}},
title = {{Designing a Supplier Performance Measurement System: A Case Study at Outnorth}},
year = {{2024}},
}