Improvement of coordination of component purchasing between Capital Sales and Spare Parts Sales in Alfa Laval

Abstract

Background
Manufacturing companies often have to balance the use of components for manufacturing and for
aftermarket sales. This puts pressure on these companies to efficiently organize and prioritize their needs
and supply of these. The Gasketed Plate Heat Exchanger Business Unit within Alfa Laval is an example
of a company experiencing this type of need. The business unit has two separate parts, Capital Sales, for
production of complete new units, and Spare Parts Sales, for providing spare parts to the aftermarket.
Both CS and SPS purchase material for their own needs.
Problem formulation
One example of a type of component purchased by both CS and SPS is sealing gaskets. The supply chain
for these gaskets is limited and CS and SPS therefore must share and compete for the available capacity.
The current organization and purchasing structure causes conflicts and supply issues for the business unit.
This has led to the research questions of this study being centered around identifying the issues with the
current purchasing organization and finding potential improvements that could solve these issues.
Theoretical framework and methodology
The theory used to answer the research questions can be divided into three main areas, purchasing
organization, purchasing process and S&OP, each containing different subareas. Additional theoretical
topics, such as distances, are also included to give a better understanding of the context surrounding the
problem. The research method used in the study is multiple case study where other cases are included
based on similar characteristics of the companies as in the problem statement. Information is collected
through interviews and shared documents. Each case is analyzed on its own, and similarities and
differences are found through comparisons in a cross-case analysis.
Results and conclusions
The current purchasing organization within the GPHE BU is already working well in many aspects. This
study concludes that there are potential improvements that can be made through changing the operational
purchasing tasks towards becoming more centralized across the whole organization. The forecasting
process can also be improved through more coordination and commitment from each department. All
these changes have to be implemented through voluntary and informative efforts. The study also provides
IV
generalizable conclusions about how to organize purchasing of components for multiple uses in industrial
manufacturing companies.

Popular Abstract

Manufacturing companies need to have enough
resources to both produce their products and
to provide spare parts for customers in need of
repairs. Prioritizing between these needs
requires a capable purchasing department.
Every department in a big company has their
specific tasks. Most departments think that their
purpose is the most important. Some departments
have no interest in or understanding of other
departments in the company.
To make all these departments work together, they
must be efficiently organized. This can allow
them to work towards a common goal. The
business unit in Alfa Laval, which produces heat
exchangers, is one example of an organization that
suffers from disconnection between internal
functions. To find solutions to these problems, the
study Improvement of coordination of component
purchasing between Capital Sales and Spare
Parts Sales in Alfa Laval (by Joakim Dworak,
2025) has been conducted.
The study includes input from both previous
literature, on topics such as purchasing
organizations and forecasting, and six other
successful companies outside the focus
department at Alfa Laval. Purchasing
professionals from companies in different
industries were interviewed. This gives different
views on similar issues and objectives. All
companies are similar in that they sell both
complete products and spare parts for these
products.
Some guidelines for Alfa Laval are presented that
also are applicable to other companies with
similar needs. One example is that centralized
purchasing seems more efficient than
decentralized. This means that decisions are made
by a limited, central, purchasing department, in
contrast to decentralized decisions being spread
across a whole organization. A central
organization can limit the need for complicated
communication. A strong, unified purchasing
department also communicates clearer messages
towards suppliers. Where a decentralized
organization appears as a noisy crowd, a
centralized one can talk with a unified voice to the
suppliers.
The companies that were interviewed for the
study all work in a global setting. This is the case
for many companies today, active in different
industries. Collaboration with suppliers can then
be made more difficult due to discrepancies in
culture, language and geography. It is therefore
recommended to have a presence in the foreign
parts of the world, compared to the home market
of the company, if suppliers are located there.
This can allow for easier communication with
suppliers and overall better access to the materials
needed.
When making changes to organizations there can
be push-back from affected employees and
departments. Compliance is often higher if there is
a choice for when and how to join the new
structure. Previous studies show that voluntary
inclusion leads to better collaborations. The new
changes must be valuable and easy enough to
implement for each department to see the purpose
and want to take part. This is valid for other
changes than just in purchasing organizations.
An important part of efficient purchasing work is
good relationships with suppliers. For long-term
efficiency it is also vital to make predictions for
future needs and demands. Of the companies in
the study, the ones who inform their suppliers
about their forecasted needs achieve higher
efficiency. This helps the suppliers plan and
deliver according to the requests from the
companies. It is also necessary to commit to the
shared numbers and make promises to follow the
predictions when placing real purchasing orders.
This builds mutual trust between suppliers and the
companies. Without commitments the forecasts
can be compared to agreements written in
disappearing ink, where no one knows what to
believe in.

• author: Dworak, Joakim
• supervisor: Andreas Norrman
• organization: Production Management; Engineering Logistics
• course: MTTM05 20242
• year: 2026
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• report number: 6053
• language: English
• id: 9218702
• date added to LUP: 2026-01-14 15:21:33
• date last changed: 2026-01-14 15:21:33