siew kuan, euroma presentation 'exploring the implementation of centralised sourcing and...
DESCRIPTION
Online MSc in Operations and Supply Chain Management student Siew Kuan's presentation for the EUROMA conference Dublin (http://www.euroma2013.org/). About Siew Kuan - Originally from Malaysia, Siew Kuan Koay is a Global Lead Buyer for Copper at Von Roll Management AG, a Swiss industrial company that focuses on products and systems for power generation, transmission and distribution. Siew has over 15 years of working experience in several supply management roles. She is an online student at the University of Liverpool, studying for her MSc in Operations and Supply Chain Management. Her research interests include strategic procurement and global sourcing, project management, and work culture and behaviour. Would you like to learn more about our online programmes? Click here - http://shout.lt/gFkBTRANSCRIPT
Exploring The Implementation Of CentralisedSourcing And Procurement Process
A Case Study On A Multinational Wire Manufacturer
Siew Kuan Koay, Dr Maria Argyropoulou, Dr Peter Wilkins20th EurOMA Conference 2013 Dublin, Ireland
The Agenda
• The Purpose
• The Research
• Key Concepts and Definitions
• Literature Gap and the Research Motivation
• Leading Research Questions
• Research Methodology and Data Collection
• Data Analysis and Results
• Limitations and Future Research Directions
The Purpose
• To explore whether the implementation of the centralised sourcing and procurement process can improve organisational performance.
Essential Essential factorsfactors
Potential Potential BarriersBarriers
BenefitsBenefits
The Research
Key concepts and definitions (1)
• Centralised approach of sourcing and procurement aims at:
- Harmonising the needs of a company and its subsidiaries to obtain stronger buying power in the supply market (Trent, 2004).
- Coordinating the sourcing and procurement decisions (Faes, Matthyssens and Vandenbempt, 2000).
Key concepts and definitions (2)
• The main reasons to centralise the procurement function are (Rudzki and Trent, 2011; Dumond, 1996):
- Concentration of the purchasing power to a single department- Stronger negotiating position - Improved ability to work with larger suppliers - Better control of inventory - Group sourcing and procurement strategy
Literature gap and the research motivation
• Most studies on sourcing and procurement process are focused mainly on the formation of the process and not on the essential steps prior to forming the process (Faes, Matthyssens & Vandenbempt,
2000).
• This study explores the critical success factors for strategic sourcing and contributes to existing knowledge on the importance of a centralised sourcing and procurement function in a company.
Leading research questions
• What are the steps to form a centralised sourcing and procurement process?
• What are the barriers to the implementation of a centralised sourcing and procurement process?
• What are the benefits of a centralised sourcing and procurement process on organisational performance?
Research methodology and data collection
• Case Study Approach:
- Eight interviews were conducted with:
Personnel involved in sourcing and procurement activities-twenty open ended questions were asked.
- Pilot interview was employed to test and assess the relevance and clarity of the twenty open ended questions.
- Supplementary documentary evidence was collected.
Data analysis
• Thematic analysis was used to analyse the interview transcripts.
• The analysis followed the criteria set out for a good thematic analysis by Braun and Clarke (2006).
Themes that emerged from interview data (1)
• For RQ1_the steps/actions - Commitment from top management
- Categorisation of purchases
- Execution of a spend analysis
- Separation of the strategic from the operational roles and activities
- Redesign of organisational structure
- Standardisation of processes, procedures and purchase specifications
Themes that emerged from interview data (2)
• For RQ2_the barriers
- Low development level of the procurement organisation
- Nonexistence of sourcing strategy
- Inadequate procurement process - procurement did not consider a strategic process
- Lack of knowledge and skills
- Poor procurement information system
Themes that emerged from interview data (3)
• For RQ3_the benefits
- Improvement of the procurement function
- Stronger buying power
- Cost savings
Limitations
• Lack of ability to generalise the findings
• Number of interviews
• Time constraints
• Author’s rather limited interviewer experience
Future research directions
• The findings can be used by future researchers to:
- explore further the centralised procurement by employing a constructivist approach.
- develop the themes identified from the research in others studies/industries in the field of strategic supply chain management.
Thank you for your attention!
Any questions?
Siew Kuan [email protected]
university-liverpool-online.com