Understanding the strategic importance of indirect procurement
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Typ
Examensarbete för masterexamen
Program
Supply chain management (MPSCM), MSc
Publicerad
2020
Författare
Kamperin, Axel
Kanmert, Jacob
Modellbyggare
Tidskriftstitel
ISSN
Volymtitel
Utgivare
Sammanfattning
Procurement has progressed in strategical importance, and plenty of resources and tools are
used to generate effective sourcing of the required material. The area has received much
attention from research, however, this research mainly focuses on the area of direct material,
products and services directly contributing to creating the finished products or service. This
leaves the area of indirect material and services as a less investigated topic, although it often
totals to 40-50% of a company’s total spend. These costs include services such as consultants,
travel and facility management and products like office equipment and utilities that are
required to carry out the company’s operations and are very similar across different type of
companies and industries.
This study, therefore, aims to investigate the management of indirect spend at the MedTech
company Dentsply IH AB in Mölndal and its two business units Wellspect Healthcare and
Dentsply Sirona Implants. Qualitative and quantitative measures were taken to provide an
outlook on the current state of spend and present processes within the subject. The results
show that the indirect procurement within DIH is immature in that departments are
uncoordinated and few standardised processes exist, a lack of quality and accessible data
complicates getting an overview and controlling the spend and a large number of suppliers
are used as a result.
The final part of the study presents an analysis of the data to show potential improvement and
synergies for and between the two business units. Suggestions on how to improve the
procurement of indirect material and services within DIH and suggestions to capture
identified synergies and a proposal on how to prioritise amongst projects is presented. The
study’s findings were also found to be more generally applicable than first was thought, much
due to the nature of indirect categories that could be confirmed from the case studied.
Beskrivning
Ämne/nyckelord
procurement, , purchasing , indirect materials and services , IDM , spend analysis