Risk Management in Sustainable Supply Chain

Growing awareness in corporate responsibility and issues related to sustainability is seen to increase innovativeness in a company as well as in its supply chain. The stakeholders’ awareness on sustainability has increased, and they demand the companies to identify sustainability risks and adapt procedures for mitigating them. The purpose of this thesis is to examine how risks are managed in sustainable supply chain. Definition of sustainability risks and risk management procedures construct the framework of the study. It is done through an empirical study conducted on 95 Finnish companies operating in the manufacturing industry. The data is acquired via an online questionnaire. The research has been conducted as a quantitative study utilizing the methods of statistical analysis, such as correlation analysis and factor analysis. The essential results of this thesis are identified risk-procedure connections, and the importance of different risks and procedures in the respondent companies.

Improving business processes in a globally dispersed make-to-order supply chain. Case study on outbound logistics in a Multinational Corporation

The purpose of this thesis is to find out how outbound logistics process can be improved by reducing unnecessary waste in a globally dispersed make-to-order (MTO) supply chain. The research problem was addressed by a multinational corporation that aims to find a solution for reducing unnecessary waste in their outbound logistics process. The focus is on customized products that are delivered via sea transportation. Theoretical framework for improving outbound logistics processes in globally dispersed MTO supply chain was created based on business process management, Porter’s value chain theory, value stream mapping and current reality tree. The empirical research was conducted by using constructive approach due to its ability to research a practical problem and to improve the existing practices. The data was collected from ten semi-structured interviews and three non-participant observations. By analysing the data and applying the theoretical framework, five types of waste were detected in the process that were seen to derive from six root causes. Practical solution was constructed to reduce the waste in the process by combining the existing literature with the ideas raising from empirical data. The results of this thesis suggest that a MNC with a globally dispersed MTO supply chain can improve its outbound logistics process by applying activities that enhance internal and external integration, collaboration and coordination, and increase predictability of the process. This research has practical relevance both for the case company as well as for other MNCs with globally dispersed MTO supply chains that aim to improve their outbound logistics processes. This research contributes to the BPM and CRA research by providing an evidence for their applicability in the new context.

Offshoring and outsourcing under demand uncertainty -a supply chain management analysis

Outsourcing and offshoring or any combinations of these have not just become a popular phenomenon, but are viewed as one of the most important management strategies due to the new possibilities from globalization. They have been seen as a possibility to save costs and improve customer service. Executing offshoring and offshore outsourcing successfully can be more complex than initially expected. Potential cost savings resulting from of offshoring and offshore outsourcing are often based on lower manufacturing costs. However, these benefits might be conflicted by a more complex supply chain with service level challenges that can respectively increase costs. Therefore analyzing the total cost effects of offshoring and outsourcing is necessary. The aim of this Master´s Thesis was to to construct a total cost model using academic literature to calculate the total costs and analyze the reasonability of offshoring and offshore outsourcing production of a case company compared to insourcing production. The research data was mainly quantitative and collected mainly from the case company past sales and production records. In addition management level interviews from the case company were conducted. The information from these interviews was used for the qualification of the necessary quantitative data and adding supportive information that could not be gathered from the quantitative data. Both data collection and analysis were guided by a theoretical frame of reference that was based on academic literature concerning offshoring and outsourcing, statistical calculation of demand and total costs. The results confirm the theories that offshoring and offshore outsourcing would reduce total costs as both offshoring and offshore outsourcing options result in lower total annual costs than insourcing mainly due to lower manufacturing costs. However, increased demand uncertainty would make the alternative of offshore outsourcing more risky and difficult to manage. Therefore when assessing the overall impact of the alternatives, offshoring is the most preferable option. As the main cost savings in offshore outsourcing came from lower manufacturing costs, more specifically labour costs, the logistics costs in this case company did not have an essential effect in total costs. The management should therefore pay attention initially to manufacturing costs and then logistics costs when choosing the best production sourcing option for the company.

Supply Chain Adaptation of Finnish Companies in Chinese Institutional Environment

Within the last few decades of operations and supply chain management, the field has seen the rise of so called best practices, methods that will help supply chains obtain their business goals and gain a competitive edge. These methods were thought to be universal. This however is not always the case, as the surrounding business environment could have a significant impact on what will be effective in gaining competitive edge. Contingency theory states that the success of a supply chain is determined by both internal capabilities, as well as external context aligning. This creates a strategic fit, which is a major determinant of success. In order for supply chains to reach this strategic fit, they must adapt. As China has seen rapid growth and over the last few decades become one of the major economies of the world, Western companies have tried to establish themselves there, only to find that the Chinese market is extremely difficult to operate in. The aim of this thesis was to investigate from contingency theory perspective, what are the institutional factors that affect supply chain management of Finnish companies operating in China, and how do Finnish companies adapt their supply chains to better fit the Chinese institutional environment. A theoretical model was created for this thesis, in which supply chains possess resources, which can be combined in a meaningful manner to create capabilities. Both resources and capabilities are affected by the surrounding institutional environment, which forces supply chains to adapt in order to find a better strategic fit. A total of six Finnish managers from three large and three small companies operating in China were interviewed. The results indicated that the Chinese business environment is significantly different, than that of Finland or Western countries in general. Three institutional factors were identified: Confucian though, fast-paced business environment, and managing labor force. These three institutional factors made the relationship and delivery capabilities particularly important, as well as human resources, reputation, physical resources and technological resources. In conclusion, it was discovered that the Chinese institutional environment is heavily affected by Confucian thought, as well as the rapid market growth. These are the two most important institutional factors that shape the Chinese market. If supply chains wish to be successful in China, adaptation regarding these two institutional factors should yield good results.

Supply Chain Adaptation of Finnish Companies in Chinese Institutional Environment

Within the last few decades of operations and supply chain management, the field has seen the rise of so called best practices, methods that will help supply chains obtain their business goals and gain a competitive edge. These methods were thought to be universal. This however is not always the case, as the surrounding business environment could have a significant impact on what will be effective in gaining competitive edge. Contingency theory states that the success of a supply chain is determined by both internal capabilities, as well as external context aligning. This creates a strategic fit, which is a major determinant of success. In order for supply chains to reach this strategic fit, they must adapt. As China has seen rapid growth and over the last few decades become one of the major economies of the world, Western companies have tried to establish themselves there, only to find that the Chinese market is extremely difficult to operate in. The aim of this thesis was to investigate from contingency theory perspective, what are the institutional factors that affect supply chain management of Finnish companies operating in China, and how do Finnish companies adapt their supply chains to better fit the Chinese institutional environment. A theoretical model was created for this thesis, in which supply chains possess resources, which can be combined in a meaningful manner to create capabilities. Both resources and capabilities are affected by the surrounding institutional environment, which forces supply chains to adapt in order to find a better strategic fit. A total of six Finnish managers from three large and three small companies operating in China were interviewed. The results indicated that the Chinese business environment is significantly different, than that of Finland or Western countries in general. Three institutional factors were identified: Confucian though, fast-paced business environment, and managing labor force. These three institutional factors made the relationship and delivery capabilities particularly important, as well as human resources, reputation, physical resources and technological resources. In conclusion, it was discovered that the Chinese institutional environment is heavily affected by Confucian thought, as well as the rapid market growth. These are the two most important institutional factors that shape the Chinese market. If supply chains wish to be successful in China, adaptation regarding these two institutional factors should yield good results.

Materiaalitarpeen suunnitteluprosessin kehittäminen ja varastonohjauksen parantaminen Elektroniikkalaitoksessa

Työ on tehty Puolustusvoimien Elektroniikkalaitoksella Riihimäellä. Elektroniikkalaitos toimii yhtenä vastuuvarikkona ja vastaa omalta osaltaan elektroniikka-alan järjestelmien kunnossapidosta. Työn tarkoituksena on selvittää materiaalitarpeen suunnitteluprosessi, kehittää varastonohjausta ja tutustua SAP-toiminnallisuuksien hyödyntämiseen. Materiaalitarpeen suunnittelemisella ja varastonohjauksen parantamisella pyritään kustannussäästöihin ja kunnossapitoprosessin kokonaisvaltaiseen tehostamiseen. Työssä käsitellään Elektroniikkalaitoksen materiaaliprosessia ja sen suhdetta kunnossapitoprosessiin sekä selvitetään materiaalitarpeen muodostumista ja kysynnän ennustamistarpeita. Samalla esitetään myös varastonohjauksen parantamiskohteita. Materiaalitarpeen suunnitteluprosessista on luotu toimintamalli, jota on testattu pilottiprojektin avulla. Työssätarkastellaan SAP-toiminnallisuuksien hyödyntämistä sekä materiaalitarpeen suunnittelussa, että varastonohjauksessa. Lisäksi esitellään kustannusarviolomake, joka on luotu osaksi materiaalitarpeen suunnitteluprosessia helpottamaan materiaalitäydennysten kustannusarviointia.

Liikevaihdon ja materiaalivirtojen kasvun vaatimukset logistiikkakeskukselle

Incap Furniture Oy on koottavien mäntyhuonekalujen sopimusvalmistaja. Yrityksen tavoitteena on saavuttaa 70 miljoonan euron liikevaihto Kärsämäen tehtaalla vuonna 2008. Suurin osa komponenttituotannosta ostetaan alihankintaverkostosta ja valmiit tuotteet pakataan logistiikkakeskuksessa. Diplomityön tavoitteena oli selvittää miten kasvavat materiaalivirrat saadaan tulevaisuudessa käsiteltyä Kärsämäen tehtaan logistiikkakeskuksessa Työn teoriaosassa on ensin käsitelty mahdollisuuksia vähentää kokoonpanon puutetilanteita ostotoimintaa kehittämällä. Teoriaosassa esitellään lisäksi varastonohjausmenetelmiä, sekä yleisesti varastoinnin tehtäväkenttää. Empiirisessä osassa analysoitiin annettujen tietojen avulla vuoden 2008 tavoitetilaa, sekä simuloitiin tavoitetilan materiaalivirtoja suhteessa logistiikkakeskuksen kapasiteettiin. Kasvavat materiaalivirrat pakottavat kehittämään logistiikkakeskuksen toimintaa. Eräluonteisen toiminnan vuoksi kaikkien komponenttien kohdalla on pyrittävä MRP ohjaukseen. Komponenttientilauseriä on pyrittävä pienentämään vastaamaan todellista tarvetta. Kriittisille A- ja B- komponenteille tarvitaan lisäksi puskurivarastot tasaamaan toimitusajan vaihtelua ulkomaantoimituksissa. Pakkauseristä yli jäävät C nimikkeet tulee varastoida jatkossa erillään logistiikkakeskuksesta ja korkeavarastosta. D- ja E-nimikkeitä ei kannata tuoda ulkomailta, eikä niitä ole kannattavaa varastoida lainkaan. Pakkaamon täytyy toimia tulevaisuudessa kolmessa vuorossa ja korkeavaraston työjonoa on lyhennettävä kolmesta vuorokaudesta 4-6 työvuoroon. Edellä mainituilla toimenpiteillä ja toimitusten aktiivisella seurannalla saavutetaan toimintaympäristö, jolloin logistiikkakeskuksen kapasiteetti riittää materiaalivirtojen kasvaessa.

Materiaalitarvelaskenta, varastonhallinta ja tilausten optimointi - Case pienpanimo

Tämä kandidaatintutkielma tarkastelee, mitkä tekijät vaikuttavat teollisuusyrityksen varastonhallinnan ja materiaalinohjauksen kokonaiskustannuksiin. Kokonaistavoitteena on tunnistaa kohdeyritykselle sopivat varaston- ja materiaalinohjauksen menetelmät sekä tunnistaa kehityskohteita tulevaisuuden kehittämistä varten. Tutkielman teoriaosassa käsitellään varastoinnin motiiveja, kustannustekijöitä ja erilaisia täydennysmenetelmiä sekä esitetään materiaalitarvelaskennan perusteita. Tältä pohjalta tutkielman empiirisessä osiossa tutkitaan kolmen eri raaka-ainetoimittajan osalta tilattavien nimikkeiden vuosikustannusten komponentit erilaisilla vuositilauslukumäärillä ja tilauseräko’oilla. Tuloksena kustannuskomponenttien tarkastelusta saadaan suuntaa antavat vuosikustannukset eri tilausmäärillä tai tilausväleillä. Tulokset pohjautuvat kuitenkin hyvin yksinkertaistettuihin taustaoletuksiin, joten suoraan tulosten pohjalta ei tule toimintatapoja muodostaa. Tutkielman perusteella voidaan todeta, että varastonhallinnan tekijät ovat keskenään ristiriitaisia, mutta oikein valituilla menetelmillä voidaan saavuttaa taloudellisia säästöjä ja kehittää toimintaa sujuvammaksi. Erityisesti materiaalitarvelaskentaan siirtyminen materiaalinhallinnassa ja ajantasainen varastokirjanpito tunnistettiin tärkeiksi jatkokehityskohteiksi.

Web user interface architecture for advanced planning and scheduling systems Case: Nokia Demand / Supply Planning Applications

In modem hitec industry Advanced Planning and Scheduling (APS) systems provide the basis for e-business solutions towards the suppliers and the customers. One objective of this thesis was to clarify the modem supply chain management with the APS systems and especially concentrate on the area of Collaborative Planning. In order Advanced Planning and Scheduling systems to be complete and usable, user interfaces are needed. Current Visual Basic user interfaces have faced many complaints and arguments from the users as well as from the development team. This thesis is trying to analyze the reasons and causes for the encountered problems and also provide ways to overcome them. The decision has been made to build the new user interfaces to be Web-enabled. Therefore another objective of this thesis was to research and find suitable technologies for building the Web-based user interfaces for Advanced Planning and Scheduling Systems in Nokia Demand/Supply Planning business area. Comparison between the most suitable technologies is made. Usability issues of Web-enabled user interfaces are also covered. The empirical part of the thesis includes design and implementation of a Web-based user interface with the chosen technology for a particular APS module that enables Collaborative Planning with suppliers.

Offering Analysis in New Product Launch and Sales Planning

This Master's Thesis has been written for Stora Enso Flexible Packaging Papers business unit. In the North-American mills, the business unit has developed a range of new flexible packaging paper grades. The Master's Thesis researches opportunities for sales of these new flexible packaging papers in selected Western-European markets. This study consists of theoretical and empirical part. Theoretical part presents supply chain of flexible packaging, discovering of customer requirements, concept of an offering, general market analysis, customer analysis and basis for sales planning. Empirical part includes preliminary market analysis based on secondary sources, results of lead user interviews and conclusions and recommendations. Potential customers' technical and commercial requirements were found and these were compared to current Stora Enso Flexible Packaging Papers offering. Also a list of potential new customers was made and sales action suggestions were presented in order to gain new accounts.

Valmistusstrategian muodostaminen uudelle tuoteperheelle

Diplomityön tavoitteena on tutkia valmistusstrategian muodostamista rajaten tarkastelu yhteen tuoteperheeseen. Työn teoriaosuudessa suoritaan kirjallisuuskatsaus, jonka keskeisempänä tuloksena luodaan teoriaviitekehys valmistusstrategian muodostamisesta. Valmistusstrategian osa-alueiksi rajataan toimitusketjun rakenne, tuotantomuodon valinta, kapasiteetin suunnittelu sekä materiaalinohjaus. Työn soveltavassa osuudessa muodostetaan esitetyn teoriaviitekehyksen avulla valmistusstrategiaehdotelma Case – yrityksen uudelle tuoteperheelle. Valmistusstrategian tavoitteet sekä rajoitteet tunnistetaan tarkastelemalla yrityksen ylemmän tason strategioita, markkinavaatimuksia, valmistuksen resursseja sekä päivittäistä toimintaa. Kokonaisuudessaan diplomityö käsittelee valmistusstrategian muodostamista aikaisempaa kirjallisuutta yksityiskohtaisemmin ja käytännönläheisemmästä näkökulmasta. Case – yrityksen uudelle tuoteperheelle ehdotettu valmistusstrategia todetaan seuraavan yleisesti hyviä toimitusketjun johtamisen periaatteita.