The role of power relations in strategic supply management – A value net approach

Supplier relationships are key elements of supply management and thus have attracted substantial research interest among academics and practitioners. The collaborative nature of relationships has been the focus of the mainstream research, and limited interest has been channelled towards power in buyer–supplier relationships. However, power is one of the key factors determining the outcomes in many business relations. Hence, one of the main objectives of this dissertation is to clarify how power may influence the nature of buyer–supplier relationships and, moreover, the depth of collaboration. Another main objective is to clarify the role of power relations in strategic supply management. Given the different nature of relationships, the firm needs divergent strategies in its supply management in order to handle them efficiently. Power has been identified as one of the factors that affect the nature of buyer–supplier relationships, and firms should thus develop strategies for handling power relations. Three research questions are addressed in pursuit of these objectives, the aim being to clarify the sources of power, the influence of power on collaboration, and the role of buyer–supplier relationships in the firm’s supply strategy. This dissertation has two parts. The first part provides a synthesis of the overall dissertation, and the second part comprises five complementary research papers. The qualitative research method is applied in an empirical case study from the Finnish food industry. The main contribution of this dissertation is that it clarifies the role of power relations in strategic supply management in value nets, and discloses the nature of power as an influencing factor in supplier relationships. It extends the discussion on power in buyer– supplier relationships in highlighting the context of networks and raising the question of network effects on power relations. It also illustrates how power positions and power relations in value nets can be determined based on the sources of power of the network actors, and shows their influence on collaboration.

Investment risks in Russia: A Finnish perspective

Purpose of this study is to analyze the effect of Russia's economic environment changes in the total return indexes of Finnish companies. The research data consisted of Finnish publicly listed companies, which have made physical investments to Russia, and operating in the area. The study used six different variables to model the Russian operating environment. The data consists of total return indexes of Finnish companies. From those we calculated the monthly mean interval between timeline of 1 January 2000 to 31 December 2009. Sample period is divided into two different parts. Variables impact on companies' total return indices is tested by regression analysis. By F-test we tested significance of model and squared coefficient correlation told us how much model explains from changes. Goodness of the β-coefficient is tested in the model by t-test. The research results shows that the Russian operating environment, or changes in which the active Finnish companies in total return indices. On partial sample periods results were not so significant.

Strategic supply chain alignment to customer buying behavior

In search for competitive advantage, designing and managing supply chain networks have become a necessary competence for organizations. The target of this thesis is to answer a question, how to design a multiple supply chain network. The purpose is to study, what kind of different supply chain designs exist and, how to choose appropriate supply chain designs for a company. In the thesis, the focus is on the supply chain alignment to customers, more specifically to customer buying behavior. The research method was a case study. A framework for measuring customer buying behavior was developed based on the literature and it was used in the study of customer buying behavior in the case environment. In the case company structured interviews and data records were used as sources of evidence. Persons working in the customer-interface were interviewed face-to-face and through an e-mail questionnaire. When analyzing the data, a Quality function deployment matrix was used as one analysis method. As a result of the thesis, supply chain network of the case company is proposed to be divided into three separate supply chains, which focus on different areas and they could be called lean, agile and continuous replenishment supply chains. In conclusion, in the supply chain alignment to customer buying behavior several aspects have to be studied from different perspectives. According to the results, a multiple supply chain strategy is recommended to be implemented in the case company, since the diversity of the customer needs cannot be managed efficiently through a single supply chain.

Finnish Critical Industries, Maritime Transport Vulnerabilities and societal Implications

Maritime transports are very essential for Finland as over 80% of the foreign trade in the country is seaborne and possibilities to carry out these transports by are limited. Any disruption in maritime transports has negative consequences to many sectors in the Finnish economy. Maritime transport thus represents critical infrastructure for Finland. This report focuses on the importance of maritime transports on security of supply in Finland and for the so called critical industries in particular. The report summarizes the results of the Work Package 2 of the research project STOCA – “Study of cargo flows in the Gulf of Finland in emergency situations”. The aim of the research was to analyze the cargo flows and infrastructure that are vital for maintaining security of supply in Finland, as well as the consequences of disruptions in the maritime traffic for the Finnish critical industries and for the Finnish society. In the report we give a presentation of the infrastructure and transport routes which are critical for maintaining security of supply in Finland. We discuss import dependency of the critical industries, and the importance of the Gulf of Finland ports for Finland. We assess vulnerabilities associated with the critical material flows of the critical industries, and possibilities for alternative routings in case either one or several of the ports in Finland would be closed. As a concrete example of a transport disruption we analyze the consequences of the Finnish stevedore strike at public ports (4.3.–19.3.2010). The strike stopped approximately 80% of the Finnish foreign trade. As a result of the strike Finnish companies could not export their products and/or import raw materials, components and spare parts, or other essential supplies. We carried out personal interviews with representatives of the companies in Finnish critical industries to find out about the problems caused by the strike, how companies carried out they transports and how they managed to continue their operations during the strike. Discussions with the representatives of the companies gave us very practical insights about companies’ preparedness towards transport disruptions in general. Companies in the modern world are very vulnerable to transport disruptions because companies regardless of industries have tried to improve their performance by optimizing their resources and e.g. by reducing their inventory levels. At the same time they have become more and more dependent on continuous transports. Most companies involved in foreign trade have global operations and global supply chains, so any disruption anywhere in the world can have an impact on the operations of the company causing considerable financial loss. The volcanic eruption in Iceland in April 2010 stopping air traffic in the whole Northern Europe and most recently the earth quake causing a tsunami in Japan in March 2011 are examples of severe disruptions causing considerable negative impacts to companies’ supply chains. Even though the Finnish stevedore strike was a minor disruption compared to the natural catastrophes mentioned above, it showed the companies’ vulnerability to transport disruptions very concretely. The Finnish stevedore strike gave a concrete learning experience of the importance of preventive planning for all Finnish companies: it made them re-think their practical preparedness towards transport risks and how they can continue with their daily operations despite the problems. Many companies realized they need to adapt their long-term countermeasures against transport disruptions. During the strike companies did various actions to secure their supply chains. The companies raised their inventory levels before the strike began, they re-scheduled or postponed their deliveries, shifted customer orders between production plants among their company’s production network or in the extreme case bought finished products from their competitor to fulfil their customers’ order. Our results also show that possibilities to prepare against transport disruptions differ between industries. The Finnish society as a whole is very dependent on imports of energy, various raw materials and other supplies needed by the different industries. For many of the Finnish companies in the export industries and e.g. in energy production maritime transport is the only transport mode the companies can use due to large volumes of materials transported or due to other characteristics of the goods. Therefore maritime transport cannot be replaced by any other transport mode. In addition, a significant amount of transports are concentrated in certain ports. From a security of supply perspective attention should be paid to finding ways to decrease import dependency and ensuring that companies in the critical industries can ensure the continuity of their operations.

Supply management capability

The objective of this thesis is to define supply management capability. The thesis study what factors consist of supply management capability, and which of those factors are critical to achieving competitive advantage. One objective is also to study how firms can measure their supply management capability. This study is a qualitative research. The thesis examines the literature regarding to supply management and the context of capability and there are used Delphi panel to examine the current and future insights of supply management professionals concerning of supply management skills and capability. The empirical data of the thesis was collected by interviews. The Delphi panel was used in data collection and analysis and for prioritization of the factors of supply management capability. The thesis includes lists of factors of supply management capability. Main findings of the study were that there is no one clear, generally suitable set of supply management skills which bring competitive advantage for all firms and the most important factors of supply management capability, according to the experts, are total cost analysis, customer focus, general business view, market knowledge and supplier relationships. In this study the supply management capability is defined as organization’s overall capacity and ability to achieve a holistic understanding of purchasing needs, manage its suppliers and collaborative partners, and conduct its internal tasks, routines and responsibilities in a way that achieves desired results. The results of this thesis show also that Finnish firms need more right kind of supply management knowledge.

The effect of wood supply and bleaching process on pulp brightness stability

One hundred different 5.5-year-old Eucalyptus grandis x Eucalyptus urophylla wood clones were cooked to kappa number 15-17.5 and the resulting kraft pulps oxygen-delignified to kappa 9.5-11.5 under fixed conditions, except for chemical charges. Thirteen samples showing large variations in effective alkali requirement, pulp yield and O-stage efficiency and selectivity were selected for brightness reversion studies. These samples were bleached to 90-91% ISO by DEDD and DEDP sequences and their brightness stability and chemical characteristics determined. Heat reversion of the eucalyptus kraft pulps was strongly influenced by the wood supply, with brightness loss varying in the range of 2.1-3.6 and 0.8-1.7 %ISO for ODEDD and ODEDP bleached pulps, respectively. Pulps bleached by the ODEDP sequence showed reversion values 1.3-1.9 % ISO lower than those bleached by the ODEDD sequence. Pulp carbonyl content decreased by 35-40% during the final peroxide bleaching stage. Carbonyl and carboxyl groups correlated positively with brightness reversion, as did permanganate number and acid soluble lignin. Pulp final viscosity and metal and DCM extractives contents showed no significant correlation with brightness reversion. Pulping, oxygen delignification and ECF bleaching performances also showed no correlation with brightness reversion.

Mikkelin Pursialan pohjavesialueen haitta-aineet

Mikkelin talousvedestä kahden kolmasosan tullessa Pursialan pohjavesialueelta on alueen suojeleminen tärkeää. Pohjaveden laatua uhkaavat etenkin alueella sattuneet pohjavedenpilaantumistapaukset. Merkittävimmät pohjaveden pilaantumistapaukset ovat VAPO Oy:n sahan aiheuttama pohjaveden pilaantuminen kloorifenoleilla (CP) ja VR:n ratapölkkykyllästämön aiheuttama pohjaveden pilaantuminen kreosoottiöljyllä sekä Rinnekadun Nesteen aiheuttama pohjaveden pilaantuminen MTBE:llä. Alueella on tehty tutkimuksia ja kunnostuksia pilaantumiin liittyen, mutta näiden tuloksia ei ole aikaisemmin koottu yhteen. Tämän työn tavoitteena oli koota tulokset samaan aineistoon. Työssä keskityttiin kloorifenolien leviämisen tarkasteluun sen Pursialan pohjavedenottamolle muodostaman suurimman uhan vuoksi. Kallioperätietojen, maanpintatietojen ja näytetietojen pohjalta laadittiin myös pienoismalli CP-pilaantuman leviämisen kokonaiskuvan hahmottamiseksi. Työn tavoitteena oli lisäksi tehdä riskitarkastelua CP-pilaantumaan liittyen ja etsiä keinoja hallita havaittuja riskejä. Riskinhallintaan liittyen työssä tutkittiin kloorifenoleilla pilaantuneen alueen maaperä- ja kalliotietoja sekä pohjaveden laatutietoja. Pursialan pohjavedessä on runsaasti rautaa ja mangaania sekä aggressiivista hiilihappoa. Pohjaveden pH on alueella noin 6,5, lämpötila noin 7,5 ºC ja happipitoisuus noin 0,7 mg/l. Pursialan kaupunginalueen kallioperässä on havaittavissa VAPO Oy:n sahalta vedenottamolle etenevä kalliopainanne, jota pitkin CP etenee. Alueen kallioperä on kiillegneissiä, jossa on pohjois–etelä-suuntaista rakoilua. Maaperätuloksien perusteella on havaittavissa vettä hyvin johtavien maakerrosten jatkuminen koko vedenottamon ja sahan välisen matkan, mikä tarkoittaa, että CP-pitoisella pohjavedellä voi olla aiemmin oletettua nopeampikin yhteys sahalta vedenottamolle. Suurin CP-pitoisuus noin 100 000 µg/l on mitattu KY-5-altaan kohdalle asennetun M14-pohjavesiputken pohjasta. Talousvesiasetuksen raja-arvo CP:lle on 10 µg/l. Sahan ja vedenottamon puolivälissä on havaittu yli 10 000 µg/l meneviä CP-pitoisuuksia. Suurin vedenottamon kaivoista (kaivo 10) mitattu pitoisuus on 149 µg/l. Jakotukilta raakavedestä otetuissa näytteissä tai talousvedessä ei ole kuitenkaan havaittu talousvesiasetuksen ylittäviä CP-pitoisuuksia. Pienoismallin perusteella CP sijaitsee sahan alueella lähellä kallionpintaa ja hajaantuu koko pohjavesipatjaan vedenottamolle päin mentäessä. CP-mittaustuloksissa on havaittavissa pulssimaisuutta. Tämä johtuu todennäköisesti Saimaan pinnan vaihtelun seurauksena muuttuvasta rantaimeytyneen pohjaveden määrästä. Saimaan pinnan nousu näyttäisi tuloksien perusteella nostavan CP-pitoisuuksia saha-alueella ja laskevan lähellä vedenottamoa. Pohjaveden pintatietojen perusteella tehdyn tarkastelun mukaan pohjavesi voi kulkeutua sahalta vedenottamolle parhaimmillaan noin vuodessa. Työssä arvioitiin KY-5–liuoksen vuosittaiseksi käyttömääräksi noin 648–970 m3. Allassakkaa arvioitiin syntyneen yhteensä noin 10–31 m3. Pohjaveteen arvioitiin joutuneen toiminnan aikana yhteensä noin 3 000–4 000 kg CP:tä. Kloorifenolit esiintyvät pohjavedessä lähes täysin kloorifenolaatteina. Kloorifenolien hajoaminen ja muuntuminen pohjavedessä on epätodennäköistä. Käsitteellisen mallin mukaan kloorifenolipilaantuman suurimmat riskit aiheutuvat kloorifenolien mahdollisuudesta pilata Pursialan vedenottamon talousvesi. Tällä hetkellä riskejä hallitaan kloorifenolien leviämisen tarkkailulla, sahan ja vedenottamon puolivälissä sijaitsevalla koepumppauksella sekä varautumalla aktiivihiilijauheen syöttöön talousvesiprosessiin. Koepumppauksen avulla on saatu ylös tällä hetkellä noin 69 kg kloorifenoleita. Tutkimuksen perusteella suositeltavimmat riskinhallintatoimet tulevaisuudessa ovat sahalla sijaitseva kunnostuspumppaus, sahan ja vedenottamon väliin sijoittuva suojapumppaus- ja vesiverhoyhdistelmä sekä sahan rannan kautta tapahtuvan rantaimeytymisen estäminen.

BIOMASS SUPPLY CHAIN ANALYSIS WITH DENSIFIED WASTE

ABSTRACT The possibility to vary the energy matrix, thus reducing the dependency on fossil fuels, has amplified the acceptance of biomass as an alternative fuel. Despite being a cheap and renewable option and the fact that Brazil is a major producer of waste from agriculture and forestry activities, the use of these materials has barriers due to its low density and low energetic efficiency, which can raise the costs of its utilization. Biomass densification has drawn attention due to its advantage in comparison to in natura biomass due to its better physical and combustion characteristics. The objective of this paper is to evaluate the impact of biomass densification in distribution and transport costs. To reach this objective, a mathematical model was used to represent decisions at a supply chain that coordinates the purchase and sale of forestry and wood waste. The model can evaluate the options to deliver biomass through the supply chain combining demand meeting and low cost. Results point to the possibility of an economy of 60% in transport cost and a reduction of 63% in the required quantity of trucks when densified waste is used. However, costs related to the densifying process lead to an increase of total supply costs of at least 37,8% in comparison to in natura waste. Summing up, the viability of biomass briquettes industry requires a cheaper densification process.

Activation of supply relationships : a study of main providers in the Turku logistics cluster

Företag inom industri och handel väljer allt oftare att låta ett logistikföretag sköta stora delar av sina logistiska processer. Logistikföretagen i sin tur överlåter utförandet av enskilda tjänster, som t.ex. olika typer av transport, till olika samarbetspartners inom branschen. I avhandlingen studeras hur logistikföretag går till väga då de väljer vilka av deras samarbetspartners som ska engageras för att delta i utförandet av ett logistiktjänstepaket, en arbetsprocess som här kallas aktivering. Fokus ligger på aktiveringens innehåll och de faktorer som inverkar på hur den går till och vilka samarbetsparter som kommer att engageras. Arbetet bygger på nätverksansatsen för studier av företagsrelationer på industriella marknader. Aktiveringsprocessen uppfattas som en rätt ordinär, rutinmässig verksamhet i företaget, men den kan också förväntas inverka på hur företagets samarbetsnätverk utvecklas över tiden, genom att vissa relationer förstärks medan andra försvagas. I den empi riska undersökningen deltog 29 logistikföretag i Åboregionen som utgående från ett diskussionsunderlag fick berätta om hur de går till väga vid aktivering.

Role of Capabilities in Purchasing and Supply Management Performance

The objective of this thesis was to study the role of capabilities in purchasing and supply management. For the pre-understanding of the research topic, purchasing and supply management development and the multidimensional, unstructured and complex nature of purchasing and supply management performance was studied in literature review. In addition, a capability-based purchasing and supply management performance framework were researched and structured for the empirical research. Due to the unstructured nature of the research topic, the empirical research is three-pronged in this study including three different research methods: the Delphi method, semi-structured interview, and case research. As a result, the purchasing and supply management capability assessment tool was structured to measure current level of capabilities and impact of capabilities on purchasing and supply management performance. The final results indicate that capabilities are enablers of purchasing and supply management performance, and therefore critical to purchasing and supply performance.

Technical and economic indicators of the yellow passion fruit tree irrigated with underground water supply

The research aimed to quantify technical and economic indicators of yellow passion fruit tree irrigated with fractions of irrigation with underground source of water, to generate information that helps farmers in decision making on the implementation of investment in irrigated fruit growing (yellow passion fruit). For this purpose, we used the passion fruit crop irrigated with Microjet type irrigation system, with conducting system in simple espaliers. The treatments consisted of five hours of application of the depth of water required by the crop with irrigation frequency of two days. The results showed that the highest yield (16660kg ha-1) was obtained with the fractionation of irrigation twice a day (50% to 7h and 50% to 21h30), which provided an increase in productivity of 54%, demonstrating the financial viability and being highly profitable to the interest rate of 2% per year, with low sensitivity of financial risk to real interest rates above the prevailing market.