Information exchange and disruption risk in multimodal maritime supply chains

Supply chains are becoming increasingly dependent on information ex-change in today’s world, and any disruption can cause severe repercus-sions to the flow of materials in the chain. The speed, accuracy and amount of information are key factors. The aim in this thesis is to address a gap in the research by focusing on information exchange and the risks related to it in a multimodal wood supply chain operating between the Baltic States and Finland. The study involved interviewing people engaged in logistics management in the supply chain in question. The main risk the interviewees identified arose from the sea logistics system, which held a lot of different kinds of information. The threat of breakdown in the Internet connection was also found to hinder the operations significantly. A vulnerability analysis was carried out in order to identify the main actors and channels of infor-mation flow in the supply chain. The analysis revealed that the most important and therefore most vulnerable information-exchange channels were those linking the terminal superintendent, the operative managers and the mill managers. The study gives a holistic picture of the investigated supply chain. Information-exchange-related risks varied greatly. One of the most frequently mentioned was the risk of information inaccuracy, which was usually due to the fact that those in charge of the various functions did not fully understand the consequences for the entire chain.

Tuotantoprosessin kehittäminen LEAN -periaatteita hyödyntäen

Tutkimuksen tarkoituksena oli löytää keinoja kehittää kansainvälisen komponenttitoimittajan tilaus-toimitusprosessia ja parantaa sitä Lean –filosofiaan pohjautuvien menetelmien avulla. Työn teoreettisessa osuudessa tarkasteltiin toimittajayhteistyön muotoja ja kilpailukykyyn vaikuttavia tekijöitä kansainvälisessä ympäristössä Toisena tarkastelun kohteena oli Lean –filosofiaan pohjautuvat, tuotantoprosessille soveltuvat kehittämismenetelmät. Empiirinen osuus keskittyi tilaustoimitusprosessiin tutkimusyrityksessä. Tutkimuksessa selvisi, että resurssien ja osaamisen merkitys tuotannon laadussa ja kehittämisessä on merkittävä. Lisäksi monipuolinen osaaminen tuo joustavuutta toimitusketjuun ja parantaa sisäistä asiakkuus –ajattelua. Tilaustoimitusketjun tehokkuutta voidaan parantaa hyödyntäen tapaukselle parhaiten soveltuvia Lean –menetelmiä ja kehittämällä toimittajayhteistyötä.

Seutulogistisen palveluyrityksen palvelutarjooman kehittäminen

Tämän diplomityön aiheena on palvelutarjooman kehittäminen elintarvikeketjussa toimivalle seutulogistiikan palveluyritykselle. Työn tavoitteena on tuottaa tietoa uudenlaisen logistiikkapalvelun käynnistämisen tueksi. Työssä kartoitetaan kaakkoissuomalaisen elintarvikeketjun logistiikan toimintamalleja ja palvelutarpeita. Aineistona on käytetty 23 elintarvikeketjun osapuolen (tuottaja, jalostaja, myyjä) haastatteluja sekä olemassa olevia selvityksiä aiheesta. Työ sisältää katsauksen kaakkoissuomalaiseen ruokatuotantoon ja elintarvikeketjun eri vaiheiden nykytilaan. Tuloksena ovat jäsennetyt palvelutarpeet elintarvikkeiden toimitusketjun eri osapuolille. Lisäksi palveluyrityksen toimintaa selvennettiin rakentamalla sille liiketoimintamalli, joka sisältää arviot yrityksen tärkeimpien osa-alueiden sisällöstä ja toimintatavasta. Liiketoimintamallin ja eri osapuolien palvelutarpeiden pohjalta työssä rakennettiin kaksi palvelutarpeisiin perustuvaa vaihtoehtoista palvelutarjoomaa ja arvioitiin niiden ominaisuuksia ja toteutettavuutta Kaakkois-Suomessa. Työn sisältö ja lopputulokset ovat julkisesti hyödynnettävissä paikallisesti tuotetun ruoan tuottajien liiketoimintamahdollisuuksien ja palvelun parantamiseksi.

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.

Otantamittauksen kehittäminen osana sellutehtaan puunsyöttöä

Työn tavoitteena on selvittää, kuinka kuitupuun otantamittausprosessia voidaan tehostaa osana sellutehtaan puunkäsittelyä toimitusketjun johtamisen keinoin Stora Enson Enocellin tehtaalla. Työssä syvennytään kuitupuun mittauksen perusteisiin ja menetelmiin sekä selvitetään mittausprosessin keskeisimmät ongelmakohdat kohdeympäristössä. Ongelmakohtien ratkaisemiseksi tutustutaan toimitusketjun johtamisen teorioihin, joiden avulla muodostetaan kuvaus parhaasta mahdollisesta vaihtoehdosta uudeksi otantamittausmenetelmäksi. Ensimmäisessä vaiheessa kohdeympäristöksi rajataan Enocellin tehdas, mutta uuden menetelmän laajemman soveltuvuuden selvittämiseksi tarkastellaan työn lopuksi myös muita määrättyjä Stora Enson tehtaita. Työn tuloksena on perusteltu päätelmä siitä, mikä otantamittausmenetelmä on sekä Stora Enson että tutkimuksen teettäjänä toimivan logistiikkapalveluita ja materiaalinkäsittelykoneita tuottavan Mantsinen Group Ltd Oy:n intresseihin parhaiten sopiva. Työn lopuksi annetaan suositukset parhaaksi valitun menetelmän käyttöönoton aikatauluksi ja toimiksi.

E-PORT. Improving efficiency of Finnish port community by intelligent systems Final report of the Mobile Port project

The management of port-related supply chains is challenging due to the complex and heterogeneous operations of the ports with several actors and processes. That is why the importance of information sharing is emphasised in the ports. However, the information exchange between different port-related actors is often cumbersome and it still involves a lot of manual work and paper. Major ports and port-related actors usually have advanced information systems in daily use but these systems are seldom interoperable with each other, which prevents economies of scale to be reached. Smaller ports and companies might not be equipped with electronic data transmission at all. This is the final report of the Mobile port (MOPO) project, which has sought ways to improve the management and control of port-related sea and inland traffic with the aid of ICT technologies. The project has studied port community systems (PCS) used worldwide, evaluated the suitability of a PCS for the Finnish port operating environment and created a pilot solution of a Finnish PCS in the port of HaminaKotka. Further, the dry port concept and its influences on the transportation system have been explored. The Mobile Port project comprised of several literature reviews, interviews of over 50 port-related logistics and/or ICT professionals, two different kinds of simulation models as well as designing and implementing of the pilot solution of the Finnish PCS. The results of these multiple studies are summarised in this report. Furthermore, recommendations for future actions and the topics for further studies are addressed in the report. The study revealed that the information sharing in a typical Finnish port-related supply chain contains several bottlenecks that cause delays in shipments and waste resources. The study showed that many of these bottlenecks could be solved by building a port community system for the Finnish port community. Almost 30 different kinds of potential services or service entities of a Finnish PCS were found out during the study. The basic requirements, structure, interfaces and operation model of the Finnish PCS were also defined in the study. On the basis of the results of the study, a pilot solution of the Finnish PCS was implemented in the port of HaminaKotka. The pilot solution includes a Portconnect portal for the Finnish port community system (available at https://www.portconnect.fi) and two pilot applications, which are a service for handling the information flows concerning the movements of railway wagons and a service for handling the information flows between Finnish ports and Finland-Russian border. The study also showed that port community systems can be used to improve the environmental aspects of logistics in two different ways: 1) PCSs can bring direct environmental benefits and 2) PCSs can be used as an environmental tool in a port community. On the basis of the study, the development of the Finnish port community system should be continued by surveying other potential applications for the Finnish PCS. It is also important to study if there is need and resources to extend the Finnish PCS to operate in several ports or even on a national level. In the long run, it could be reasonable to clarify whether there would be possibilities to connect the Finnish PCS as a part of Baltic Sea wide, European-wide or even worldwide maritime and port-related network in order to get the best benefit from the system

Toimitusketjuun sitoutuvan pääoman hallinta keskisuuressa metalliteollisuusyrityksessä

Tämän diplomityön tavoitteena on tunnistaa kohdeyrityksen toimitusketjuun sitoutuvan pääoman lähteet ja niihin sitoutunut pääoma, menetelmät pääoman vapauttamiseksi sekä kehityskohteet toimitusketjuun sitoutuneen pääoman hallinnan näkökulmasta. Kes-keisimmät tutkitut pääoman lähteet ovat varastot ja keskeneräinen tuotanto, mutta myös ostovelkoja sekä rahtikustannuksia käsitellään. Varastoitavat nimikkeet jaettiin kahteen pääryhmään, ostettavat ja valmistettavat nimikkeet. Pääryhmät jaettiin edelleen pienem-piin alaryhmiin, nimiketyyppeihin, jotta analyysien tulokset voidaan kohdentaa tarkemmin. Varastoon sidotun pääoman kehityskohteiden tunnistamisessa käytettiin varastoarvoa, keskivarastoa ja kiertonopeutta, sekä näiden kombinaatioita. Tulokset esitettiin sekä pääryhmätasolla, että nimiketyyppitasolla, jotta kehityskohteet olisi helpompi tunnistaa. Keskeneräisen tuotannon osalta tavoitteena oli ensisijaisesti tunnistaa, kuinka suuri osa toimitusketjun pääomasta siihen sitoutuu. Rahtikustannukset tiedetään vuositasolla ja sen kautta on mahdollista arvioida kuukausittain rahteihin keskimäärin sitoutuva pääoma. Ostovelat on käsitelty vain kevyesti, koska se on itse asiassa käyttöpääoman erä. Keskeisimmät löydökset liittyvät kiertonopeuteen ja nimikkeiden ohjaustapaan. Osalla pääomaa varastoon sitovista nimikkeistä kiertonopeus on nolla ja useiden nimikkeiden kohdalla kiertonopeudessa on parannettavaa. Myös osa tilausohjautuvista nimikkeistä sitoo ennakko-odotuksista poiketen pääomaa varastoon. Kaikkiin edellä mainittuihin löy-döksiin tunnistettiin tilanteeseen johtaneet syyt ja määritettiin kehitystoimenpiteet, jotta tilanteet voidaan jatkossa välttää.

Research framework for the connection between environmental collaboration and firm performance

This thesis focuses on collaborative activities with regard to environmental issues both within the firm and outside the firm with the key suppliers and customers, i.e. internal and external environmental collaboration. Integrating environmental thinking into supply chain management has received increasing interest in recent years. The relational view and the natural resource-based-view together suggest that environmental capabilities can be built jointly with supply chain partners and used to gain sustained competitive advantage. Several studies have been undertaken to analyse the connection between environmental activities and firm performance but most studies have taken only economic performance into account. This study pays attention also to two other dimensions of firm performance, intra-firm supply chain performance and environmental performance, and aims at presenting the linkages between them and environmental collaboration. This thesis creates a research framework for the connections between environmental collaboration and firm performance and suggests approaches to analyse these. In order to find out the key concepts and their relationship, an extensive literature review is conducted. The research framework proposes a positive connection between internal and external environmental collaboration and all three dimensions of firm performance. In addition, environmental performance and intra-firm supply chain performance are expected to contribute positively to economic performance. Hence, firms are suggested to benefit from environmental collaboration both within the firm and outside the firm. Empirical testing of the developed research framework is out of the scope of this study. However, this thesis proposes using a mixed methods research approach, including survey research and multiple case studies. Finland State of Logistics 2012 survey commissioned by the Finnish Ministry of Transport and Communications and conducted by Turku School of Economics is used as an example of data for the quantitative phase. The applicability of these two methods is discussed at a general level and with regard to analysing the research framework developed in the thesis. Future research will aim at the development of the research framework and the methods in order to confirm the connection between environmental collaboration and firm performance.

E-business solutions as a part of a customer service portfolio

Tässä työssä tutkittiin sähköisen liiketoiminnan palveluiden tarvetta kartonkiteollisuudessa. Palveluiden tarvetta ja sisältöä tutkittiin suomalaisessa metsäteollisuusyrityksessä. Tutkimus suoritettiin teemahaastatteluin ja sitä täydennettiin tekemällä yritys case. Tutkimuksen pohjana toimi esiselvitys, jossa muutamia sähköisen liiketoiminnan palveluita oli tunnistettu. Sähköisen liiketoiminnan palveluiden on havaittu lisääntyneen merkittävästi yritystenvälisessä liiketoiminnassa. Kuluttajakaupassa sähköisen liiketoiminnan palvelut ovat olleet jo pitkään käytössä. Sähköisen kaupankäynnin lisääntyminen on ajanut yrityksiä perustamaan sähköisiä kauppapaikkoja, modernisoimaan toimitusmallejaan tai palvelukonseptejaan sekä huomioimaan sähköisen tiedonvaihdon vaikutuksia liiketoimissaan. Tutkimuksen tulokset johtivat kolmeen johtopäätökseen. Tutkimus osoitti, että sähköisen liiketoiminnan palvelut ovat osa nykyaikaista yritystenvälistä liiketoimintaa. Palveluita on olemassa ja niitä on tarjolla yrityksen kilpailijoiden toimesta maailmanlaajuisesti. Toiseksi tutkimus osoitti, että toimitusketjun tulevaisuus on palveluiden kehittämisessä ja niiden rakentamisessa. Kartonkituotteet lähenevät toisiaan laadullisesti kokoajan, sähköiset palvelut voivat tuoda kilpailuetua ja niiden avulla voidaan erottua markkinoilla. Kolmanneksi, sähköiseen liiketoimintaan on panostettava ja palveluita on rakennettava toimitusmalleja tukevaksi. Palveluiden sisällön on huomioitava asiakastarpeet.

Preparation for ramp-up production process in metal manufacturin

Collaboration is essential for successful new product development. In the preparation for ramp-up production collaboration between R&D and supply chain functions is crucial. This thesis examines the meaning of collaboration and the effects of collaboration between R&D and supply chain. The aim of this thesis is to analyse and advice on how to improve the collaboration between the research and development department and supply chain within the preparation for rampup process. This thesis begins by introducing the reader to the product development methodologies and collaboration literature. The following part of the thesis describes the current situation and the results of the qualitative research. The last part of the thesis will explain the improvement suggestions. The main improvement suggestions are clarification of the processes and responsibilities and the introduction of a kick-off meeting.

The accumulation of financial and social capital as a means to achieve a sustained competitive advantage for consumer co-operatives

By so far, scholars have discussed how the characteristics of consumer co-operatives (cooperative principles, values and the dual role of members as the users and owners) can potentially give them a competitive advantage over investor-owned firms (IOFs). In addition, concern for the community (as partly derived from locality and regionality) has been seen as a potential source of success for consumer co-operatives. On the other hand, the geographicbound purpose of consumer co-operation causes that consumer co-operative can be regarded as a challenging company form to manage. This is because, according to the purpose of consumer co-operation, co-operatives are obligated to 1) provide the owners with services and goods that are needed and do so at more affordable prices than their competitors do and/or 2) to operate in areas in which competitors do not want to operate (for example, because of the low profitability in certain area of business or region). Thus, consumer co-operatives have to operate very efficiently in order to execute this geographic-bound corporate purpose (e.g. they cannot withdraw from the competition during the declining stages of business). However, this efficiency cannot be achieved by any means; as the acceptance from the important regional stakeholders is the basic operational precondition and lifeline in the long run. Thereby, the central question for the survival and success of consumer co-operatives is; how should the consumer co-operatives execute its corporate purpose so it can be the best alternative to its members in the long run? This question has remained unanswered and lack empirical evidence in the previous studies on the strategic management of consumer cooperation. In more detail, scholars have not yet empirically investigated the question: How can consumer co-operatives use financial and social capital to achieve a sustained competitive advantage? It is this research gap that this doctoral dissertation aims to fulfil. This doctoral dissertation aims to answer the above questions by combining and utilizing interview data from S Group co-operatives and the central organizations in S Group´s network (overall, 33 interviews were gathered), archival material and 56 published media articles/reports. The study is based on a qualitative case study approach that is aimed at theory development, not theory verification (as the theory is considered as nascent in this field of study). Firstly, the findings of this study indicate that consumer co-operatives accumulate financial capital; 1) by making profit (to invest and grow) and 2) by utilizing a network-based organizational structure (local supply chain economies). As a result of financial capital accumulation, consumer co-operatives are able to achieve efficiency gains but also remain local. In addition, a strong financial capital base increases consumer co-operatives´ independence, competitiveness and their ability to participate in regional development (which is in accordance with their geographically bound corporate purpose). Secondly, consumer cooperatives accumulate social capital through informal networking (with important regional stakeholders), corporate social responsibility (CSR) behaviour and CSR reporting, pursuing common good, and interacting and identity sharing. As a result of social capital accumulation, consumer co-operatives are able to obtain the resources for managing; 1) institutional dependencies and 2) customer relations. By accumulating both social and financial capital through the above presented actions, consumer co-operatives are able to achieve sustained competitive advantage. Finally, this thesis provides useful ideas and new knowledge for cooperative managers concerning why and how consumer co-operatives should accumulate financial and social capital (to achieve sustained competitive advantage), while aligning with their corporate purpose.

Supply network risks and costs in Finnish project business

This report summarizes the results of the survey HAVERI – Supply network risks in business. The survey was conducted in Finland during the spring and summer of year 2013. The survey is part of a large two-year research project started in June 2012 in Finland (on-going 06/2012–07/2014). The project is launched and financed by TEKES, the Finnish Funding Agency for Technology and Innovation, and executed together with the researchers from Lappeenranta University of Technology and Tampere University of Technology. The overall goal of this on-going research project is to find out the decision-making practices in the project-oriented companies in their purchasing decisions especially in the mechanical engineering and construction industries in Finland. The objective of the survey was to gain cross-sectional data concerning the challenges, risks and cost factors in Finnish project business companies. The results show that Finnish companies rely on their experience and supplier references in their risk management. In general, the understanding of the total cost structure varies among the industries and companies. The main cost factor in risk management was costs before the actual purchase decision. Overall, it seems that the monetary value of the whole project and capability of purchasing personnel are the main influencing factors on risk management activity in project purchasing.

Julkiset luomu- ja lähiruokahankkeet toimitusketjunäkökulmasta tarkasteltuna

Luomu- ja lähiruokaliiketoiminta on vielä varsin marginaalista Suomessa, mutta alalla on selkeästi kasvupotentiaalia. Sektoria on pyritty kehittämään julkisten, muun muassa EU-rahoitettujen, hankkeiden avulla. Tässä työssä on tutkittu vuosina 2007 – 2013 toteutettuja luomu- ja lähiruokahankkeita toimitusketjunäkökulmasta käsin. Tutkimuksen kohteena ovat olleet hankkeisiin liittyvät toimitusketjun osaamisalueet sekä hankkeiden tavoitteet, kohderyhmät ja tulokset. Bechmarking-mielessä on luotu silmäys Ranskan, Italian ja Itävallan luomu- ja lähiruokaliiketoimintaan. Työn otoksen muodostavat 105 julkista luomu- ja lähiruokahanketta. Työssä muodostettiin teorialähtöisesti kuusi toimitusketjun osaamisaluetta, joiden avulla hankkeita kategorisoitiin ja analysoitiin. Osaamisalueet ovat yhteistyö-/verkosto-osaaminen, logistiikka-/jakeluosaaminen, markkinointi-/myyntiosaaminen, talous-/yrittäjyysosaaminen, tuote-/tuotekehitysosaaminen sekä tuotanto-osaaminen. Tutkittujen hankkeiden yleisin tavoite liittyy yhteistyö- ja verkosto-osaamisen kehittämiseen. Hankkeista voitiin osoittaa neljä erilaista yhteistyön muotoa. Yleisin kohderyhmä on luomu- ja lähiruoan tuottaja. Eurooppalaisissa esimerkeissä korostuvat kuluttajalähtöisyys, järjestäytyneet yhteistyömuodot sekä vähittäiskaupan merkittävä rooli luomu- ja lähiruoan jakelijana.

Supplier codes of conduct: Acting responsibly in global supply chains

Nowadays the Western companies are considered responsible for the social and environmental issues in their whole supply chains. To influence the practices of their suppliers the Western companies have created suppliers codes of conduct (SCCs) which express their requirements. Suppliers’ compliance with the SCCs is checked through audits. The purpose of this thesis is to analyze SCCs as a means for Western companies to ensure socially and environmentally responsible actions in their global supply chains, and the sub-objectives are to find out 1) how well do the SCCs and their auditing work at suppliers’ production sites and 2) how can possible problems related to SCCs and their auditing be solved. This is a qualitative research carried out in the form of a case study with two case companies. In this study both primary and secondary data is used. The primary data is collected in the form of interviews of the case company representatives and three external experts. Based on a theoretical framework of previous research in the fields of corporate social responsibility and supply chain management, a model with eleven factors, which influence the success of SCC implementation and the auditing of SCC –implementation, is drafted. Also several different best-practices to help to solve and avoid possible problems related to SCC -implementation and auditing have been identified from previous research. Based on the findings of this study the theoretical model has been updated adding two new influential factors. It seems that how well the SCC and its auditing work at suppliers’ production sites depends on the joint effect of thirteen influential factors: buyer’s purchasing policy, supplier’s motivation, buyer’s commitment, the solving of agency problems, the contents of the SCC, supplier’s role and the buyer-supplier –relationship, complexity of supply chain, the limitations of the smaller buyers, cooperation through a business association or multi-stakeholder system, the role of supplier’s employees, SCC –related communication and supplier’s understanding, cheating in audits and the auditors. The possible problems related to SCCs and their auditing can be solved by adopting best-practices. Nine of the theoretical best-practices stand out from the findings of this study: 1) two-way communication and collecting feedback from suppliers, 2) the philosophy of continuous improvement, 3) long-term business relationships with the supplier, 4) informing the supplier about the advantages of SCC –compliance, 5) rewarding code-compliant suppliers, 6) building collaborative, good buyer-supplier relationships, 7) supporting and advising the supplier, 8) joining a business association or multi-stakeholder system and 9) interviewing supplier’s employees as a part of the audits.

Developing of Supportive Context for Eco-Industrial Networks in Finland

The aim of the present thesis was to explore possible promotional actions to support the emergence of eco-industrial business networks in Finland. The main objectives were to investigate what kind of factors affect in the development of eco-industrial networks and further make suggestions in what kinds of actions this could be supported. In addition, since the active facilitation was discovered as one potential promoting activity, further investigation about facilitation process in Finnish context was conducted and also main characteristics of nationwide facilitation programme were identified. This thesis contains literature review of network orchestration and eco-industrial networks. The latter consists of green supply chain management and industrial symbiosis, although the main focus of the study leans on the concept of industrial symbiosis. The empirical data of the study was obtained from semi-structured expert interviews. These interviews were analyzed using qualitative content analysis. The study identified four main promotional activities for eco-industrial networks: 1) building awareness, 2) incentives, 3) dismantling of legislative barriers and 4) active facilitation. In addition, a framework for facilitation activities in Finnish context was built and main characteristics of nationwide facilitation programme were identified.