Designing of Balanced Performance Measurement System to Purchasing Process

The performance measurement produces information about the operation of the business process. On the basis of this information performance of the company can be followed and improved. Balanced performance measurement system can monitor performance of several perspectives and business processes can be led according to company strategy. Major part of the costs of a company is originated from purchased goods or services are an output of the buying process emphasising the importance of a reliable performance measurement of purchasing process. In the study, theory of balanced performance measurement is orientated and framework of purchasing process performance measurement system is designed. The designed balanced performance measurement system of purchasing process is tested in case company paying attention to the available data and to other environmental enablers. The balanced purchasing performance measurement system is tested and improved during the test period and attention is paid to the definition and scaling of objectives. Found development initiatives are carried out especially in the scaling of indicators. Finally results of the study are evaluated, conclusions and additional research areas proposed.

Improving purchasing process for small purchases at a manufacturing company in chemical industry

This thesis was conducted on assignment by a multinational chemical corporation as a case study. The purpose of this study is to find ways to improve the purchasing process for small purchases at the case company. The improvements looked after are mainly cost and time savings. Purchasing process is the process that starts from the requisition of goods or services and ends when the invoice is paid. In this thesis the purchases with value less than 1000€ are considered to be small. The theoretical framework of the thesis consists of general theoretical view of costs and performance of the purchasing process, different types of purchasing processes and a model for improving purchasing processes. The categorization to small and large purchases is the most important followed by the division between direct and indirect purchases. Also models that provide more strategic perspective for categorization were found to be useful. Auditing and managerial control are important parts of the purchasing process. When considering the transaction costs of purchasing from the costs–benefits perspective large and small purchases should not have the same processes. Purchasing cards, e-procurement and vendor managed inventory are seen as an alternative to the traditional purchasing process. The empirical data collection was done by interviewing the company employees that take part of the purchasing process in their daily work. The interviews had open-ended questions and the answers were coded and analyzed. The results consist of process description and assessment as well as suggestions for potential improvements. At the case company the basic purchasing process was similar to the traditional purchasing process that is entirely done with computers and online. For some categories there was already more sophisticated e-procurement solutions in use. To improve the current e-procurement based solutions elimination of authorization workflow and better information exchange can be seen as potential improvements for most of the case purchases. Purchasing cards and a lightweight form of vendor managed inventory can be seen as potential improvements for some categories. Implementing the changes incurs at least some cost and the benefits might be hard to measure. This thesis has revealed that the small purchases have potential for significant cost and time savings at the case company.

A Review of the State's Leased Space and the Leasing Process, General Services Enterprise of the Department of Administrative Services, July 1, 1998 through June 30, 2003

Other Audit Reports - State Leasing

Purchasing Process Performance Definition and Improvement in the Mechanical Wood Industry

Tämän tutkimuksen ensisijaisena tavoitteena oli määrittää Schauman Wood Oy:n ostoprosessin suorituskyvyn nykytila yrityksen Suomen yksiköissä. Nykytila-arviointi suoritettiin uusien ja käytössä olevien mittaustulosten avulla. Tutkimuksessa verrattiin kymmenen tuotantolaitoksen ostoprosesseja keskenään. Keskeinen tutkimusongelma oli ostoprosessin suorituseroja aikaansaavien tekijöiden selvittäminen eri yksiköissä. Tutkimuksen tavoitteena oli saavuttaa yhtenäisemmät toimintatavat yrityksessä sekä laajentaa konsernin osto-organisaation hyödyntämistä hankintatoimessa. Tavoitteena oli ostoprosessin virtaviivaistaminen ja tehokkaamman seurantajärjestelmän kehittäminen. Ostotoimintojen suorituskyvyn jatkuva parantaminen perustuu osittain uusien mittareiden avulla saatavaan informaatioon ja täsmällisempään seurantaan. Sisäistä benchmarkingia käytettiin työkaluna suorituskyky-eroavaisuuksien määrittelyssä. Tietoa erilaisista toimintatavoista kerättiin haastattelemalla yrityksen ostajia ja tehdaspalvelupäälliköitä eri tehdaspaikkakunnilla. Sisäisen benchmarkingin avulla määriteltiin toimintatapa eroavaisuudet sekä kehitettiin seurantakortti, jossa jokaista yksikköä verrataan parhaaseen ja eniten kehittyneeseen yksikköön. Työn tuloksina muodostui ehdotuksia ostotoiminnon uusiksi mittareiksi. Uudet mittarit ovat tehokkuusmittareita, jotka kuvaavat resurssien käytön tehokkuutta sekä auttavat seuraamaan ostoprosessin tilaa entistä paremmin. Uusien mittareiden tavoitteena on myös vähentää mittareiden manipulaatiomahdollisuutta. Työn ulkopuolelle rajattiin informaatioteknologiajärjestelmien tietotekninen osuus. Eräs yrityksen tuotantolaitoksista rajattiin myös työn ulkopuolelle, koska sen ostoprosessit ovat huomattavasti kehittymättömämpiä kuin Schauman Woodin muiden tehtaiden ostoprosessit. Kyseisen yksikön kehittämisen tulee lähteä aivan ruohonjuuritasolta. Tutkimuksen teoriaosuus on kerätty alan ammattikirjallisuudesta ja tutkimuksen aihetta käsittelevistä uudehkoista tieteellisistä alan artikkeleista. Teorian tarkoituksena on tukea empiiristä osuutta sekä antaa lukijalle uusia näkemyksiä ostotoiminnan monista mahdollisuuksista. Tutkimuksen tuloksia ovat nykytila-analyysi, ehdotukset uusista ostotoiminnan mittareista sekä ehdotus MRO-tuotteiden ulkoistamiskokeilusta. Yrityksen ostotoiminnan tulisi kehittyä operatiivisesta tasosta kohti strategisempaa oston tasoa. Johdon sitoutuminen hankintatoimen kehityshankkeisiin on erityisen tärkeää, lisäksi hankintatoimi tulisi nähdä strategisempana osa-alueena yrityksessä. Hankintatoimen kehittämisen avulla yrityksen kustannustehokkuutta voidaan lisätä merkittävästi.

Purchasing Process of Industrial Solutions – Added Value, Difficulties and Good Practices

Purpose of this study is to clarify the industrial solutions purchasing process from purchaser companies’ point of view. Also customer’s view on value generating aspects and difficulties in purchases will be discussed as well as different purchas-ing entities where customers have ended up in their solution purchases. Current solution literature is mainly concentrated in supplier views and customer perspec-tive has been left without adequate attention. However, knowledge of the customer and the identification of customer need are at the core of a successful solution business. The focus of this thesis is on Finnish companies’ solution purchases that have been realized during last five years. Industrial solutions in this case are facto-ries or other large industrial plants. Industrial solutions’ purchasing process will be opened all the way from discovering the need until the start-up of the plant. Of in-terest is the customer experience of the success of the acquisition and the pur-chaser’s view on good practices allowing a successful procurement project.

Social media in the purchasing of knowledge-intensive business services

The purpose of this thesis was to understand how industrial buyers utilize social media in the purchasing of knowledge-intensive business services. By combining theories from past research a theoretical framework was formed to visualize the role of the social media at the different stages of the purchasing process. The subject was approached from the industrial buyers’ perspective instead of the knowledge-intensive business firm. The research was conducted using two qualitative research methods: interviews and netnography. The selected interviewees have been involved in the decision-making unit for purchasing knowledge-intensive business services. Additionally all of them are using various social media. Based on the interviews social media is used merely to support decision-making. Some of the interviewees had also shared their own experiences about the service and collaboration with the service provider with other social media users. Based on the interviews two social media were chosen for closer examination. The findings from netnography support the results from the interviews. The outcome of knowledgeintensive business services is dependable of the professionals. Therefore the information is used during decision-making process to confirm the formed image of the service, and the professionals of the service provider. Information obtained from social media complements information provided by the supplier. Even though the interviewees had not themselves used social media to find information about the service during search process, finding from netnography suggest it to exist. Industrial buyers ask other users’ opinions and experience about the services, and receive recommendations to them. Some recommendations are given publicly, but more discreet information is shared in private conversations. Observations in social media show that industrial buyers might be exposed to triggers to promote problem recognition as well. Companies share news and successful customer cases through their social media profiles, which might affect the industrial buyers, but to confirm this requires further research. The industrial buyers’ use of social media during different purchasing processes of knowledgeintensive business services can be conceptualize based on the findings. This helps companies to create right content to their social media pages, and encourage professionals to develop their networks in social media.

Automated Purchase to Pay Process Value Modeling and Comparative Process Speeds

The importance of efficient supply chain management has increased due to globalization and the blurring of organizational boundaries. Various supply chain management technologies have been identified to drive organizational profitability and financial performance. Organizations have historically been concentrating heavily on the flow of goods and services, while less attention has been dedicated to the flow of money. While supply chains are becoming more transparent and automated, new opportunities for financial supply chain management have emerged through information technology solutions and comprehensive financial supply chain management strategies. This research concentrates on the end part of the purchasing process which is the handling of invoices. Efficient invoice processing can have an impact on organizations working capital management and thus provide companies with better readiness to face the challenges related to cash management. Leveraging a process mining solution the aim of this research was to examine the automated invoice handling process of four different organizations. The invoice data was collected from each organizations invoice processing system. The sample included all the invoices organizations had processed during the year 2012. The main objective was to find out whether e-invoices are faster to process in an automated invoice processing solution than scanned invoices (post entry into invoice processing solution). Other objectives included looking into the longest lead times between process steps and the impact of manual process steps on cycle time. Processing of invoices from maverick purchases was also examined. Based on the results of the research and previous literature on the subject, suggestions for improving the process were proposed. The results of the research indicate that scanned invoices were processed faster than e-invoices. This is mostly due to the more complex processing of e-invoices. It should be noted however that the manual tasks related to turning a paper invoice into electronic format through scanning are ignored in this research. The transitions with the longest lead times in the invoice handling process included both pre-automated steps as well as manual steps performed by humans. When the most common manual steps were examined in more detail, it was clear that these steps had a prolonging impact on the process. Regarding invoices from maverick purchases the evidence shows that these invoices were slower to process than invoices from purchases conducted through e-procurement systems and from preferred suppliers. Suggestions on how to improve the process included: increasing invoice matching, reducing of manual steps and leveraging of different value added services such as invoice validation service, mobile solutions and supply chain financing services. For companies that have already reaped all the process efficiencies the next step is to engage in collaborative financial supply chain management strategies that can benefit the whole supply chain.

Organisational purchasing of service design – Agency and client perspectives

There has been an increase in the interest in service design, as companies have become more customer-centric and their focus has shifted to customer experiences. The actual organisational purchasing of service design has been given little attention, until recent years. The purpose of this study is to explore the purchasing of service design from the perspectives of sellers (service design agencies) and buying clients (business organisations). In order to understand the phenomenon, also agencies and clients’ approaches to service design discipline, purchasing processes, challenges related to purchasing and ways of facilitating the purchasing are explored. The research follows qualitative research method and utilises abductive reasoning. A proposition framework was formed by combining services marketing, design and organisational buying behaviour literatures, and was tested against real-life business cases. Empirical data was gathered by interviewing eight service design agency representatives and five client representatives in Finland. The results of semi-structural interviews were analysed by finding repetitive themes. The proposition framework was updated according to interview findings. There were both similarities and differences in service design agencies and clients’ approaches to service design. Service design represents a strategic activity to both parties, and it helps in clients’ business development and in discovering opportunities. It is an ideology; a way of thinking and working. The driving force for purchasing service design seemed to be something else than service design itself. Projects have been bought for 1) change and innovation related development, 2) channel related development or for 3) customer experience related development. Seven purchasing challenge themes were recognised: 1) poor or differing service design understanding, 2) selling of service design, 3) varying expectations, 4) difficulty of pre-evaluation, 5) buyers and buying companies, 6) project process and nature and 7) unclear project results. These all can be considered to cause challenges in organisational service design purchasing. Challenges can be caused by either participant, the agency or the client, and take place at any point of the purchasing process. Some of the challenges could be considered as barriers to purchasing or they play a role in an unsuccessful service project – and therefore, result in an unsuccessful organisational purchase. Purchasing could be facilitated in various ways by either participant; some ways are more attitude based, others actionable improvements. Thesis’s theoretical and managerial findings can be utilised to both improve the selling and purchasing of service design services.

Avaliação do impacto da contratação pública eletrónica na eficiência do processo de compras do Hospital Distrital de Santarém

Mestrado em Intervenção Sócio-Organizacional na Saúde. Área de especialização: Políticas de Administração e Gestão de Serviços de Saúde.

How to manage a virtual library?

Introduction. The Andalusian Public Health System Virtual Library (Biblioteca Virtual del Sistema Sanitario Público de Andalucía, BV-SSPA) was created in June 2006, after being determined by the II Quality Plan in the key process Guarantee the Knowledge Exchange into the Health System which was established by the Strategy IV, Knowledge Management, 2005-2008. It is a government strategy with its own budget and management with the aim of rationalizing the subscriptions into the Andalusian Health System and democratizing the health professional access to qualify scientific information, regardless of the professional workplace. Andalusia is a wide region with more than 8 million inhabitants, more than 90,000 health professionals for 41 hospitals, 1,500 primary healthcare centres, and 12 centres for non-medical attention purposes, and the Virtual Library was created to cover all this Health Services. Before the creation of the BV-SSPA every centre had its own budget and management decisions concerning scientific resources, with the creation of the BV-SSPA both management and budget were centralized. Objectives. With this work we pretend to analyze if the results after these five years have reached the expectations from an economic point of view and determine if really we can offer a benefit to the Andalusian Professional and Society in general. We will demonstrate the following: - The BV-SSPA supposed a cost reduction. It meant cost-effectiveness. - It resulted in Economics of Scale, as we have every year more resources and services investing a minor proportional amount of money. - In terms of Efficiency it implemented more services than the System had before its creation, we a lower budget. Methods. The BV-SSPA was appointed the only intermediary for contracting electronic resources destined to the Andalusian Health System. This had some consequences which should be analyzed: - Hospitals were not allowed to subscribe any resources. - Services offered for the whole System. - A remote access system was created. - Tools to give more visibility to the Public Health System were developed. - Negotiations techniques changed as the BV-SSPA is stronger than individual hospitals. Results. - The amount of 2,431 electronic reviews, 8 data bases and other scientific information resources at the disposal of the Andalusian Health System Professionals and available worldwide requiring only an internet connection. Before the BV-SSPA, 5,267 titles were subscribed by hospital and 2,967 of them were subscribed repeatedly (by two or more hospitals), this represented more than 55%. The rationalization of the subscription investment has been reached. - The establishment of several important scientific services for the whole territory of Andalusia, not only big hospitals. - The use of appropriate tools through a Web 2.0 and Social Media to be acknowledged by most National Health Professionals. Conclusions. It has been demonstrated that the BV-SSPA has become the Central Unit for purchasing, offering librarian services and a reference for users in terms of knowledge management, but from the point of view of business it has also obtained the following results: - Cost-Effectiveness: Its budget for subscriptions is lower than the hospital former one in a 30% and now more electronic resources are available. - Economics of Scale: Near 95,000 health professionals can access this Virtual Library in 2010. Before its creation Professionals for small hospital and Primary Care centres were not able to access to scientific information subscribed by big hospitals. - Efficiency Besides the central electronic purchasing, services were created for the System, without increasing the expenses: - Remote access to all the library resources independent of the user’s location. The BV-SSPA usage increased in a 147% in 2008, when it was installed. - The Document Supply Service implemented in 2009. - The Institutional Repository which contains the whole intellectual, scientific production generated by the Andalusian Public Health Professionals as a result of their healthcare, research or managing activity. - The creation of an application developed by the BV-SSPA to study the Andalusian Health System Scientific Production. - The visibility of the Andalusian Health System reached thanks to the BV-SSPA, through the numerous events in which it participates and organizes such as the 2nd. European National Digital Libraries of Health Conferences and the National Conference of Health Science Information and Documentation held in Cadiz in 2010; and its profile in social media where it can be contacted by citizens and health professionals all over the world. - Negotiation with electronic resource suppliers is much more advantageous as the BV-SSPA is stronger to deal with them thanks to its consolidated budget, its managing independence and its visibility.

Issue review : Iowa's expenditure limitation process.

This issue review provides a review of Iowa's expenditure law and recent statutory and session-law changes that have changed the process. This issue review also includes examples from the fiscal year 2013 budget enacted during the 2012 legislative session to help explain how the various aspects of the expenditure limitation law are applied to legislative decision making. At the end of this issue review is a schematic showing the distribution of fiscal year 2012 general fund surplus revenues when the expenditure limitation provisions are applied.

Asiantuntijapalvelujen markkinoinnin tehostaminen tuotteistamisen avulla

Työn tavoitteena oli selvittää asiantuntijapalvelujen tuotteistamisen mahdollisuuksia näiden palvelujen markkinoinnin tehostamisessa. Kirjallisuuden avulla selvitettiin ensin asiantuntijapalvelujen ominaispiirteet ja palvelujen tuotteistamisprosessi sekä siihen liittyvä palvelutuotteen rakentaminen. Selvitystyön pohjalta rakennettiin palvelujen asiakaslähtöinen tuotteistamisprosessi. Työn empiiristä osaa varten kerättiin tutkimusaineisto haastattelemalla sekä yrityksen asiakkaita että omia asiantuntijoita. Tutkimusaineiston analysoinnin perusteella segmentoitiin asiantuntijapalveluja ostavat asiakkaat. Asiantuntijapalvelujen ostamista ovat rajoittaneet sekä palvelujen epäonnistunut asemointi asiakkaiden keskuudessa että ilman markkinoinnillisia tavoitteita suoritettu tuotteistamisprosessi. Toimenpide-ehdotuksena esitetään asiantuntijapalvelujen uudelleenasemointia siten, että palvelujen ominaispiirteiden vaikutukset asiakkaiden mielikuvaan palvelutuotteista huomioidaan. Lisäksi asiantuntijapalvelujen tuotteistamista on kussakin asiakassegmentissä jatkettava tutkimuksessa selvitettyjen asiakastarpeiden pohjalta. Asiantuntijapalvelujen tuotteistamisessa on kussakin segmentissä omat tavoitteensa, jotka on huomioitava, jotta tuotteistamistoimenpiteillä olisi asiantuntijapalvelujen markkinointia tehostava vaikutus.