Vitral Roof Glazing: Vitral Devlivery Performance - Supplier Collaboration

Sara Johanna Lindström, Peter Nygaard Sørensen & Morten Adamsen

Student thesis: Diploma thesis

Abstract

This thesis focuses on how the delivery performance of the company Vitral can be improved by using the theories behind collaboration. Vitral has an arbitrary KPI of a delivery performance of 95%. The current KPI is measured to be 81,55%. The study will only take the external stakeholders into account, more specific only the Danish suppliers. The thesis starts with creating a framework to help the company categorizing its current suppliers. The framework is built on the basis of Kraljic purchasing matrix. Other factors besides the two commonly used; impact on business and complexity in supplier marked, have been added to the framework. The factors have been added in order to help the decision-making process in Vitral so they can categorize their suppliers accordingly. The framework will help guide the decision process and insure that all the factors are taken into consideration, before deciding which of the suppliers will be suitable for starting a collaboration process. The second part of the analyses investigates how Vitral can determine whether a supplier is attractive to cooperate with or not. The research is done by the usage of relationship theories, and includes; trust in the relation, power dependency, and value driver. In the third part of the thesis, the factors are being described and their value weighted with the purpose of finding which supplier is the most relevant to Vitral, to start up a collaboration future with. In the fourth part, the maturity of Vitrals purchasing department is determined. Based on the level of maturity, the theories behind collaboration will be used to set up suggestions for new initiatives and an action plan to execute these initiatives. In conclusion, the new initiatives that Vitral should work on achieving, in order to improve their delivery performance is to move their purchasing department to stage 4 in the purchasing and supply development model. To achieve this, top management would need to see the purchasing department as a strategic element of the company. Vitral would have to hire a competent employee, that will be able to drive the changes needed forward. Once the purchasing department is ready, new initiatives could be started: ● Information Sharing, Vitral should be sharing their demand forecast and their sales forecast ● Incentive Alignment, willing to take higher risk, sharing the risk, and a more correct safety stock. ● Collaborative communication, greater involvement from top management from both companies. The stated involvement involves increased communication and decision making from both actors regarding the identified actions. The purpose being to improve Vitrals delivery performance through improved cooperation with its suppliers.

EducationsGraduate Diploma in Supply Chain Management, (Diploma Programme) Final Thesis
LanguageDanish
Publication date2018
Number of pages102