Improving Sourcing Performance through Business Process Management

Sammanfattning

The supply chain comprises smaller, interconnected end-to-end processes that collectively handle all activities, from raw material extraction to delivering the finished product to customers. Sourcing is one of these processes, encompassing specification, tendering, and contracting. It has become evident that companies no longer compete solely in the market but throughout the entire supply chain. Changes in socio-economic and geopolitical factors, combined with a growing focus on sustainability, have revealed weaknesses in the supply chain, leading companies to regularly assess and improve their operations to maintain competitiveness. Academic research indicates that increased digitalization can be a strategy to address these weaknesses. However, its presence in the sourcing scene is juvenile and characterized by redundancies that can be improved. Consequently, this thesis conducted a case study at an international industrial company, examining the potential of emerging technologies in Industry 4.0, including the Internet of Things (IoT), Blockchain, and Artificial Intelligence (AI). This is achieved in conjunction with Business Process Management (BPM) theories to address these challenges and enhance the sourcing process. The BPM theories applied reflect the AS-IS state in the BPM lifecycle, encompassing the process identification, discovery, and analysis steps. To further enhance the analysis, a BPM maturity assessment is performed. Data for the theories is collected through interviews and a questionnaire, aiming to identify inefficiencies and opportunities for strategic alignment. Based on this, recommendations are provided for how the case company can improve its sourcing process to enhance its competitive performance, particularly through increased digitalization. To achieve a holistic perspective, it acknowledges the barriers and risks involved in transforming the sourcing process and assessing the feasibility of the recommendations