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Supply base management has become increasingly more interesting subject in supply chain research lately. Both theory and practice have identified that efficient management of the supplier base incorporates a lot of potential for cost savings. Consolidated order vol-umes, supplier development and supplier consolidation are ways to achieve strategic objec-tives which aim for cost efficiency. By measuring suppliers and analyzing the measurement data, we can compare suppliers’ performance against each other. The goal of this study is to identify relevant supplier characteristics that purchasing com-pany could use to measure, analyze and develop its suppliers. As a concrete solution, a supplier scorecard is developed in this study. As a part of this study, a literature review was conducted. Focus was on supplier portfolio management and representing industrial spare part business dimensions. It became obvi-ous, that there is clear lack of studies that would thoroughly focus on companies providing spare parts and on supplier management in those companies. As a result from the review, a list of relevant supplier characteristics was obtained, and they were divided according to dif-ferent features of the spare part business. Results highlighted the strong role of communi-cation in easing the uncertainty, importance of commitment in understanding the logic of spare part business and making the traditional measurement systems more versatile to lessen the role of cost. In the empirical part, ten people were interviewed to collect the empirical data. Interview themes were connected to supplier characteristics and metrics. Interviews were discussive and the subject was lead with open-ended questions, case examples and pair-wise comparison. Answers highlighted the importance of delivery performance and problems caused by it. Also, the role of communication in dealing with everyday issues and in enabling more strategic development projects was stressed out. Elements that were connected to price and delivery performance turned out to be the most important metrics. From the empirical data, supplier characteristics were combined with suitable metrics and support for develop-ing the metrics was sought from theory findings as well. Result of the study indicated that the supplier characteristics in spare part business have a dominating emphasis on communication. Due to large amount of uncertainty, communicative actions were seen to have the greatest impact on maintaining good levels of delivery performance, informing the supplier about the features of the spare part business and enabling supplier flexibility. Still, traditional characteristics, cost and delivery performance, were heavily stressed in metrics and different dimensions of those two were majorly measured and analyzed. Through this emphasis, a supplier scorecard was built. The scorecard was built from the metrics defined in the empirical study and yet again supported by a rating system that was weighted according to the findings and managerial preferences. |
