Procurement Process Integration (PPI) in Swedish and Ukrainian Companies Producing Machinery and Equipment : Comparison in terms of the level of integration, the tools of integration and the barriers to integration from buyers’ perspective

Abstract: Business Administration, Business Process & Supply Chain Management, Degree Project (Master), 30 higher education credits, 5FE02E, Spring 2012   Authors: Kateryna Zubova and Olga Arikainen   Tutor: Åsa Gustavsson Title: Procurement Process Integration in Swedish and Ukrainian Companies Producing Machinery and Equipment Background: Although the science of economics and logistics comprises a great amount of literature on supply chain integration, there is a lack of information on procurement process integration. Procurement process is one the supply chain processes and is one of the most important processes for manufacturing companies. Purpose: To describe the level of procurement process integration (PPI), tools of PPI and barriers to PPI from buyers’ perspective in Swedish and Ukrainian companies producing machinery and equipment, and then to test if there is a significant difference in them between respondents of two countries. Method: Web-based questionnaire was created and sent out to 500 companies producing machinery and equipment in Sweden and to 500 companies in Ukraine.  73 responses were received from Swedish companies and 49 responses from Ukrainian companies. T-test was performed in order to test the differences in procurement process integration between Swedish and Ukrainian companies in terms of levels of integration, tools of integration and barriers to integration. Results, conclusions: There is no significant difference in the level of integration between Swedish and Ukrainian companies. In both countries the average level of integration is medium that means long-term relationships which are reviewed periodically. However, significant differences were found in the tools and barriers to procurement process integration between Swedish and Ukrainian companies.