Signed, sealed, delivered - and beyond: A case study of how different supplier relationships are evaluated.

Abstract: Supplier accounting is an area within management control that has been subject to research during the past years. This thesis develops a framework to explain what supplier accounting techniques are used in different relationships based on their supplier resource interfaces. Four different supplier relationships have been identified each with its own supplier accounting technique. Transactional supplier relationships with low technical and organizational interfaces are associated with supplier segment cost analysis. Facilitative supplier relationships with low technical and high organizational interfaces are associated with total cost of exchange analysis. Integrative supplier relationships with high technical and organizational interfaces are associated with total cost of ownership analysis. Connective supplier relationships with high technical and low organizational interfaces are associated with total connective cost of ownership analysis. An explorative case study of the automotive restraint company Autoliv has been conducted which supports the framework developed. However, the empirical results are not without ambiguity and provide a more complex picture of how supplier accounting techniques are related to a company’s resource interfaces. Empirical data has been gathered through qualitative interviews with managers responsible for different supplier relationships, and internal documents on supplier management. The conclusion is that different accounting techniques are used depending on the relationship however more variables are important determinants of the supplier-accounting technique used. With this thesis we aim to bring a deeper understanding of what different supplier accounting techniques are used in this particular case.