Managing the procurement process during scale-up: A case study of a European Battery Manufacturer

Abstract: The European battery market is in rapid growth and the industry actors are ramping up production as well as exploring international expansion opportunities. However, due to the relative novelty of the industry in Europe, there is a lack of benchmark companies and established frameworks for successful expansion. Existing studies in this field primarily focus on strategic solutions such as sourcing strategies and supplier relationship management, neglecting the utilization of supporting operative functions. Although some studies acknowledge the significance of these supporting functions, there is a lack of research providing models for their utilization. This research gap motivates the aim of this study to address this issue and contribute to the existing literature. The purpose of this study is to develop a comprehensive and adaptable expansion strategy that European battery manufacturers can employ when expanding their production facilities, while ensuring a high-quality procurement function. This was met by collecting qualitative data through interviews. The interviews were primarily with respondents from the case company, supplemented by inputs from relevant external participants. By conducting a case study focusedon the procurement department, valuable insights were gained, and the identified expansion strategy can serve as a valuable resource for industry practitioners. The main finding of this research is the battery manufacturers need for a structured expansion step model that outlines both the execution steps and their sequential order. The steps of the framework are: (1) Assure Management Support, (2) Create a Dedicated Expansion Team, (3) Adjust & Consolidate Systems, (4) Define Roles & Responsibilities, (5) Train & Incentives Employees, (6) Control Access Management, (7) Create & Maintain Master Data, and lastly, (8) Initial Supplier Contact.