Reducing Supplier Lead Time : - A case study on Supplier Lead Time at purchasing companies

University essay from Linnéuniversitetet/Institutionen för ekonomistyrning och logistik (ELO); Linnéuniversitetet/Institutionen för ekonomistyrning och logistik (ELO)

Abstract: Title: Reducing Supplier Lead time – a case study on Supplier Lead Time at purchasing companies Authors: Johanna Jönsson and Melinda Luong Tutor: Dr. Åsa Gustavsson Examiner: Dr. Lars-Olof Rask Course code: 4FE06E - Master Thesis _________________________________________________________________________ Research questions: ●  How are companies working with and defining Supplier Lead Time? ●  What activities are included to reduce Supplier Lead Time? ●  How can companies further develop their work to reduce Supplier Lead Time? Purpose: The purpose of this Master Thesis is to describe and explain how purchasing companies are working to reduce Supplier Lead Time, in order to maintain or achieve an efficient and flexible supply chain. Moreover the study aims to recommend what approaches companies could further use to reduce Supplier Lead time. Method: To answer these research questions the authors have done two case studies. The theoretical material has been collected and processed, which has formed the basis for the semi-structured interview guide that was answered by the interviewees. The authors also attended meetings to get other inputs about the subject. Conclusion: IKEA Components are today taking different actions to improve the SLT but can improve their volume agreements (AGV) by aligning all involved parts and have a functional leader that makes sure that they follow it up. At IKEA IMS the authors recommend them to work with volume commitments with suppliers and develop a clearer structure for who is responsible for improving the SLT and evaluating it. Keywords Supply chain management, Supplier Lead Time, Reducing Supplier Lead Time, Organization management, Performance evaluation

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