Integrating Purchasing and Logistics : An exploratory study of the wholesaling companies The Body Shop, Hälsokostcentralen (HKC), Mekonomen, Elgiganten and ICA

Abstract: Two of the most important internal functions within a company, which have gained increased importance, are purchasing and logistics. Purchasing and logistics both contribute to the competitiveness of an organisation by conducting different value adding activities separately. There is also a huge potential for increased benefits if a high degree of integration exists between the two functions. Although there is evidence that purchasing and logistics have been working closely together historically, the operational focus of logistics and the commercial focus of purchasing have created a tension between the two functions. It has been shown that some purchasing managers mostly have been committed to reducing the price. The logistics function has as a cause of this sometimes been forced to deal with late deliveries and inferior quality from suppliers. To manage the interface activities between the functions is crucial in order to able to achieve integration. Purchasing and logistics functions are of major importance within wholesaling companies because they are considered as core internal functions. This study has been conducted at the wholesaling companies The Body Shop, Hälsokostcentralen (HKC), Mekonomen, Elgiganten and ICA. Research questions: § What activities exist within the purchasing and logistics function at the specific wholesaling companies and which of these activities are integrated? § What are the factors that influence the integration between the purchasing and logistics functions and how do these factors hinder or enable the integration? Purpose: Initially this thesis aims to identify what activities that exist and which of them that are integrated between the purchasing and logistics functions within the wholesaling companies The Body Shop, HKC, Mekonomen, Elgiganten and ICA. Furthermore the purpose is to identify what factors that influence the integration between the purchasing and logistics function in these companies and also explain how these factors hinder and enable the integration.