Standardizing purchasing processes : Increasing purchasing efficiency for production process equipment at Höganäs Sweden AB

Abstract: Problem discussion: The execution of the purchasing process of production process equipment at Höganäs Sweden AB is believed to have an improvement potential. Increasing its efficiency and securing the quality of the purchasing process is therefore of large interest from the company’s point of view. The process’ completing is highly dependent on the experience and knowledge possessed by the persons that are connected to the purchases of production equipment items. The insecurity of the procedures and the possibilities of making mistakes are hence the main issues of concern. Purpose, objectives: The main purpose of this study is to standardize Höganäs’ purchasing process of production process equipment to reach a better purchasing efficiency. The objective of the standardization is partly to ensure that purchasing is done in a consistent and good way. Partly it should also ensure that everybody involved in the process know what has been done, that this has been done correctly, and know what there is left to do. Method: The methodology of the research builds upon the constructive approach, which is an approach suitable for defining a problem and constructing a solution to it that improve a prevailing system, process and performance. The idea of the solution has been constructed by the means of a single-case study wherein interviews has been the main source of information. Conclusions: It has been concluded that the case company has many efficiency improvement potentials if a process standardization of the purchasing process of production process equipment is implemented. Suggestions for what the standardized processes can look like with strategic implications from a portfolio model are provided, together with benefits explicitly connected to those.