Sourcing strategies and supplier relationships : A comparative study of manufacturing companies in the Swedish construction and the white goods industries

Background: In manufacturing companies purchasing is a great part of the total cost and major suppliers have a decisive role for the company. Therefore it is important to emphasise the selection and relationship with these suppliers to make the organization profitable. Sourcing strategies and supplier relationships are the main elements of supplier management. Purpose: The main goal of this study is to underline the similarities and differences regarding sourcing strategies and supplier relationships among the manufacturers of the two industries in order to identify the best practices and possibilities for knowledge transfer. Methodology: This thesis is a descriptive comparative study that was conducted with a deductive approach. Data was collected by interviews of mainly purchasing managers of our studied companies, annual reports and web pages of the companies. The scientific credibility of this thesis was secured by using many sources and avoiding assumptions. Conclusions: Several similarities and differences have been found between the industries. Furthermore, both industries can learn from each other when it comes to the use of sourcing strategies and supplier relationships. Suggestions on future research: A more extensive study with more companies in each industry can be made to strengthen our conclusions. Furthermore, scenario simulations can be conducted for the supply of products and see how a manufacturing company can be affected