Pricing variables specification and effect on the total price contribution in subcontracting

Making cost-effective pricing and purchasing decisions in a fast-paced manufacturing environment and fitting them into tight project schedules is a challenge that bothers global companies around the industrial world. Therefore, actions to develop pricing accuracy in procurement are essential for companies to maintain the cutting edge in the industry. Procurement processes under review include partnerships and their desired effects on co-operating business between involved parties. Such desired effects are for example general cost level decrease without hurting margins. This thesis was assigned by a large-scale Finnish global operator and the task was to research, develop and examine previous pricing and purchasing transactions in a form of a case study. The thesis starts by reviewing the theory behind pricing, procurement and prefabrication. Afterwards, the theoretical study continues to research methods, which were pointed out to be important in this kind of study that doesn’t have many relevant publications produced from the same field of study available. Along with research found in the literature, several internal and external interviews were used to evaluate the topics and results. After assessing research methods, the actual active research process starts by introducing research data and digging deeper into its findings and analyses. The results are presented by visualizing the used methods and presenting graphs to clearly determine the consistency of the linear spread of multiple variables and their numeric values. The study was successful and answered the desired questions that had emerged in the assignment company. Based on the results, further recommendations regarding operating with key partners and how the pricing is developed more accurate and documented in a more comparable way are considered in the assignment company