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Supplier Base Reduction

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Supplier Base Reduction
Department of Industrial Management and Logistics Division of Engineering Logistics

Planning for Supplier Base Reduction
- understanding Supplier Base Reduction’s role in purchasing
A case study at Alfa Laval AB

Authors

Fabian Karlsson Sebastian Eriksson-Ritzén

Supervisors

Ala Pazirandeh Markus Ekendahl

ii

Acknowledgements
This thesis completed our Master of Science in Mechanical Engineering with specialization in Logistics and Supply Chain Management at the Faculty of Engineering, Lund University. We initiated this study by expressing a wish to write our master thesis within purchasing at Alfa Laval. We would like to thank Alfa Laval for providing us with an office at their site in Lund and all the information needed to complete this study. We would also like to especially thank all the global purchasers and people at Operations Development who have been very supportive and a great company, both socially and professionally. Finally we would like to address the supervisors for the thesis; Ala Pazirandeh and Markus Ekendahl. Ala has continuously provided us with great feedback on our report writing and has really helped us to improve the report structure of this study. Markus has provided us with his personal network within Alfa Laval and has with his knowledge and experience within purchasing been a great inspiration for our future careers.

Lund, February 2011

Fabian Karlsson

Sebastian Eriksson-Ritzén

iii

Abstract
Title: Planning for Supplier Base Reduction - understanding Supplier Base Reduction’s role in purchasing. A case study at Alfa Laval AB Fabian Karlsson and Sebastian Eriksson-Ritzén Ala Pazirandeh, Department of Industrial Management and Logistics, Lund University Markus Ekendahl, Alfa Laval AB Background: Today individual businesses do not compete as isolated entities, but rather within supply chains. Lambert (2008) emphasizes the importance of relationship management in supply chain management which is also

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