Purchase-to-pay - Degree of centralization in multinational B2B corporation
Kiiski, Vili-Valtteri (2014)
2014
Kuvaus
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Tiivistelmä
This master’s thesis sheds light on purchase-to-pay processes and their centralization in multinational corporations. In some business areas, purchasing volume can sum up to 60% of the corporation’s total revenue, yet a clear gap in academic literature regarding operational purchasing can be recognized. This study identifies factors influencing on centralization of purchasing department by developing a literature framework for the empirical study. Later on, qualitative and small-scale quantitative researches are con-ducted in order to test the relevance of the framework on purchase-to-pay process con-text in a case organization and to identify main differences. Moreover, current centrali-zation and efficiency levels of global purchase-to-pay processes in the case organization are identified and managerial implications are given. Purchase-to-pay processes included in this study are invoice handling process, claim handling process, demand planning process, ordering process, and raw material data management process.
Case organization is a Finnish multinational corporation with sales of 1 200 million Euros in 2012. Organization has production sites in more than 10 countries on all five continents and altogether more than 2800 employees. Empirical study contained 14 semi-structured interviews with interviewees from eight countries and all organizational levels. Findings show that developed framework indeed can be utilized in purchase-to-pay context. However, a few changes to factors presented by literature are required. Altogether, 14 factors influencing on centralization of purchase-to-pay processes’ were identified and divided to four categories namely external factors, purchase situational factors, product characteristics and multinational corporation specific characteristics. With help of recognized differences, an updated framework of factors influencing on centralization degree of purchase-to-pay processes is developed in this study.
Case organization is a Finnish multinational corporation with sales of 1 200 million Euros in 2012. Organization has production sites in more than 10 countries on all five continents and altogether more than 2800 employees. Empirical study contained 14 semi-structured interviews with interviewees from eight countries and all organizational levels. Findings show that developed framework indeed can be utilized in purchase-to-pay context. However, a few changes to factors presented by literature are required. Altogether, 14 factors influencing on centralization of purchase-to-pay processes’ were identified and divided to four categories namely external factors, purchase situational factors, product characteristics and multinational corporation specific characteristics. With help of recognized differences, an updated framework of factors influencing on centralization degree of purchase-to-pay processes is developed in this study.