This thesis is made as a project for Teleste Oyj, an information technology manufacturer that resides in Turku, Finland. The purpose of this thesis is to study the procurement process of a case company, Teleste and find ways that both the inventory levels and purchasing efficiency could be improved
The theoretical framework presents a view into the theoretical models of modern purchasing and inventory management principles that are used to create models for inventory management. How are key figures calculated in inventory and item classification methods are introduced. Automating business processes and the risks, requirements and benefits of automation finalize the theory framework. The empirical research is an implementation of an XYZ-analysis extension for Telestes current ABC -analysis. In this research a years’ worth of inventory requirements from six selected suppliers are analyzed to create an ABC-XYZ matrix that is refined to a set of inventory management rules.
Based on the ABC-XYZ analysis results and basing on the created matrix of rules, a proposal for an automated process with system suggestions is presented in the final empirical chapter of the thesis. The automation system bases on the idea that low value items that have low amount of fluctuation in their production demand can be automated to reduce the purchasing workforces amount of tedious number work. The thesis concludes on the idea that Teleste has the capabilities to implement an automated system basing on their current system capability, but it requires building new processes and purchasing or building a new supplier system to fulfill the proposed workflow. The ABC-XYZ matrix, ABCD-123- matrix for Teleste, can be implemented as such as a tool for sourcing and purchasing teams to improve control of resources and understanding the nature of different item demand
