Developing a Procurement and Supplier Classification Model for Civil Aviation Engine Maintenance, Repail and Overhaul. Case X

Abstract

The purpose of this research is to develop a procurement and supplier classification model for the case company, X. At the first phase of the thesis, primary research in the form of personnel interviews was planned and implemented to understand the situation at the case company. Simultaneously, secondary research was carried out to support the implementation of the interviews as well as to build the theoretical framework for this thesis. Secondary research was employed to discover the theoretical background related to procurement and supplier classification analyses. There are a number of methods for analyzing businesses. However, the methods used in this thesis were the spend analysis, Kraljic’s portfolio analysis and the ABC analysis, which ranks a group of selected items, for example, spare parts according to the volume of purchasing in terms of money. At the second phase of the thesis, all discoveries from phase 1 were employed to analyze the purchasing statistics and develop a classification model suitable for the case company. Thus, the theoretical learnings and the interview results were integrated with the analyses of the purchasing statistics of direct procurement for 2017-2018 to develop a procurement and supplier classification model. At the third phase of the research, the key results from phases 1 and 2 of the thesis were emphasized. These results were further assessed to evaluate their validity and reliability. Finally, all findings from phases 1, 2 and 3 were combined to offer recommendations to the case company. The recommendations focus was on improving the procurement operation of the case company in terms of direct purchasing through the classification of procurement and supplier