The aim of this paper is to present current and future
procedures in castings procurement. Differences in procurement are
highlighted. The supplier selection criteria used in practice is
compared to literature findings. Different trends related to supply
chains are presented and it is described how they are reflected in
reality to castings procurement. To fulfil the aim, interviews were
conducted in nine companies using castings. It was found that largest
casting users have the most subcontractor foundries and it is more
typical that they have multiple suppliers for the same parts. Currently
only two companies out of nine purchase castings outside Europe,
but the others are also progressing in the same direction. The main
reason is the need to lower purchasing costs. Another trend is that all
companies want to buy cast components or sub-assemblies instead of
raw castings from foundries. It was found that price is a main
supplier selection criterion. All companies use competitive bidding in
supplier selection.
[1] J. Palokangas, "Status and Scenarios of Technology Industries (In
Finnish Teknologiateollisuuden tilanne ja näkymät)," in Seminar of
Castings Use, Finland, April 12 - 13, 2007.
[2] B. Johnson and L. Burke, Educational Research: Quantitative,
Qualitative, and Mixed Approaches. Boston: Allyn & Bacon, 2004.
[3] P. Töttö, "Beyond qualitative and quantitative research? Methodpolitical
discussion (In Finnish "Kvalitatiivisen ja kvantitatiivisen tuolle
puolelle? Metodipoliittinen puheenvuoro")," Sosiologia, vol 36, pp. 280-
292, 1999.
[4] H. Hernesniemi, Successful subcontractor 2015: Vision and actions (In
Finnish Menestyvä alihankkija 2015: Visio ja toimenpiteet). Finland:
Teknologiateollisuus ry, 2007.
[5] F. von Corswant and P. Fredriksson, "Sourcing trends in the car
industry: a survey of car manufacturers- and suppliers- strategies and
relations," International Journal of Operations & Production
Management, vol 22, pp. 741-758, 2002.
[6] D.M. Lambert and M.C. Cooper, "Issues in Supply Chain Management,"
Industrial Marketing Management, vol 29, pp. 65-83, 2000.
[7] K. Kemppainen and A.J.P. Vepsäläinen, "Trends in industrial supply
chains and networks," International Journal of Physical Distribution &
Logistics Management, vol 33, pp. 701-719, 2003.
[8] P. Kraljic, "Purchasing must become supply management," Harvard
Business Review, pp. 109-117, September-October 1983.
[9] L. de Boer., E. Labro and P. Morlacchi, "A review of methods
supporting supplier selection," European Journal of Purchasing and
Supply Management, vol 7, pp. 75-89, 2001.
[10] C.A. Weber, J.R. Current and W.C. Benton, "Vendor selection criteria
and methods," European Journal of Operational Research, vol 50, pp.
2-18, 1991.
[11] V.H. Pooler and D.J. Pooler, Purchasing and supply management:
creating the vision. United States of America: Chapman & Hall, 1997.
[12] P.K. Humphreys, Y.K. Wong and F.T.S, "Integrating environmental
criteria into the supplier selection process," Journal of Materials
Processing Technology, vol 138, pp. 349-356, 2003.
[13] R. Verma and M.E. Pullman, "An analysis of the supplier selection
process," Omega, International Journal of Management Science, vol 26,
pp. 739-750, 1998.
[14] D.W. Dobler and D.N. Burt, Purcasing and supply management: text
and cases. McGraw-Hill Companies, Inc., 1996.
[1] J. Palokangas, "Status and Scenarios of Technology Industries (In
Finnish Teknologiateollisuuden tilanne ja näkymät)," in Seminar of
Castings Use, Finland, April 12 - 13, 2007.
[2] B. Johnson and L. Burke, Educational Research: Quantitative,
Qualitative, and Mixed Approaches. Boston: Allyn & Bacon, 2004.
[3] P. Töttö, "Beyond qualitative and quantitative research? Methodpolitical
discussion (In Finnish "Kvalitatiivisen ja kvantitatiivisen tuolle
puolelle? Metodipoliittinen puheenvuoro")," Sosiologia, vol 36, pp. 280-
292, 1999.
[4] H. Hernesniemi, Successful subcontractor 2015: Vision and actions (In
Finnish Menestyvä alihankkija 2015: Visio ja toimenpiteet). Finland:
Teknologiateollisuus ry, 2007.
[5] F. von Corswant and P. Fredriksson, "Sourcing trends in the car
industry: a survey of car manufacturers- and suppliers- strategies and
relations," International Journal of Operations & Production
Management, vol 22, pp. 741-758, 2002.
[6] D.M. Lambert and M.C. Cooper, "Issues in Supply Chain Management,"
Industrial Marketing Management, vol 29, pp. 65-83, 2000.
[7] K. Kemppainen and A.J.P. Vepsäläinen, "Trends in industrial supply
chains and networks," International Journal of Physical Distribution &
Logistics Management, vol 33, pp. 701-719, 2003.
[8] P. Kraljic, "Purchasing must become supply management," Harvard
Business Review, pp. 109-117, September-October 1983.
[9] L. de Boer., E. Labro and P. Morlacchi, "A review of methods
supporting supplier selection," European Journal of Purchasing and
Supply Management, vol 7, pp. 75-89, 2001.
[10] C.A. Weber, J.R. Current and W.C. Benton, "Vendor selection criteria
and methods," European Journal of Operational Research, vol 50, pp.
2-18, 1991.
[11] V.H. Pooler and D.J. Pooler, Purchasing and supply management:
creating the vision. United States of America: Chapman & Hall, 1997.
[12] P.K. Humphreys, Y.K. Wong and F.T.S, "Integrating environmental
criteria into the supplier selection process," Journal of Materials
Processing Technology, vol 138, pp. 349-356, 2003.
[13] R. Verma and M.E. Pullman, "An analysis of the supplier selection
process," Omega, International Journal of Management Science, vol 26,
pp. 739-750, 1998.
[14] D.W. Dobler and D.N. Burt, Purcasing and supply management: text
and cases. McGraw-Hill Companies, Inc., 1996.
@article{"International Journal of Business, Human and Social Sciences:61149", author = "T. Saarelainen and O. Piha and J. Orkas and P. E. Makkonen", title = "Issues in Procurement of Castings", abstract = "The aim of this paper is to present current and future
procedures in castings procurement. Differences in procurement are
highlighted. The supplier selection criteria used in practice is
compared to literature findings. Different trends related to supply
chains are presented and it is described how they are reflected in
reality to castings procurement. To fulfil the aim, interviews were
conducted in nine companies using castings. It was found that largest
casting users have the most subcontractor foundries and it is more
typical that they have multiple suppliers for the same parts. Currently
only two companies out of nine purchase castings outside Europe,
but the others are also progressing in the same direction. The main
reason is the need to lower purchasing costs. Another trend is that all
companies want to buy cast components or sub-assemblies instead of
raw castings from foundries. It was found that price is a main
supplier selection criterion. All companies use competitive bidding in
supplier selection.", keywords = "Casting, interview study, procurement, supplytrends.", volume = "2", number = "4", pages = "362-6", }