eThesis - School of Business electronic theses

Objectives: This study examines the usefulness of purchasing portfolio analysis in creating purchasing strategies and their impact to the performance of purchasing categories. The importance of purchasing and supply management has grown in the recent decades and companies have started to recognize the importance of purchasing function. In addition the role of purchasing function in Finnish companies is researched in this thesis and the purchasing functions involvement in the corporate strategic planning process. This study aims to address the research gaps related topics identified above, but at the same time provide managerially significant information for procurement professionals.

Research method: The study is based on data that is of quantitative nature (received from the International Purchasing Survey) therefore quantitative study approach was selected. Consequently statistical data analysis was used. Study is based on survey results for year 2009.

Results: The main results of this study comprise of two findings. First finding is that the purchasing portfolio analysis continues to be one of the most used tools by purchasing professionals and also Finnish companies use it actively, yet the benefits of the use have not been able to prove scientifically and this study was not able to prove it either. Second finding is that the role of purchasing function in Finnish companies does not seem to be very strategic in nature. When compared to American companies’ role and their involvement in the corporate strategic planning process, the Finnish companies seem to be lagging behind.