Outsourcing spare part inventory management in the paper industry : a case study on Edet paper mill
The paper industry is a large-scale processing industry where a continuous production, around the clock is necessary This means that it is necessary to carry an inventory of spare parts. This however comes with costs in the form of mainly cost of capital and handing costs. Inventory management is ab...
| Autor principal: | |
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| Formato: | H2 |
| Lenguaje: | Inglés sueco |
| Publicado: |
SLU/Dept. of Forest Economics
2019
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| Materias: |
| _version_ | 1855572450224373760 |
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| author | Skärberg, Erik |
| author_browse | Skärberg, Erik |
| author_facet | Skärberg, Erik |
| author_sort | Skärberg, Erik |
| collection | Epsilon Archive for Student Projects |
| description | The paper industry is a large-scale processing industry where a continuous production, around the clock is necessary This means that it is necessary to carry an inventory of spare parts. This however comes with costs in the form of mainly cost of capital and handing costs. Inventory management is about balancing the cost of keeping inventory and the service level to the production. This study explores the possibilities of outsourcing the spare part inventory management at a paper mill. The study is a case study that uses a mixed-method approach. The study finds that by outsourcing the spare part sourcing and inventory control to a third-party logistics provider (3PLP) potential cost savings can be reached primarily by a more streamlined re-stocking process and taking advantage of specialization, aggregation and economics of scale. The major motive behind outsourcing is saving costs and making sure that the company can focus on value-adding activities and its core-compentence. The items that are best suitable for an outsourcing solution is generic low-value items such as Tools, Utensils and Bearings. |
| format | H2 |
| id | RepoSLU14678 |
| institution | Swedish University of Agricultural Sciences |
| language | Inglés swe |
| publishDate | 2019 |
| publishDateSort | 2019 |
| publisher | SLU/Dept. of Forest Economics |
| publisherStr | SLU/Dept. of Forest Economics |
| record_format | eprints |
| spelling | RepoSLU146782019-07-02T01:02:00Z Outsourcing spare part inventory management in the paper industry : a case study on Edet paper mill Skärberg, Erik core competence KPI processing industry replacement parts restocking third party logistics The paper industry is a large-scale processing industry where a continuous production, around the clock is necessary This means that it is necessary to carry an inventory of spare parts. This however comes with costs in the form of mainly cost of capital and handing costs. Inventory management is about balancing the cost of keeping inventory and the service level to the production. This study explores the possibilities of outsourcing the spare part inventory management at a paper mill. The study is a case study that uses a mixed-method approach. The study finds that by outsourcing the spare part sourcing and inventory control to a third-party logistics provider (3PLP) potential cost savings can be reached primarily by a more streamlined re-stocking process and taking advantage of specialization, aggregation and economics of scale. The major motive behind outsourcing is saving costs and making sure that the company can focus on value-adding activities and its core-compentence. The items that are best suitable for an outsourcing solution is generic low-value items such as Tools, Utensils and Bearings. Pappersindustrin är en storskalig processindustri där ständig production dygnet runt är nödvändig. Detta innebär att det är nödvändigt med ett reservdelslager. Detta kommer dock med kostnader i form av främst kapital- och hanteringskostnad. Lagerhantering handlar om att balansera servicenivån till production och kostnaden för lagerhållningen. Detta arbete undersöker möjligheterna för en outsourcinglösning för reservdelshanteringen på ett pappersbruk. Arbetet är en fallstudie som använder sig av flermetodsforskning. Genom att outsourca reservdelsanskaffandet och dess lagerkontroll till ett tredjepartslogistikföretag kan potentiella kostnadsbesparing bli nådda genom främst en effektivare anskaffningsprocess. Detta genom att dra fördel av specialisering, aggregering och skalfördelar. Den stora anledningen till att pröva implementera en outsourcinglösning är kostnadsbesparingar och försäkra sig om att man kan ägna sig åt värdeadderande aktiviteter och fokusera på sin kärnverksamhet. Reservdelar mest lämpade för outsourcing är generiska delar av lågt värde såsom Verktyg, Förnödenheter och Hjullager. SLU/Dept. of Forest Economics 2019 H2 eng swe https://stud.epsilon.slu.se/14678/ |
| spellingShingle | core competence KPI processing industry replacement parts restocking third party logistics Skärberg, Erik Outsourcing spare part inventory management in the paper industry : a case study on Edet paper mill |
| title | Outsourcing spare part inventory management in the paper industry : a case study on Edet paper mill |
| title_full | Outsourcing spare part inventory management in the paper industry : a case study on Edet paper mill |
| title_fullStr | Outsourcing spare part inventory management in the paper industry : a case study on Edet paper mill |
| title_full_unstemmed | Outsourcing spare part inventory management in the paper industry : a case study on Edet paper mill |
| title_short | Outsourcing spare part inventory management in the paper industry : a case study on Edet paper mill |
| title_sort | outsourcing spare part inventory management in the paper industry : a case study on edet paper mill |
| topic | core competence KPI processing industry replacement parts restocking third party logistics |