Managing external risks with E-procurement solutions for Swiss SME machine manufacturers sourcing in Asia
SONAR|HES-SO
- Genève : Haute école de gestion de Genève
120 p.
Bachelor of Sciences HES in International Business Management: Haute école de gestion de Genève, 2023
English
Can the machine manufacturing (MM) sector, with an annual Swiss export value of CHF 21 billion, successfully navigate risks arising in Asia? More than 1900 small and medium-sized enterprises (SMEs) account for 97% of the total number of companies and more than 40,000 jobs in the MM sector. Procurement for these SMEs is becoming increasingly complex as global markets tighten and prices rise. Risks that can occur along the procurement process should be incorporated into procurement processes to make them more resilient to unexpected events and more adaptable to new circumstances. Adopting new technologies in procurement could be a solution to manage all these risks.
The study aims to identify the benefits and limitations of E-procurement as a potential risk management solution for Swiss SMEs in the machinery manufacturing sector. The focus was on the Asian procurement market. A thorough evaluation of the current publicly available literature was complemented by primary data obtained through interviews, a survey of 20 Swiss SME machine manufacturers, and data from reputable statistical websites.
Primary research among SME machinery manufacturers identified price-increases and product-availability as the main challenges. While risk-aware and more knowledgeable companies showed higher risk management, micro-enterprises and SMEs with long-established supplier relationships showed no or little risk management strategies. The research revealed a low dependency on the Asian procurement market and much higher dependency on Europe in the machine manufacturing sector. In SMEs, E-procurement is carried out through ERP systems developed in Switzerland and Germany with few software features.
The study concludes that a risk management strategy not only benefits procurement, but also has a positive impact on the financial situation of Swiss SME MMs. Why a significant number of companies without a risk management strategy do not consider it important is still unclear. In addition, it has been shown that medium-sized and structured companies are able to partially manage risks, while smaller companies are only able to manage a few risks through E-procurement systems. Despite this potential, the current lack of digital understanding, IT skills and data management expertise hinders the effective use of E-procurement to manage risk and to achieve greater transparency, visibility and collaboration. Will the digital transformation and employee training for Swiss SME MM be the key to overcome these limitations in the future?
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Language
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Classification
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Economics
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Notes
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- Haute école de gestion Genève
- International Business Management
- hesso:hegge
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Persistent URL
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https://sonar.ch/global/documents/327711