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1 INODCION........................................................................................................................................ 1

1.1 BACKGROUND............................................................................................................................................ 11.2 PURPOSE .................................................................................................................................................. 21.3 DEFINITION OF AN ACADEMIC REPORT...................................................... ....................................................... 21.4 THE SYSTEMS APPROACH.............................................................................................................................. 31.5 THE COMPOSITION OF THE REPORT............................................................ ..................................................... 4

2 CEDEOH AB ........................................................................................................................................ 5

2.1 HISTORY................................................................................................................................................... 52.2 ORGANIZATION.......................................................................................................................................... 62.3 PRODUCTION............................................................................................................................................. 72.4 LOGISTICS ................................................................................................................................................. 82.5 PURCHASING............................................................................................................................................. 8

2.5.1 MISSION AND VISION......................................................... ............................................................... ........... 83 HEOEICAL EIE ............................................................................................................................ 15

3.1 SUPPLIER SELECTION CRITERIA..................................................................................................................... 153.2 CRITERIA SELECTION.................................................................................................................................. 193.3 DEFINITIONS OF ENVIRONMENTAL PURCHASING................................................................ .............................. 273.4 PURCHASING AND THE ENVIRONMENT.......................................................................................................... 293.5 QUALITY MANAGEMENT AND ENVIRONMENTAL PURCHASING............................................................................ 44

3.6 WEIGHTING METHODS FOR SUPPLIER EVALUATION CRITERIA....................................................... ....................... 453.7 SUPPLIER INFORMATION COLLECTION....................................................... ..................................................... 483.8 SUPPLIER RATING...................................................................................................................................... 49

4 ECIFICAION OF HE AK .................................................................................................................. 53

4.1 PROBLEM IDENTIFICATION.......................................................................................................................... 534.2 PROBLEM DISCUSSION............................................................................................................................... 53

4.3 SYSTEM DESCRIPTION................................................................................................................................ 544.4 DEFINITION OF ENVIRONMENTAL PURCHASING............................................................................................... 554.5 PURPOSE BREAKDOWN.............................................................................................................................. 564.6 SUMMARY OF THE STUDYS QUESTIONS......................................................................................................... 604.7 DELIMITATIONS OF THE STUDY...................................................... ............................................................... 60

5 MEHODOLOG 63


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7.2 GENERAL CRITERIA.................................................................................................................................... 847.3 PRODUCTION CRITERIA............................................................................................................................... 85

7.4 QUALITY CRITERIA..................................................................................................................................... 877.5 LOGISTICS CRITERIA................................................................................................................................... 937.6 PRODUCT DEVELOPMENT CRITERIA............................................................................................................... 977.7 PURCHASING CRITERIA............................................................................................................................. 1027.8 ENVIRONMENTAL CRITERIA....................................................................................................................... 1077.9 CRITERIA INTERCONNECTIVITY................................................................................................................... 114

8 ANALI OF CIEIA EIGHING ..................................................................................................... 117

8.1 SELECTION OF WEIGHTING MODEL............................................................. ................................................. 1178.2 LIKERT SCALE DESIGN............................................................................................................................... 1188.3 WEIGHTING RESPONSIBILITY..................................................................................................................... 1198.4 WEIGHTING RESULTS............................................................................................................................... 121

9 ANALI OF LIE EALAION ................................................................................................... 125

9.1 SUPPLIER INFORMATION COLLECTION....................................................... ................................................... 125

9.2 SUPPLIER RATING.................................................. ............................................................... ................... 1269.3 CASE STUDIES........................................................................................................................................ 128

10 CONCLION AND ECOMMENDAION ........................................................................................... 135

10.1 PURPOSE FULFILLMENT............................................................................................................................ 13510.2 THE STRATEGIC SUPPLIER EVALUATION MODEL.................................................... .......................................... 13810.3 DIRECTIVES.............................................................. ............................................................... ............... 14110.4 SUGGESTIONS ON FUTURE ACTIONS............................................................................................................ 143

10.5 SENSITIVITY ANALYSIS.............................................................................................................................. 144

11 DICION ......................................................................................................................................... 151

11.1 DELIMITATIONS AND PRIORITIES................................................... .............................................................. 15111.2 GENERALNESS........................................................................................................................................ 15111.3 CONTRIBUTION...................................................................................................................................... 152

12 BIBLIOGAH ..................................................................................................................................... 153


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FIGURE 1ORGANIZATIONAL STRUCTURE (CEDERROTH AB,COMPANY PRESENTATION,2010) .................................................... 6FIGURE 2DESCRIPTION OF THE STRATEGIC PURCHASING ORGANIZATION (CEDERROTH AB,PURCHASING PRESENTATION,2010) ....... 7FIGURE 3INTERPRETIVE STRUCTURAL MODEL (ISM)FOR VENDOR SELECTION CRITERIA (MANDAL &DESHMUKH,1993) ............... 19FIGURE 4IDENTIFYING THE INFLUENCE OF THE ENVIRONMENTAL STRATEGY ON THE SUPPLIER SELECTION PROCEDURE (NOCI,1997) 32FIGURE 5CLASSIFICATION OF GREEN PURCHASING STRATEGIES (MIN &GALLE,1997) ............................................................ 33FIGURE 6SIX KEY CONCEPTS FOR ENVIRONMENTAL MANAGEMENT,MAKOWER (1994)IN WEE ET AL (2005) ............................. 36

FIGURE 7SEVEN CRITICAL FACTORS OF ENVIRONMENTAL MANAGEMENT(WEE &QUAZI,2005) .............................................. 37FIGURE 8FRAMEWORK FOR ENVIRONMENTAL PERFORMANCE ATTRIBUTES (HANDFIELD,WALTON,SROUFE,&MELNYK,2002)..... 42FIGURE 9SYSTEM DESCRIPTION .................................................................................................................................... 55FIGURE 10PURPOSE BREAKDOWN................................................................................................................................ 57FIGURE 11ILLUSTRATION OF RELIABILITY AND VALIDITY MEASUREMENTS BASED ON(BJRKLUND &PAULSSON,2003) ................. 64FIGURE 12METHODOLOGY PROCEEDING.......................................................... .............................................................. 65FIGURE 13ACCOMPLISHMENT OF THE PRELIMINARY STUDY.................................................... ............................................ 66FIGURE 14OUTLINE OF THE TASK DEFINITION.................................................................................................................. 67FIGURE 15PROCEEDING OF THE MODEL CREATION........................................................................................................... 68


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TABLE 1FRAMEWORK FOR SCIENTIFIC APPROACHES BY ABNOR ET AL (1997)IN GAMMELGAARD (2004) ..................................... 3TABLE 2PURCHASING PROCESS DOCUMENTS................................................................................................................... 11TABLE 3GUIDELINES FOR SUPPLIER ATTRIBUTE (MURALIDHARAN,ANANTHARAMAN,&DESHMUKH,2002) ............................... 16TABLE 4SIX ATTRIBUTES AND LEVELS OF SUPPLIER PERFORMANCE (MUMMALANENIA,DUBAS,&CHAOC,1996) ....................... 17TABLE 5DEFINITIONS OF THE EIGHT METRIC EVALUATION CRITERIA (CAPLICE &SHEFFI,1994) ................................................. 18TABLE 6CRITERIA CATEGORIES SUGGESTED BY THE LITERATURE........................................................................................... 21

TABLE 7CRITERIA RELATED TO ORGANIZATIONAL ASPECTS....................................................... ........................................... 22TABLE 8CRITERIA RELATED TO PRODUCTION ASPECTS................................................................ ........................................ 22TABLE 9CRITERIA RELATED TO QUALITY ASPECTS.............................................................................................................. 23TABLE 10CRITERIA RELATED TO LOGISTICS ASPECTS.......................................................................................................... 24TABLE 11CRITERIA RELATED TO PRODUCT DEVELOPMENT ASPECTS...................................................................................... 25TABLE 12CRITERIA RELATED TO PRICE/COST ASPECTS................................................................ ........................................ 26TABLE 13CRITERIA SUGGESTED IN THE LITERATURE THAT ARE DIFFICULT TO CATEGORIZE...................................................... .... 27TABLE 14DEFINITIONS OF ENVIRONMENTAL PURCHASING.................................................................................................. 27TABLE 15STRATEGIES FOR ENVIRONMENTAL MANAGEMENT(WALTON,HANDFIELD,&MELNYK,1998) ................................... 33TABLE 16SUMMARIZATION OF ENVIRONMENTAL PERFORMING FACTORS DERIVED FROM THE LITERATURE................................... 35TABLE 17CRITERIA FOR SUPPLIER ENVIRONMENTAL PERFORMANCE (HANDFIELD,WALTON,SROUFE,&MELNYK,2002) .............. 41TABLE 18ENVIRONMENTAL VARIABLES AFFECTING SUPPLIER SELECTION (MIN &GALLE,2001) ................................................ 43TABLE 19MULTI CRITERIA DECISION MAKING APPROACHES DISCUSSED BY (HO,XU,&DEY,2010),(FACTS NOT DISCUSSED IN THE

REPORT ARE MARKED N/A) ................................................................................................................................. 46TABLE 20PERFORMANCE OF STATE OF THE ART MODELS FOR ENVIRONMENTAL VENDOR RATING SYSTEMS (NOCI,1997) .............. 47

TABLE 21SUPPLIER INFORMATION COLLECTION (GORDON,2005) ...................................................... ................................ 49TABLE 22SUPPLIER CLASSIFICATION DUE TO SCORING RESULTS (BAYER AG,2010) ................................................................ 50TABLE 23CRITERIA CATEGORIES MENTIONED AS IMPORTANT FOR SUPPLIER EVALUATION......................................................... 75TABLE 24SUMMARIZATION OF CRITERIA IN EXISTING SUPPLIER EVALUATION MODEL,FOR DETAILS SEE APPENDIX D ...................... 78TABLE 25EXISTING SCALE FOR EVALUATING SUPPLIER PERFORMANCE.............................................................. ..................... 79TABLE 26CENTRAL CRITERIA IDENTIFIED THROUGH SPECIAL INTERVIEWS........................................................ ....................... 80TABLE 27CATEGORIZATION OF ENVIRONMENTAL CRITERIA IN REACTIVE AND PROACTIVE CRITERIA........................................... 108

TABLE

28C

RITERIA WEIGHTING RESPONSIBILITIES......................................................... .................................................. 120TABLE 29WEIGHTING RESULT.................................................................................................................................... 123

TABLE 30SUPPLIER INFORMATION COLLECTION METHODS RECOMMENDED FOR CEDERROTH.................................................. 126TABLE 31BAYER AGSUPPLIER CLASSIFICATION WITH CORRESPONDING PERCENTAL SCORE..................................................... 128TABLE 32SUPPLIER CLASSIFICATION FOR THE EVALUATION MODEL PROPOSED IN THIS STUDY.................................................. 128TABLE 33SCHEME OF CEDERROTH REPRESENTATIVES EVALUATING THE CASE SUPPLIERS........................................................ . 129


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