Development of a two-stages supplier base reduction process : a practical analysis of the applicability of the model to GSK global operations procurement

The supplier base at the Global Operations Procurement department (GOP) is composed of multiple suppliers which follow a similar Pareto distribution. Due to numbers growth factors, the base has been enlarged since a couple of years. A recent review of the GOP supplier base revealed that the current supplier base is widely spread among thousands of suppliers. As a consequence, the rise of some inefficiencies in various supplier relationships. The following thesis intends to discuss this topic. The following thesis is based on a case study analysis (GSK Vaccines) which consists of examination of the current processes and supplier management practices. Considering this analysis, a benchmark has been conducted over several companies with several purchasing functions maturities. The methodology used to conduct this thesis is the action research, which facilitates the comprehension of supplier base management issues. The thesis strives to give insight on how GSK currently operates and tries to propose a conceptual development model of supplier base reduction subsequently. The key objective of the model is facilitate future decision-making through a comprehensive depiction of the activities to be performed and actions/roles to be endorsed by stakeholders. The model proposal was conceived based on a triangulation approach. Firstly, developed based on prior literature research ; secondly based on the cross-industries information gathered thanks to the benchmark conduction ; and thirdly the model was tailored and reviewed to fit GSK environment. Each information gathering process was reviewed by the second stage of collection, which enabled me to ensure a coherent verification of the information. The model developed is of repeatable nature and consists of four major development stages that incorporate several sub-stages. Beyond the model proposal, the thesis gathers relevant business intelligence information stemming from the benchmark and literature review elaboration. Finally, a discussion of impediments to implementation, potential room for improvement and other suggestions and recommendations is provided.