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Title: Efficient purchasing in an organization: the importance of qualified purchasing personnel (A case study of ABB, Västerås)

Purpose: The purpose of this research is to learn and present how ABB (Västerås) perceives the role of the purchasing function, and the importance of involving qualified purchasing personnel in the purchasing process. By evaluating their:

·           Level of participation in the overall corporate planning process,

·           Relationship to suppliers and other internal units,

·           Responsibilities toward the organization, for determining how they contribute to its efficiency

Method:  This thesis is a case study on ABB (Västerås). We have used a qualitative method to conduct the research. We have also obtained primary data through face-to-face interviews and secondary data by an extensive literature search using peer-reviewed articles, textbooks, search engines, and the MDH database.

Conclusion: Subsequent to our findings, we are of the opinion that there is a positive perception concerning the role of purchasing function and purchasing personnel in ABB. We assert this is due to the recognition that purchasing, contributes significantly to the organization’s profit, helps in making savings and reducing costs compared to what was obtainable a few decades ago. We have also found that there is also a realization on the part of management that the skills and knowledge of the purchasing personnel in devising strategies, coordinating with other internal functions, and dealing with suppliers etc. are major factors responsible for the benefits that purchasing provides to ABB (Västerås).

We have observed through our findings that the efficiency of the purchasing function in ABB is rooted in its purchasing personnel. In our opinion purchasing personnel high involvement in the corporate planning process in ABB, cooperation with top management, and liaison with other functional units are what makes purchasing efficient in the organization.