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dc.contributor.advisorDavid Simchi-Levi.en_US
dc.contributor.authorOlsha, Maya (Olsha-Yehiav)en_US
dc.contributor.otherSystem Design and Management Program.en_US
dc.date.accessioned2010-10-12T19:00:29Z
dc.date.available2010-10-12T19:00:29Z
dc.date.copyright2010en_US
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/1721.1/59262
dc.descriptionThesis (S.M. in System Design and Management)--Massachusetts Institute of Technology, Engineering Systems Division, 2010.en_US
dc.descriptionCataloged from PDF version of thesis.en_US
dc.descriptionIncludes bibliographical references.en_US
dc.description.abstractResearch on Procurement Risk Management has been conducted by Accenture and MIT in order to identify the best practices used to manage commodity price volatility and supplier risk. In today's increasingly turbulent market it is crucial for companies to have their procurement risk management capabilities developed. Risk Management becomes imperative for buyers in order to make the best business decisions and continue to drive their performance up. Risk Management is now becoming a major requirement for Procurement departments, and while most companies have risk-management expertise within their finance departments, only a few formally extend this capacity into the procurement department. Excellence in managing risks will be a key differentiator for procurement departments in the near future. The main risk categories today are suppliers and price risks. These risks can be managed by different sets of capabilities in an effort to reduce a possible impact. The risk management process contains three main stages; risk anticipation, risk identification and monitoring, and risk mitigation. As all stages are important to master, some capabilities have shown clearer correlation than others. By conducting an extended literature review, procurement top management personnel interviews, and brainstorming sessions with Accenture, a set of hypotheses were formed. This set of hypotheses was verified against the results of a survey. The survey contained an extended set of questions that revolved around each hypothesis. This survey was answered by 122 companies from various industries. The main conclusions are based on observations and detailed analysis of survey results. A lack of impact measuring and a lack of use of technology for the purpose of risk assessment were observed. It is believed that improving these capabilities will promote profitability, and prevent impact as a result of risky events. Based on the results analysis, the procurement performance level is heavily dependant on risk management measures, and that excelling at the procurement level can be reflected further on the overall success of the company.en_US
dc.description.statementofresponsibilityby Maya Olsha.en_US
dc.format.extent92 p.en_US
dc.language.isoengen_US
dc.publisherMassachusetts Institute of Technologyen_US
dc.rightsM.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.en_US
dc.rights.urihttp://dspace.mit.edu/handle/1721.1/7582en_US
dc.subjectEngineering Systems Division.en_US
dc.subjectSystem Design and Management Program.en_US
dc.titleHigh performance in Procurement Risk Managementen_US
dc.title.alternativeHigh performance in PRMen_US
dc.typeThesisen_US
dc.description.degreeS.M.in System Design and Managementen_US
dc.contributor.departmentMassachusetts Institute of Technology. Engineering Systems Division.en_US
dc.contributor.departmentSystem Design and Management Program.en_US
dc.identifier.oclc667706662en_US


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