Value Management as Next Level Method for Sustained Cost Reduction in Procurement

Abstract

This thesis investigates the integration of Value Management (VM) as an advanced methodology for sustained cost reduction and value creation in procurement, with specific focus on the European semi-trailer manufacturing sector. Using Wielton S.A.(WSA) as a representative case study, the research examines how VM transcends traditional cost-cutting approaches to deliver comprehensive organizational value through strategic alignment, operational integration, and cultural transformation. The study combines extensive literature review with empirical research through a cross-functional survey targeting procurement stakeholders within WSA. The theoretical framework establishes VM's evolution from value engineering principles to a holistic management philosophy encompassing supplier partnerships, innovation facilitation, and performance optimization. The research addresses two critical questions:Question 1: What constitutes an effective Value Management framework?Question 2: How can organizations integrate Value Management into procurement practices? Key findings reveal significant gaps between theoretical VM potential and practical implementation, with departmental variations in awareness and adoption levels. The study identifies organizational culture, resource constraints, and stakeholder alignment as primary implementation barriers, while highlighting opportunities for digital transformation and supplier collaboration enhancement. The research contributes to academic literature by providing empirical insights into VM implementation challenges within industrial contexts, while offering practitioners a structured approach to advancing procurement capabilities. Recommendations include phased implementation strategies, capability development programs, and performance measurement frameworks tailored to organizational readiness levels. The findings support the thesis that VM represents a transformative approach to procurement that can deliver sustained competitive advantage when properly implemented and supported by appropriate organizational conditions.