1215 STX OSV Supplier Analysis

1215 STX OSV Supplier Analysis


Bjørn Guvåg, Oddmund Oterhals, , Sasan Mameghani Moghaddam, Anne Tafjord Seth, Terje Ona, Ronny Furstrand


Møreforsking Molde AS


VRI-programmet for Møre og Romsdal









Previous analysis has shown that the five STX OSV shipyards in Norway had a purchase share of turnover of 84 percent and 77 percent in 2009 and 2010, respectively, and Norwegian suppliers constituted 67 percent and 66 percent of total purchased value during those same years. The supplier part of the maritime industry has become the largest group of actors. To elaborate and verify own supplier strategies, STX OSV contacted Møreforsking Molde (MFM) to perform studies on empirical financial data of regional shipbuilding suppliers. During the past few years, STX OSV has developed or acquired its own supplier companies within the design, electro installation, piping and accommodation areas.

MFM has been gathering empirical data from regional maritime suppliers since 1987. The first part of the report discusses the successful development of this industry during the past 25 years, with STX OSV becoming the largest shipbuilder and owner of a comprehensive group of supplier companies.

The study on empirical data concentrated on ship equipment suppliers, which comprises the largest subgroup. Further categorisation is based on assigned scores for product complexity and competence intensity. The analysis proves that supplier companies with complex products and the highest competence showed improved growth and profitability. Smartness pays off!

The last part of the report uses the methods and theories of Dr Peter Kraljic to analyse and classify suppliers according to supply risk and profit impact. The main findings show that as much as 83 percent of total purchasing value is categorised as strategic items that demand close co-operation with suppliers. Relevant purchasing strategies for different categories of suppliers are discussed.