The purpose of this study is to develop a Supplier Diversification Tender Process (SDTP) process unifying two procurement processes: Supplier Diversification and Sourcing Tender and showcase its applicability in a case study of a procurement category from industry to and the effect it has on its sourcing set up. This study started by conducting a theoretical review to strengthen the understanding of both Supplier Diversification and Sourcing Tender. Then a case study was conducted leading to obtaining imperial data via Historic PO Data, semi structured interviews with procurement professionals, a survey, a Rent vs Buy financial analysis exercises, two manufacturing site visits which also featured semi structure interviews, and Market Research. The data obtained from the various sources complimented the one obtained in the theoretical review. This study presents a seven step Supplier Diversification Tender Process processes. It utilizes previously applied and accepted methods in literature to do so. Building on this, different methods were used to obtain a clear flow for the process, ensuring that the organization can diversify its supply base while also reducing cost. This study addresses the gap in current literature where supplier diversification and Sourcing Tender are treated as separate processes. Specifically, this thesis proposes a Supplier Diversification Tender Process for organizations seeking sustainably tender and diversify a category subject to sole supplier set up. This SDTP processes developed in this study aids organizations in their goal to optimize their supply chain set up and reduce dependency on one sole supplier.

This study investigates one category’s perspective. Elements which are not applicable to this category might have been overlooked. Furthermore, due to sensitivity of the data, only one company was considered for the case study. This means the study was not able to compare behavior across multiple supply chain organizations to derive its outcomes.