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A synthetic study of sourcing strategies

Amy Zhaohui Zeng (Worcester Polytechnic Institute, Worcester, Massachusetts, USA)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 1 July 2000

Abstract

As more evidence indicates that a corporation is very much defined by its purchases and benefited by its close partnership with the suppliers, the sourcing decision becomes increasingly important in the firm’s growth and profit. This paper synthesizes the available sourcing alternatives into four categories, namely multiple sourcing, single sourcing, single/dual hybrid or network sourcing, and global sourcing, and provides a comprehensive review of these purchasing methods based on extensive literature. Besides the discussion of the pros and cons, the paper focuses on the underlying factors that determine the preference and suitability of each sourcing option. In addition, with the note that numerous companies are switching to do business on a global basis, we attempt to use China as an example to examine global sourcing from the standpoints of both buyer and supplier.

Keywords

Citation

Zhaohui Zeng, A. (2000), "A synthetic study of sourcing strategies", Industrial Management & Data Systems, Vol. 100 No. 5, pp. 219-226. https://doi.org/10.1108/02635570010304798

Publisher

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MCB UP Ltd

Copyright © 2000, MCB UP Limited