Internet‐supported sourcing of complex material

Abstract

Currently, automotive original equipment manufacturers (OEMs) aim at developing Internet‐based methods to redesign their relationships with the suppliers. The majority of the manufacturers believe this to be a possibility to improve the relationships to their suppliers, especially regarding transparent cost‐structures. Suppliers on the other hand are very skeptical about methods in this area. Their fears of rising price pressure and potential losses of know‐how and competitive advantages are high. This article examines how strategic sourcing can be supported by Internet‐based methods. Thus, it tries to answer the question how the relationship between OEMs and suppliers will develop regarding the sourcing of complex material: will the Internet‐based relationships enhance collaboration or increase competition? An empirical study within the German automotive industry shows that the views of suppliers and OEMs differ substantially regarding the benefits and risks of an Internet‐based support of strategic sourcing. Hence, it seems that non‐technological problems are the main obstacles in the transition of these methods. It is evident that suppliers generally fear increased transparency within their structures in many different areas.

Citation

Kersten, W., Schroeder, K.A. and Schulte‐Bisping, A. (2004), "Internet‐supported sourcing of complex material", Business Process Management Journal, Vol. 10 No. 1, pp. 101-114. https://doi.org/10.1108/14637150410518356