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Article
Publication date: 1 August 1990

J. Ramsay and I. Wilson

The strategy combination of single sourcing and long‐term contractsis rapidly becoming the norm in progressive purchasing functions. Theimplications of this radical…

Abstract

The strategy combination of single sourcing and long‐term contracts is rapidly becoming the norm in progressive purchasing functions. The implications of this radical development is examined by disentangling the advantages and disadvantages of the separate strategies before recombining them to provide a generally applicable sourcing/contracting decision‐making model. The conclusions indicate that, contrary to current practice, large, powerful purchasing functions should avoid the use of single sourcing and long‐term contracts.

Details

International Journal of Operations & Production Management, vol. 10 no. 8
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 15 May 2007

F.Y. Tam, K.L. Moon, S.F. Ng and C.L. Hui

The main purpose of this paper is to compare the differences between the small and medium‐sized enterprises (SMEs) and the large enterprises (LEs) of the Hong Kong…

Abstract

Purpose

The main purpose of this paper is to compare the differences between the small and medium‐sized enterprises (SMEs) and the large enterprises (LEs) of the Hong Kong clothing industry in terms of the adoption of production sourcing strategies and buyer‐supplier relationships.

Design/methodology/approach

A questionnaire survey was conducted among 120 small to large‐sized clothing firms in Hong Kong.

Findings

The results show that there were certain differences between SMEs and LEs with regard to production sourcing: LEs are more able to disperse production globally; LEs are more likely to adopt single sourcing, while SMEs prefer multiple sourcing; SMEs tend to use a combined strategy of in‐ and outsourcing, whereas LEs select either insourcing or outsourcing; and LEs are more likely to develop a formal strategic alliance with their trading partners.

Research limitations/implications

The adoption of sourcing strategies and buyer‐supplier relationships may change over time: future research should also be directed towards collecting longitudinal data.

Practical implications

To compete with LEs, SMEs have to ally strategically with their trading partners. Adopting sourcing strategies in a more cooperative manner is therefore imperative. Nonetheless, both SMEs and LEs should exploit their advantages by adopting proper or innovative combinations of sourcing strategies and buyer‐supplier relationships, and hence their respective disadvantages can be offset and their competitive advantages can be enhanced.

Originality/value

This paper examines the differences between SMEs and LEs in the adoption of production sourcing strategies and buyer‐supplier relationships. This study provides an implication for the management of SMEs and LEs in terms of production sourcing.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 11 no. 2
Type: Research Article
ISSN: 1361-2026

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Article
Publication date: 16 October 2007

Johan Åkesson, Patrik Jonsson and Robert Edanius‐Hällås

The purpose of this paper is to empirically identify different types of sourcing strategies applied in the apparel industry, and to explain how various sourcing strategies

Abstract

Purpose

The purpose of this paper is to empirically identify different types of sourcing strategies applied in the apparel industry, and to explain how various sourcing strategies are related to the apparel firm's characteristics, prerequisites and supplier performance.

Design/methodology/approach

This paper is based on a survey that was sent out to Swedish apparel firms. Commonly applied sourcing strategies, in terms of supply markets and supply channels, are first derived using cluster analysis. These strategies are then linked to relevant firm characteristics, prerequisites and supplier performance measures, where significant differences between groups of firms applying various sourcing strategies are targeted.

Findings

Five commonly applied sourcing strategies are identified. Further, several significant differences – with respect to product issues, organizational issues and supplier performance – are found between the firm groups.

Research limitations/implications

Several future research areas in conjunction with this study can be derived by widening or changing the scope. For instance, other industries as well as apparel industries in other countries can be targeted and thus provide valuable comparisons.

Practical implications

Assessing the contextual appropriateness of sourcing strategies provides a strategic sourcing benchmark for firms across industries. Notably, apparel firms' experience in exploiting low‐cost supply markets may provide valuable insights for firms that just recently have recognized the potential of these markets.

Originality/value

This paper provides a contextual understanding of how various sourcing strategies are utilized in the Swedish apparel industry, and thereby contributes to the general conception of sourcing strategies.

Details

International Journal of Physical Distribution & Logistics Management, vol. 37 no. 9
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 7 May 2019

Khai Ying Soh, Shirley Jin Lin Chua, Azlan Shah Ali, Cheong Peng Au-Yong and Anuar Alias

The building maintenance management becomes more complicated nowadays, with several sourcing strategies springing up for building maintenance work provisions. Various…

Abstract

Purpose

The building maintenance management becomes more complicated nowadays, with several sourcing strategies springing up for building maintenance work provisions. Various studies demonstrate that the selection factors and performance measurements are both essential aspects in determining and evaluating the sourcing strategy for building maintenance management. Thus, the purpose of this paper is to examine the relationships between the selection factors and performance measurements of sourcing strategy.

Design/methodology/approach

The paper targeted to evaluate and analyse the perceptions of the building maintenance practitioners regarding the degree of importance of selection factors and performance measurements. Through quantitative approach, the paper adopted stratified random sampling to distribute the questionnaires to the building maintenance practitioners operating in both private and government high-rise office buildings in Kuala Lumpur.

Findings

The findings highlighted the quality factors as the most important selection group factors; meantime, the ability to fulfil client’s need and requirement as well as the ability to deliver the service with reasonable reliability and predictability are identically important performance measurements. There is a significant relationship between the selection factors and performance measurement of sourcing strategy.

Originality/value

This paper provides an impetus research which uncovered the sourcing practices in the industry and guided the sourcing process in determining the appropriate sourcing strategy.

Details

Journal of Facilities Management, vol. 17 no. 2
Type: Research Article
ISSN: 1472-5967

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Article
Publication date: 13 March 2009

Wouter Faes and Paul Matthyssens

The aim of this article is to identify the motivations driving the process of changing sourcing strategy from single sourcing to multiple sourcing or vice versa.

Abstract

Purpose

The aim of this article is to identify the motivations driving the process of changing sourcing strategy from single sourcing to multiple sourcing or vice versa.

Design/methodology/approach

Ten cases of sourcing strategy change were investigated. A qualitative research method is used to uncover the richness of these change processes.

Findings

Most of the advantages and disadvantages stated in the literature were confirmed. Identical objectives (cost cutting and quality improvement) were present in all cases, although changes took place in opposite directions. Contextual factors, such as standardisation and supplier base reduction efforts shape purchasing strategy more than previously thought. The dynamic nature of the product lifecycle also seems to be an important determinant.

Research limitations/implications

Although the results of qualitative case study research can only be “generalised” in a limited way, the case details help to identify the dynamics of sourcing strategy switches and to interpret the rationale behind these moves. Confirmatory follow‐up research covering both the demand and supply side of the market is needed.

Practical implications

Switching sourcing modes is of strategic relevance to managers as lifecycle costing strategies are influenced by them. Managers should plan these decisions more effectively, evaluating the factual pros and cons of a proposed sourcing mode switch and taking the dynamics of supply markets into account.

Originality/value

The importance of the different motives for sourcing strategy changes clearly varies with the dynamism of the context (market situations and strategic intentions of buyers). A model linking the buyers' portfolio matrix to the product life cycle on the supply market is proposed.

Details

Journal of Business & Industrial Marketing, vol. 24 no. 3/4
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 9 July 2018

Ui-Jeen Yu and Ji-Hyun Kim

The purpose of this paper is to examine merchandise performance-based financial productivity of offshore vs reshore sourcing scenarios for fashion/seasonal products with…

Abstract

Purpose

The purpose of this paper is to examine merchandise performance-based financial productivity of offshore vs reshore sourcing scenarios for fashion/seasonal products with higher demand uncertainty, using computer simulation software.

Design/methodology/approach

Using Sourcing SimulatorTM, the researchers generated a data set of 530 simulations concerning merchandising performance measures for offshore and reshore sourcing scenarios. Analysis of covariance was conducted for data analysis.

Findings

Results show financial productivity differs, depending on a sourcing decision between offshore and reshore sourcing scenarios as well as on the levels of volume error and assortment error. The reshore sourcing scenario through “Made-in-USA” domestic production strategy can have a better profitability, including gross margin return on inventory with service level, in cases of under-volume error and over-assortment error, than the offshore sourcing scenario.

Research limitations/implications

Findings from this study are based on simulation data, which may have a gap between simulations and reality concerning the competitive advantages of “Made-in-USA” domestic production strategy. “Made-in-USA” domestic production strategy can be more agile and responsive to the uncertainty of markets and customer demands when the supply chain systems are well-integrated and fully implemented.

Originality/value

Results from this study contribute to fill the literature gap about differences of financial productivity between offshore and reshore sourcing scenarios for apparel manufacturers and retailers. This study also offers an insight of which decision response may be better to uncertain customer demands, while satisfying financial productivity.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 22 no. 3
Type: Research Article
ISSN: 1361-2026

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Article
Publication date: 14 November 2016

Ching-Ting Hsin, Ying-Hsueh Cheng and Chin-Chung Tsai

The purpose of this paper is to explore educational researchers’ online literature searching and sourcing strategies.

Abstract

Purpose

The purpose of this paper is to explore educational researchers’ online literature searching and sourcing strategies.

Design/methodology/approach

Adopting a multiple-case study approach, the authors conducted interviews and compared strategies employed by three groups of researchers: less-experienced doctoral students, experienced doctoral students, and junior faculty.

Findings

The results showed that the three groups differed in four searching strategies and two sourcing strategies. The former included: using and modifying keywords, doing advanced searches to narrow down or expand results, chaining, and networking to retrieve literature, while the latter consisted of: evaluating and selecting multiple-source articles, and self-monitoring the multiple-source searching process. The findings also revealed that the experienced doctoral students and junior faculty were able to adopt searching and sourcing strategies flexibly and simultaneously for the purpose of determining more relevant and useful sources. The findings suggest that these researchers, especially the less-experienced students, need specialized training to acquire sourcing strategies in order to critically evaluate relevant information or scholarly work to fulfill their research purposes.

Originality/value

Information seeking, an essential part of scholars’ work, has been widely examined across disciplines. However, few studies have explored scholars’ searching and sourcing behaviors for online academic literature. This study fulfilled the research gap.

Details

Online Information Review, vol. 40 no. 7
Type: Research Article
ISSN: 1468-4527

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Article
Publication date: 19 April 2011

Holger Schiele, Philipp Horn and Bart Vos

Research results concerning the cost‐saving potential of international sourcing have been ambiguous and the topic has been covered in isolation without accounting for…

Abstract

Purpose

Research results concerning the cost‐saving potential of international sourcing have been ambiguous and the topic has been covered in isolation without accounting for influences of alternative cost‐saving approaches. This paper aims to analyze the expected financial impact of international sourcing in relation to savings potential attributed to other sourcing tactics, such as, e.g. collaborative product improvement. Furthermore, the paper tests for potential trade‐offs between different levers.

Design/methodology/approach

Data stem from results of 134 cross‐functional cost‐saving workshops using an identical methodology. Workshop participants identified and estimated cost‐saving projects considering seven sourcing levers. Results were recorded in a standardized way and analyzed scrutinizing secondary data.

Findings

Contrary to other studies, data revealed that international sourcing projects averaged 3.4 percent savings expectations. More than 80 percent of total savings potential was attributed to other sourcing levers, such as pooling of demand or process improvement. Results highlight possible trade‐offs between international sourcing and, e.g. joint product optimization.

Research limitations/implications

A rigorous and strict, highly standardized method was employed and data were validated via cross‐functional team discussions, however, ex ante expectations instead of ex post realized savings are analyzed.

Practical implications

Findings give guidance on the importance of international sourcing compared to other levers and help to correct the misconception of international sourcing as a “purchasing panacea.” The findings highlight the need to develop a coherent sourcing strategy for specific commodity groups, including reinforcing tactics and avoiding trade‐offs.

Originality/value

For the first time, explicitly cost‐savings expectations from international sourcing have been analyzed together with other cost‐saving levers concerning relative importance and possible trade‐offs among them.

Details

International Journal of Physical Distribution & Logistics Management, vol. 41 no. 3
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 1 July 1993

Shan Rajagopal and Kenneth N. Bernard

The progressive dismantling of trade barriers emphasizes the needfor companies to compete effectively in open markets not only forbusiness but also for supplies and…

Abstract

The progressive dismantling of trade barriers emphasizes the need for companies to compete effectively in open markets not only for business but also for supplies and suppliers. Puts forward a framework for global procurement management to conceptualize current practices and to act as a guide to practitioners. Draws on existing globalization literature and examines the extent of consonance between the marketing and procurement environments, concluding that, whilst the conceptual models may be transferable and “stages” of globalization of procurement may be identified, there is no proof of sequential progress; neither is the link between global marketing and global procurement necessarily two‐way in nature. Postulates modes of involvement in global procurement as a continuum, where positioning for an individual firm depends on situation‐specific trade‐offs between their preferred corporate strategies and the benefits to be gained from involvement in foreign supply markets over time.

Details

Marketing Intelligence & Planning, vol. 11 no. 7
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 14 August 2007

Andrew Cox, Daniel Chicksand and Tong Yang

The purpose of this paper is to show that a proactive sourcing strategy can be just as important as a proactive marketing strategy in achieving sustainable competitive advantage.

Abstract

Purpose

The purpose of this paper is to show that a proactive sourcing strategy can be just as important as a proactive marketing strategy in achieving sustainable competitive advantage.

Design/methodology/approach

The paper reports on action research carried out in the UK beef industry, with a focus on the food service supply chain. The methodology is inductive and qualitative, using a multi‐case, multi‐site approach. The supply chains presented in the case were analysed from farm gate to consumer, interviewing multiple participants at each stage of the supply chain.

Findings

This study offers some partial support for configuration‐based approaches. However, the case also raises some doubts about the validity of configuration thinking, as it is not the complexity or ambiguity of the relationships that is key in the case, but the fact that brand ownership and contracts create property rights for their owner that create a relatively permanent power resource for Pioneer, the case study company, in its market struggle with its customers and competitors. This interpretation supports the power and property rights views of strategic management rather than the configuration approach.

Research limitations/implications

The research is based upon in‐depth knowledge of the UK beef and red meat industry. It would be beneficial if further in‐depth studies could be undertaken in other agri‐food supply chains to further validate the findings.

Practical implications

Although the focus of this article has been upon choosing appropriate sourcing strategies, the case study has also illustrated the importance for business managers of linking this sourcing strategy with a firm's marketing, and more specifically its branding strategy.

Originality/value

The paper analyses the key differences in demand, supply and power and leverage characteristics in the food service beef supply chain to highlight the need for government agencies, think‐tanks and industry participants to have a more robust understanding of industries before advocating the adoption of any one approach for all UK agri‐food supply chains. This paper should be of value to researchers in this area and to managers responsible for strategy formation in UK agri‐food supply chains.

Details

Supply Chain Management: An International Journal, vol. 12 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

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