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Article
Publication date: 14 September 2015

Andrew Cox

The paper aims to present the case for a “paradigm shift” in current thinking about how to undertake category management and develop sourcing strategies using power positioning…

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Abstract

Purpose

The paper aims to present the case for a “paradigm shift” in current thinking about how to undertake category management and develop sourcing strategies using power positioning techniques. The case is made based on the growing evidence of a mismatch between currently dominant academic and consulting methodologies and the reality of professional managerial practice.

Design/methodology/approach

The paper provides a critique of the currently dominant thinking about how to conduct category management and strategic sourcing using the Kraljic Purchasing Portfolio Analysis methodology and the more recent Purchasing Chessboard approach. The critique focuses on their lack of analytical rigour when segmenting categories of supply, and their lack of robustness when making practical recommendations for managers when developing sourcing strategies.

Findings

The paper demonstrates how (building on the initial power positioning approach outlined, but not fully developed, by Kraljic) a new approach to portfolio analysis can be developed. Sourcing Portfolio Analysis identifies over 30 strategic sourcing strategies for managers to utilise. Using a simple case study, the power of this new methodology to provide managers with more comprehensive and effective sourcing strategies is demonstrated.

Research limitations/implications

Because of the power of this new approach, and the need to challenge existing methodologies, researchers are encouraged to utilise it and try help to generate a “paradigm shift” in current thinking within the profession.

Practical implications

The paper provides the basis for a future more strategic supply management, rather than the currently tactical spend management, approach to sourcing.

Originality/value

This paper provides a new approach to portfolio analysis.

Details

Supply Chain Management: An International Journal, vol. 20 no. 6
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 20 August 2021

Guilherme F. Frederico, Vikas Kumar and Jose Arturo Garza-Reyes

This research investigates the impact of the strategic sourcing process on the supply chain response to COVID-19. The paper presents practitioners' perspectives (experts in supply…

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Abstract

Purpose

This research investigates the impact of the strategic sourcing process on the supply chain response to COVID-19. The paper presents practitioners' perspectives (experts in supply chain management, especially involved in the procurement field) on the strategic sourcing process's impact on the supply chain response.

Design/methodology/approach

The study follows a survey-based approach for data collection. It uses a descriptive survey methodology where questions related to the impact of the strategic sourcing process on the supply chain response in the face of the coronavirus pandemic were explored by practitioners.

Findings

In total, 130 valid responses were obtained. The results showed that the majority of respondents agreed or strongly agreed that strategic sourcing positively impacts the supply chain response amid the COVID-19 effects. Also, for the five phases of the strategic sourcing process, the majority of respondents considered them as a high and very high impact on the supply chain response.

Research limitations/implications

This paper provides timely insights for practitioners and academics, especially those involved in the supply chain management area, showing how the strategic sourcing process plays an important role in making supply chains more responsive amid disruption situations.

Practical implications

Findings of this paper clearly shows the impact of the phases of the strategic sourcing process on the responsiveness of the supply chains amid the COVID-19 pandemic. This can encourage supply chain leadership to devote more time to strategic sourcing initiatives to generate improvements on the supply chain performance.

Originality/value

This paper is unique since it brings an unexplored relation in respect to strategic sourcing amid disruption situations, such as the COVID-19 pandemic, from a practitioner's perspective. It also significantly contributes to developing new directions for the supply chain management domain to deal with large-scale disruptions, such as the coronavirus pandemic.

Details

Business Process Management Journal, vol. 27 no. 6
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 1 March 2014

Timothy G. Hawkins, Mark E. Nissen and Rene G. Rendon

Knowledge-based services (KBS) comprise a major portion of services acquired by public organizations. However, their procurement is not well managed; consequently, inefficiencies…

Abstract

Knowledge-based services (KBS) comprise a major portion of services acquired by public organizations. However, their procurement is not well managed; consequently, inefficiencies abound. Therefore, this study explores whether and how KBS can be sourced more efficiently by examining best practices and precepts from knowledge management theory. A spend analysis of one agencyʼs spend is used to identify the types of KBS procured. Interviews from 12 cases are then used to identify best practices and cost drivers in sourcing KBS. Twenty one recommendations for improving efficiency in sourcing KBS are offered. The findings suggest that potential is available from demand reduction strategies, and that public policy governing the procurement of knowledge is needed. The research concludes with theoretical implications and suggestions for future research.

Details

Journal of Public Procurement, vol. 14 no. 2
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 21 November 2023

Yu Han, Anna Yumiao Tian, Woon Kian Chong, Alain Yee Loong Chong and Antony Paulraj

The purpose of this paper is to provide small and medium-sized enterprises (SMEs) in emerging markets with an updated Purchasing Portfolio Matrix (PPM) specifically for…

Abstract

Purpose

The purpose of this paper is to provide small and medium-sized enterprises (SMEs) in emerging markets with an updated Purchasing Portfolio Matrix (PPM) specifically for international sourcing. This data-driven PPM matrix is designed to provide a dynamic and process perspective that can help SMEs survive the disruptions caused by emergency situations such as the global COVID-19 pandemic.

Design/methodology/approach

This research reports on qualitative interviews with experienced informants from 15 SMEs in the manufacturing industry. The authors follow process-based research using a combination of retrospective and real-time case study approaches to gradually unveil the dynamics in segmentation and sourcing strategies in the international sourcing context during the COVID-19 pandemic.

Findings

The findings reveal the dynamics of segmentation and international sourcing strategies during global disruptions and unpack the underlying logic behind the dynamics that is specific to SMEs in emerging economies.

Originality/value

Existing literature on PPM predominantly focuses on static and normal sourcing circumstances. This paper addresses this gap by adopting a dynamic approach to study how sourcing strategies of SMEs from emerging economies evolve in a highly volatile environment from an international sourcing perspective.

Details

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

Keywords

Article
Publication date: 6 November 2007

Tony C.T. Chan and Kwai‐Sang Chin

This research aims to identify and examine the importance of the key success factors (KSFs) of strategic sourcing, and investigate the relationship between KSFs and sourcing

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Abstract

Purpose

This research aims to identify and examine the importance of the key success factors (KSFs) of strategic sourcing, and investigate the relationship between KSFs and sourcing performance in the Hong Kong toy industry. The KSFs are ranked, and the results show those factors that should be given the highest priority in implementing strategic sourcing.

Design/methodology/approach

A literature review, a questionnaire survey, interviews with industry experts and the analytical hierarchy process (AHP) approach were employed in the study. First, the KSFs were identified after a full review and evaluation of the strategic sourcing literature. A questionnaire survey of 205 companies was then conducted in the Hong Kong toy industry to verify the importance of these KSFs. Finally, 20 sourcing experts from the toy industry were interviewed and assigned pairwise comparison judgements on a proposed AHP model, which prioritised the relative importance of these KSFs for the Hong Kong toy industry.

Findings

About 14 KSFs are identified through the literature review. The survey results indicate that these 14 KSFs are important and they are positively related to sourcing performance. Moreover, the results show that there is only marginal implementation of these 14 KSFs amongst Hong Kong toy companies. With the prioritisation of the identified KSFs by the AHP approach, it is strongly suggested that the toy manufacturers assess and improve their strategic sourcing performance.

Originality/value

The paper identifies the relative importance of the 14 KSFs, which will allow manufacturers to use their limited resources to focus on the most important factors in improving their strategic sourcing practice and performance.

Details

Industrial Management & Data Systems, vol. 107 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 5 May 2020

Sehrish Huma, Waqar Ahmed and Arsalan Najmi

In the era of market turbulence, sourcing specialists consistently face challenges to keep the availability of the material efficiently and effectively without any disruption…

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Abstract

Purpose

In the era of market turbulence, sourcing specialists consistently face challenges to keep the availability of the material efficiently and effectively without any disruption. Sourcing strategies and planning have a huge impact on procurement performance. The purpose of this paper is to examine the relationships among different sourcing strategies and supply risk management and performance and additionally, the role of procurement practices in different strategic settings.

Design/methodology/approach

This is empirical research that collected data gathered from 223 procurement specialists working in various manufacturing firms through a structured questionnaire. Valid data is then analyzed through the structure equation modeling technique for hypotheses testing.

Findings

The findings of this study reveal that supplier development is a partial complementary mediator between multiple supplier strategy and supply-side risk management. While in a volatile business environment, strategic supplier strategy has a significant negative impact on supply-side risk management, and in this case supplier development acts as a competing partial mediator between the two. Contract management has resulted in an important mechanism to be deployed in a strategic sourcing strategy. It is also shown that supplier risk management is also associated with improved supply management performance.

Practical implications

This paper establishes an explanation of theoretical and practical understanding of sourcing strategies and empirically shows that supplier development is the appropriate mechanism to deal with supply-side risk management, which in turn positively impacts on supplier management performance.

Originality/value

This study contributes to supply chain risk management literature, especially in the context of strategic risk management and explains how a strategic decision can impact supply risk management. This provides a piece of empirical evidence regarding the use of well-established procurement practices to improve supply performance.

Details

Benchmarking: An International Journal, vol. 27 no. 5
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 6 January 2012

Chung‐Yean Chiang, Canan Kocabasoglu‐Hillmer and Nallan Suresh

The purpose of this paper is to investigate two potentially key drivers of a firm's supply chain agility, namely strategic sourcing and firm's strategic flexibility. Despite some…

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Abstract

Purpose

The purpose of this paper is to investigate two potentially key drivers of a firm's supply chain agility, namely strategic sourcing and firm's strategic flexibility. Despite some theoretical and conceptual works suggesting that some elements of these two constructs may relate to agility, this has not yet been assessed together empirically. This study aims to address this gap in the literature.

Design/methodology/approach

This study involves an empirical investigation of a theory‐based model based on the competence‐capability framework, and a dynamic capabilities theoretical perspective, where the internal competencies of strategic sourcing and firm's strategic flexibility relate to the dynamic capability of the firm's supply chain agility. This investigation also includes the testing of a possible mediation effect of firm's strategic flexibility on the relationship between strategic sourcing and the firm's supply chain agility. The model is tested utilizing data from 144 US manufacturing firms via partial least square methodology.

Findings

The results of the empirical study indicated that both strategic sourcing and firm's strategic flexibility were significantly related to the firm's supply chain agility. In addition, while a full mediation effect was not found on the part of strategic flexibility, there was evidence for partial mediation.

Research limitations/implications

Given that the data are from specific US industries, the generalizability of current findings to other industries or countries may require additional investigation.

Originality/value

Given the attention paid to agility in terms of its importance to responding to business uncertainty, and more recently, as an important capability in managing supply chain disruption risks, this paper investigates how strategic sourcing and flexibility can contribute to agility.

Details

International Journal of Operations & Production Management, vol. 32 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 15 February 2022

Noorzaini Moktar and Nik Elyna Myeda

The purpose of this paper is to enhance decision-making process for the procurement of facilities management (FM) services within aviation corporate organisation, where the FM…

Abstract

Purpose

The purpose of this paper is to enhance decision-making process for the procurement of facilities management (FM) services within aviation corporate organisation, where the FM services functions to support the business operation. It builds on considering the fundamental elements comprising the FM procurement process from the aviation perspective.

Design/methodology/approach

The paper investigates the characteristics of the different types of sourcing approaches and the underpinning factors affecting its selection for the procurement of FM services within the aviation industry. The decision-making framework for the procurement of FM services is developed based on the qualitative case study by interview and focus group discussion with the custodian department that is directly involved in the procurement of FM services.

Findings

The degree of outsourcing is increasing due to corporate organisation’s persona. Procurement of FM services is a complex process required detailed review, efforts and time in choosing the right sourcing approach. Off the shelf guidelines for the procurement of FM services suits property professional which directly involved with the procurement of FM services. However, decision-making process for the procurement of FM services specifically for aeronautical and non-aeronautical corporate organisation are rarely found. The case study findings signify that the respondents are familiar with the in-sourcing, outsourcing and right sourcing approaches. The underpinning factors affecting sourcing approaches were categorised according to the main reasons for the procurement of FM services, considerable factors during the procurement stage and value-adding criteria. The use of strategic management tools is not widely imposed, and intelligent client guideline is not available. Hence, the decision-making framework has been developed to fill the gap in this study.

Research limitations/implications

The research is based on a study of aviation or airline corporate organisation, which limits the possibility of holistic view to the FM industry as a whole but highlights the research gap of FM procurement which is scarce within the case study of airline companies. The focus area is also bounded within the procurement of FM services designated for the office buildings.

Originality/value

The paper provides initial guideline for the airline company in sourcing the procurement of FM services that were developed based on established guidelines from accrediting bodies and scholars, as well as from the sampling feedback analysis. It is also among the firsts that examine the procurement of FM services in the context of aviation or airline industry. The outcome of this paper is a decision-making framework for the procurement of FM services that is specially designed for the airlines corporate organisations, which fills the gap that exists in the industry.

Details

Facilities , vol. 41 no. 11/12
Type: Research Article
ISSN: 0263-2772

Keywords

Article
Publication date: 11 May 2022

Kiyohiro Oki and Norifumi Kawai

Based on a legitimacy perspective, this study aims to investigate when local sourcing, as a strategic legitimacy action, improves or impairs subsidiary performance. The authors…

Abstract

Purpose

Based on a legitimacy perspective, this study aims to investigate when local sourcing, as a strategic legitimacy action, improves or impairs subsidiary performance. The authors investigate the moderating role of regulatory/normative institutional distance in the relationship between local sourcing and subsidiary performance. Particularly, departing from prior relevant research, the authors reflect on the direction of institutional distance, categorizing it as either upward or downward institutional distance.

Design/methodology/approach

Using Japanese governmental data, this study performs a panel data analysis using a sample of 1,054 Japanese subsidiaries operating in 37 host countries over a 5-year observation period.

Findings

The authors reveal that downward regulatory/normative institutional distance more positively moderates the relationship between local sourcing and subsidiary performance than upward regulatory/normative distance.

Originality/value

There is little research that specifically discusses the performance effects of local sourcing while considering legitimacy concerns. Moreover, the results of analyses of the relationship between local sourcing and subsidiary performance in existing studies are inconsistent, suggesting that it is necessary to identify the boundary conditions under which local sourcing improves or impairs subsidiary performance. To fill these gaps, this study clarifies when local sourcing improves or impairs subsidiary performance based on a legitimacy perspective. The authors’ finding makes a clear contribution to the literature on strategic legitimacy actions and input localization in multinational corporations.

Details

Cross Cultural & Strategic Management, vol. 29 no. 4
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 29 July 2021

Narath Bhusiri, Ruth Banomyong, Puthipong Julagasigorn, Paitoon Varadejsatitwong and Nirpa Dhami

The impact of supply disruptions from unplanned events can cause goods shortage, limited responsiveness and high opportunity cost thus compromising development aid programmes'…

Abstract

Purpose

The impact of supply disruptions from unplanned events can cause goods shortage, limited responsiveness and high opportunity cost thus compromising development aid programmes' achievement targets. These situations force humanitarian aid agencies to develop new strategies for effectively managing their supplies. The purpose of this paper is to illustrate the foundation of humanitarian supply chain resilience through the development of an adapted Kraljic portfolio model.

Design/methodology/approach

Action research was used to adapt and validate the Kraljic portfolio model to the development aid context. The research team worked with a humanitarian aid agency in developing criterions and used Analytical Hierarchical Process (AHP) in weighting those key criterions.

Findings

The adapted portfolio model was able to evaluate purchases done by the aid agency by incorporating different perspectives related to the strategic importance of purchase and supply vulnerability. In particular, development aid programmes require large supplies annually. Better classification offers improved visualisation of purchases, leading to a more precise adoption of mitigation strategies and policies to minimise supply disruption risks.

Research limitations/implications

Adapting the Kraljic portfolio model is a stepping-stone to building humanitarian supply chain resilience. The proposed humanitarian supply chain resilience framework is based on the foundation that current humanitarian supply chain needs to be re-engineered. In order to re-engineer, the supply base strategy must first be revisited.

Practical implications

Many aid agencies do not have a holistic view on their purchases and commonly apply a transactional classification of purchases that only considers the consumption values. Purchasing strategies mostly focus on cost minimisation, whereas risk mitigations have been disregarded. The proposed portfolio model overcomes these drawbacks. Societal impact may be limited but development aid agencies will be able to offer more reliable aid delivery as part of their mandate.

Originality/value

The proposed portfolio model is among the first tool to guide humanitarian aid agencies to develop procurement strategies to alleviate supply disruptions and increase development aid programmes resilience.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 11 no. 4
Type: Research Article
ISSN: 2042-6747

Keywords

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