Lean supply and price-based global sourcing — the interconnection

Nellore, Rajesh; Chanaron, Jean–Jacques; Söderquist, Klas Eric

doi:10.1016/s0969-7012(00)00027-7

Cited by 50 publications

(54 citation statements)

References 3 publications

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“…Organizational culture. The criticality of organizational culture in determining successful business process integration has long been established (Weber and Pliskin, 1996;Nellore et al, 2001;Riad, 2005;Vieru and Rivard, 2014). Riad (2005) reported incompatible organizational culture as a major obstacle to the attainment of expected benefits in organizations.…”

Section: Quality Problemsmentioning

confidence: 99%

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Sourcing complexity in the Chinese manufacturing sector: An assessment of intangible factors and contractual relationship strategies

Subramanian

Rahman

Abdulrahman

2015

International Journal of Production Economics

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Section: Quality Problemsmentioning

confidence: 99%

“…Riad (2005) reported incompatible organizational culture as a major obstacle to the attainment of expected benefits in organizations. Several studies have explained the importance of organizational culture for interorganizational process integration based on strong cooperation, trust and commitment (Nellore et al, 2001).…”

Section: Quality Problemsmentioning

confidence: 99%

Sourcing complexity in the Chinese manufacturing sector: An assessment of intangible factors and contractual relationship strategies

Subramanian

Rahman

Abdulrahman

2015

International Journal of Production Economics

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“…Cultural differences can pose a problem for companies who have minimal experience: "India or China provided significantly higher benefits in competitive advantage (accessing lower priced goods, obtaining better value for money, and enhancing competitive position) than did Taiwan or Korea" (Cho and Kang, 2001, p. 558). Nellore et al (2001) claim that global sourcing is contrary to a lean production strategy, and urge companies to make cautious decisions by considering the product's complexity and criticality. In addition, Hult (2002) concludes that the structure of the global process (centralised, formalised, specialised) has a significant effect on activities and relationships.…”

Section: Global Sourcingmentioning

confidence: 99%

“…Trent and Monczka (2003) identified cost savings up to 15% through global sourcing and companies aimed to increase their global spend, but also remind of the potential risk and managers' lack of consideration of sustainability aspects. Furthermore, Nellore et al (2001) argues against the benefits of global sourcing and its compatibility with the lean management philosophy. The key differentiator between Asia and Eastern European suppliers are clearly lead times (Akesson et al, 2007).…”

Section: Global Sourcingmentioning

confidence: 99%

“…However, there are also critical voices in the global sourcing context, claiming it restricts flexibility and that the price advantage is lost through logistic costs and customs. Nellore et al (2001) argue that even global sourcing cannot be seen as "lean" in terms of production, and Akesson et al (2007) propose not sourcing from Asian countries if the company in question offers no skills or experience. The total cost approach is weak, and companies need to improve in the development of appropriate tools and frameworks (Platts and Song, 2010;Weber et al, 2010;Schiele et al, 2011).…”

Section: Industrymentioning

confidence: 99%

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Development of a risk-oriented strategic sourcing (ROSS) framework for the construction and electronics manufacturing industries

Kotula¹,

2014

Supply Management Research

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Strategic sourcing has increased in importance in recent years, and now plays an important role in companies' planning. The current volatility in supply markets means companies face multiple challenges involving lock-in situations, supplier bankruptcies or supply security issues. In addition, their exposure can increase due to natural disasters, as witnessed recently in the form of bird flu, volcanic ash and tsunamis. Therefore, the primary focus of this study is risk management in the context of strategic sourcing.The study presents a literature review on sourcing based on the 15 years from 1998-2012, and considers 131 academic articles. The literature describes strategic sourcing as a strategic, holistic process in managing supplier relationships, with a long-term focus on adding value to the company and realising competitive advantage. Few studies discovered the real risk impact and status of risk management in strategic sourcing, and evaluation across countries and industries was limited, with the construction sector particularly under-researched.This methodology is founded on a qualitative study of twenty cases across Germany and the United Kingdom from the construction sector and electronics manufacturing industries. While considering risk management in the context of strategic sourcing, the thesis takes into account six dimensions that cover trends in strategic sourcing, theoretical and practical sourcing models, risk management, supply and demand management, critical success factors and the strategic supplier evaluation.The study contributes in several ways. First, recent trends are traced and future needs identified across the research dimensions of countries, industries and companies. Second, it evaluates critical success factors in contemporary strategic sourcing. Third, it explores the application of theoretical and practical sourcing models in terms of effectiveness and sustainability. Fourth, based on the case study findings, a risk-oriented strategic sourcing framework and a model for strategic sourcing are developed. These are based on the validation of contemporary requirements and a critical evaluation of the existing situation. It contemplates the empirical findings and leads to a structured process to manage risk in strategic sourcing. The risk-oriented framework considers areas such as trends, corporate and sourcing strategy, critical success factors, strategic supplier selection criteria, risk assessment, reporting, strategy alignment and reporting. The proposed model highlights the essential dimensions in strategic sourcing and guides us to a new definition of strategic sourcing supported by this empirical study.

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Lean Supply Chain Management in Aerospace

Blokland

Santema

Curran

2010

Encyclopedia of Aerospace Engineering

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A recent trend in aerospace is that aircraft original equipment manufacturers (OEMs) such as Boeing, Airbus, Embraer, Eurocopter and for instance Dassault, are developing from a “production” orientated company towards “integrators of value.” Suppliers were already involved mainly with “built to print” activities, leaving most of the risk with the OEM. Today, the suppliers are involved with the co‐development of entire functions of the aircraft such as wings, fuselage, and stabilizers, which causes the production value to shift from the aerospace OEM towards the supply chain (SC) and network. The co‐development includes the investment in development for the specific aircraft function(s) by the suppliers. The aerospace OEM is in fact leveraging value on suppliers; this is what we call “value‐leverage.” The rational behind this value‐leverage approach is the reduction of supply complexity, which destines from lean manufacturing theories adopted from the automotive industry. Examples of Boeing B787 and Eurocopter show the approach of value‐leverage on the suppliers. The 3C value‐leverage model is found as an applicable method to measure value‐leverage effects in a network, from which suppliers are most important value drivers. Aerospace OEM companies are challenged to leverage value smart on the supply chain and network to make value to flow.

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Lean supply and price-based global sourcing — the interconnection

Cited by 50 publications

References 3 publications

Sourcing complexity in the Chinese manufacturing sector: An assessment of intangible factors and contractual relationship strategies

Sourcing complexity in the Chinese manufacturing sector: An assessment of intangible factors and contractual relationship strategies

Development of a risk-oriented strategic sourcing (ROSS) framework for the construction and electronics manufacturing industries

Lean Supply Chain Management in Aerospace

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