Strategic sourcing: benefits, problems and a contextual model

Jennings, David

doi:10.1108/00251740210413334

Cited by 94 publications

(69 citation statements)

References 30 publications

(38 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…However, the competitive advantage and its long-term impact must be considered and verified in a longitudinal study. Jennings (2002) developed a model based on literature, which supports the outsourcing decision and focuses on concerns such as the impact on competitive advantage, costs or the supply market with a long-term focus CHAPTER TWO -LITERATURE REVIEW -51 -and a potential market change. Although the model was not tested, there is still a risk in a mid-term perspective when suppliers can become competitors (Rossetti and Choi, 2005).…”

Section: Make-or-buy (In-or Outsourcing) Decisionsmentioning

confidence: 99%

“…In their model, the authors raise several points, including whether the component is strategically core or non-core, the costs to make vs. buy, capital spend/investments and supplier and resource availability. Jennings (2002) develops a model to support outsourcing decisions in qualitative studies. A make-or-buy decision should be based on an assessment of the impact on competitive advantage, competitive environment, capability, cost, supply environment and technologies.…”

Section: Make-or-buy (In-or Outsourcing) Decisionsmentioning

confidence: 99%

See 1 more Smart Citation

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

Kotula¹,

2014

Supply Management Research

View full text Add to dashboard Cite

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.

show abstract

Section: Make-or-buy (In-or Outsourcing) Decisionsmentioning

confidence: 99%

Section: Make-or-buy (In-or Outsourcing) Decisionsmentioning

confidence: 99%

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

Kotula¹,

2014

Supply Management Research

View full text Add to dashboard Cite

show abstract

“…Other risks of strategic alliances referenced in literature are: loss of corporate knowledge (Rossetti & Choi, 2005), switching costs (Olorunniwo & Hartfield, 2001), decreased competition, and information sharing (Jennings, 2002).…”

Section: Supplier/buyer Relationshipsmentioning

confidence: 99%

Defense Travel System (DTS) Airline Ticket Price Analysis: Do DTS Ticket Prices Differ From Other Online Tickets Available for Naval Postgraduate School Travelers

Copeland¹,

Mazza²

2007

View full text Add to dashboard Cite

Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188) Washington DC 20503.

show abstract

“…As per one of the survey conducted in 2005, around 37% of the respondents accepted that cost reduction is one of the prime factors as compared to 32 % in 2004 (www.towersperrin.com). Outsourcing decisions commonly target a minimum of 15 per cent cost saving and sometimes in the range of 20-25 per cent (Jennings, 2002;Bounfour, 1999).…”

Section: Exhibit:mentioning

confidence: 99%