Wednesday, March 19, 2014

Managing Value in Supply Chains Case Studies on the Sourcing Hub Concept

AGRAWAL Anupam, DE MEYER Arnoud, VAN WASSENHOVE Luk
Access the publisher's website
California Management Review 56, 2 (2014) 23-54

A firm's raw material sourcing knowledge can be a strategic resource. This article explores how firms can capture and use this knowledge. It examines the sourcing experiences of four firms in four different countries in the automotive industry and identifies the raw material sourcing knowledge-related parameters. Synthesizing the findings from these case studies, it proposes the concept of the sourcing hub—a collaborative center involving the firm, its suppliers, and raw material suppliers—which can effectively capture and deploy the raw material sourcing knowledge for managing value in upstream sourcing.