Strategic sourcing for supply chain agility and firms' performance

K, Arif Khan; Pillania, Rajesh K.

doi:10.1108/00251740810920010

Cited by 92 publications

(89 citation statements)

References 59 publications

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“…Furthermore, this is in line with considering supplier audits, negative experiences of global sourcing, supply chain risks and supply security issues, which can be used to minimise risk exposure. In addition, Khan and Pillania (2008) provide evidence that strategic sourcing and supply chain agility impacts organisational performance. The companies tend to strengthen their relationships to avoid supply disruption and increase agility.…”

Section: Trends To the Companymentioning

confidence: 99%

“…In this research project, several companies highlighted that risks significantly influence the business strategy, and that, for instance, supply shortages caused longer lead The finding from companies where a serious risk event occurred is that risk management leads to a competitive advantage. Although these findings have been taken as a statement without any quantification, risk management has been proven to lead to a competitive advantage and better business performance (Walker, 1988;Clarke and Varma, 1999;Hallikas et al, 2004;Khan and Pillania, 2008) . These findings were disagreed with by the two companies that did not identify any competitive advantage.…”

Section: Impacts Of Risk Management On Competitive Advantagesmentioning

confidence: 99%

“…However, many companies are still planning to implement such a function, or simply have not established one. Given the significance of strategic sourcing to the company, its business performance or competitive advantage Khan and Pillania, 2008;Su et al, 2009), it is surprising that companies have not yet implemented it. Although some of the studies cover the US, Hong Kong or India, and different industries, the validity can be generalised through quantitative studies.…”

Section: Current Roles Of Strategic Sourcingmentioning

confidence: 99%

“…However, many companies and managers are aware of risks, but lack real implementation capabilities (Christopher et al, 2011). The mitigation of volatility can be achieved through improved planning/forecasting, collaboration and information exchange (Hallikas et al, 2004;Khan and Pillania, 2008), and the electronic exchange is recommended (Saeed et al, 2005). Finally, the application of supplier relationship management is supported (Khan and Pillania, 2008;Chiang et al, 2012), and the companies need to consider and identify their lock-in position and planning problems.…”

Section: Chapter Four -Findings Of Interviewsmentioning

confidence: 99%

“…Furthermore, sourcing personnel need to understand the strategic and operational options, particularly the changes in power, internal capabilities, market structures and bargaining power. Khan and Pillania (2008) present the key dimensions in strategic sourcing with empirical validation, where partnerships, flexibility, supplier selection and trust are essential.…”

Section: Strategic Sourcing Characteristicsmentioning

confidence: 99%

See 4 more Smart Citations

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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Section: Trends To the Companymentioning

confidence: 99%