Abstract
Purpose: This paper aims at investigating the reasons for the complex and long lead time from global suppliers that causes inventory shortages. It focuses on supply chain risk management in global sourcing. This study has revealed all the specific risks of a global sourcing project and has provided some solutions for risk management: three-step risk management, safety stock, data sharing and driving supplier performance.Design/methodology/approach: A qualitative study is conducted to propose concrete recommendations on three topics: risk management, safety stock and information sharing. A semi-structured survey-guided interview was used to collect related data, and the answers were assessed using syntactic, lexical, thematical and NVivo software analysis.Findings: This study has revealed all the specific risks of a global sourcing project and has provided some solutions for risk management: three-step risk management, safety stock, data sharing and driving supplier performance.Originality/value: Through research work, we have noticed that the world of the Supply Chain is constantly evolving and that it is becoming more and more complex. Through these interviews, we have noticed that the role of purchasing is changing differently in each sector.
Highlights
In the current business environment, manufacturing companies should be increasingly competitive and flexible (Lahiani, Hani, Triki & El Mhamedi, 2014)
We focus on the risk management in global sourcing: how to identify and reduce risks
The unsuccessful projects can be linked to isomorphic phenomena: projects were started with a congenital defect
Summary
In the current business environment, manufacturing companies should be increasingly competitive and flexible (Lahiani, Hani, Triki & El Mhamedi, 2014). Several companies have been trying to improve their competitiveness by implementing a global sourcing strategy (Ivanov, Tsipoulanidis & Schönberger, 2017). This approach does not seem to be fully effective, as the long lead time from overseas manufacturers involved in global sourcing risks causing potential inventory shortages. This context leads to a complexity of replenishment flows and heightened need for risk management in supply chains.
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