Strategic Sourcing Research Articles

Engaging with ‘Engineer for Supply Chain’ (EfSC): insights from two engineer-to-order manufacturers

The practice of ‘Design for Supply Chain’ (DfSC) aims at integrating strategic sourcing into manufacturers’ new product development (NPD) processes. The literature on this topic, however, mainly focuses on contexts involving high-volume, standardised products, while the engineer-to-order (ETO) context has received only limited attention. As argued in this paper, this constitutes a gap in the literature since the findings from high-volume, standardised contexts may not be directly applicable to the ETO context. To support this claim, a case study approach is used to explore DfSC in two ETO manufacturers. This paper terms this practice ‘Engineer for Supply Chain’ (EfSC) and identifies four dimensions that it comprises: (1) consideration of strategic sourcing in NPD, (2) representation of the sourcing function in NPD, (3) collaboration between the R&D and sourcing functions, and (4) adoption of methods for considering strategic sourcing in NPD. Although these dimensions partly overlap with the literature on DfSC, the characteristics of EfSC differ—most notably by requiring the consideration of strategic sourcing before the product design stage of NPD, as well as procedures that encourage this consideration. Finally, the study identifies relationships among the dimensions and develops a holistic four-step process for engaging with EfSC.

Fostering supply chain agility by prominent enablers’ identification and developing conceptual modeling based on the ISM-MICMAC approach

PurposeToday’s marketplace has witnessed intense competitive pressures and high levels of uncertainty and disruption. Therefore, supply chains require agility to obtain a sustainable competitive advantage and cope with uncertainties as well as disruptions. Although a wide range of studies exists on supply chain agility (SCA) from the perspective of antecedents or consequences, there is little research on the investigation of enablers of SCA and their relations among them. Furthermore, the literature has investigated proactive and reactive enablers for enhancing SCA, but most studies have not sufficiently framed their analysis of both aspects synchronically. This paper aims to find out the interrelationships among the proactive and reactive enablers for enhancing SCA.Design/methodology/approachAn extensive literature review has been conducted to identify SCA enablers and a Delphi study has been performed to elucidate SCA enablers in the manufacturing industry in Turkey. Interpretive structural modeling (ISM) has been used to identify the contextual relationship among the SCA enablers, and the model has been validated based on Matriced Impact Croises Multiplication Appliquee a un Classement (MICMAC) analysis.FindingsOn theoretical and practical levels, the proposed ISM model in this study can help organizations analyze and interpret interrelationships among enablers of SCA. For managers, it can provide better insights and understanding of the facilitators of SCA to enhance the effectiveness of the supply chain and cope with uncertainties and turbulence. According to results, enhancing “supply and demand side competency”, “delivery speed” and “strategic sourcing” are the most significant enablers of SCA.Originality/valueThe study extends the existing literature related to the enablers of SCA by modeling the proactive and reactive enablers of SCA based on the Al Humdan et al. (2020) classification. Arranging the enablers of SCA in a hierarchy and classifying the enablers into different levels with the help of the ISM-MICMAC approach is an exclusive effort to achieve successful management of the supply chain.

Analysis of global brands’ green procurement strategy: Co-opetitive local sourcing vs. overseas sourcing under delivery disruption

Recently, black swan events, such as the Covid-19 pandemic and the Russia-Ukraine war, have caused disruptions for the local brand with overseas procurement (BOP) who traditionally purchase remanufactured components globally. This induces the BOP to find a local alternative supplier, although the remanufactured components without supply disruption can be of high price, and the local supplier has a self-branded business. In this paper, we consider a BOP's strategic sourcing decisions from a local supplier with self-branded end products (LSP) who sells remanufactured components. We focus on the BOP's incentives toward such a “co-opetitive” relationship and the LSP's willingness to sell remanufactured components to the BOP. We find that having two suppliers may induce a component price war but the component price will not become too low when the probability of overseas supply disruption is high. Interestingly, we find that the BOP will allocate a low proportion of component purchasing orders to the LSP when it faces a high probability of overseas supply disruption. In contrast, the LSP has the incentive to sell remanufactured components to the BOP when the probability of overseas supply disruption is in a moderate range. If the BOP's remanufactured component quality requirement is high, or the probability of overseas supply disruption is low, the LSP might even have a profit loss when selling components to the BOP.

Banks’ Strategic International Expansion: Evidence from Africa

This study identified the strategies adopted by banks in Africa to gain access to international markets and why banks establish foreign operations. Twenty-two African banks were selected to examine the entry mode and number of foreign outlets. The study affirmed that most African banks expanded their operations internationally via acquisitions and strategic alliances. At the same time, the motive for expansion is linked to market development to serve customers operating in overseas markets, government policies, and strategic knowledge sourcing. Furthermore, some reasons identified include expanding operations, defensive expansion, and protecting existing bank client relations. The study recommends that African banks should strive to adapt different internationalisation strategies primarily driven by their desire to gain knowledge.

Public Procurement Strategy and Performance of Murang’a County Government, Kenya.

This study was a cross-sectional study that explored to establish the influence of procurement strategy on performance of County Governments. The guiding specific objectives were strategic sourcing strategy, risk management strategy, negotiation strategy and e-procurement strategy. The theories related to the study were strategic choice theory, principal-agency theory and institutional theory. Further, the study adopted a conceptual framework to show causal relationship between independent and dependent variable. Independent variables are strategic sourcing, procurement planning, contract management and e-procurement which were shown have a causal relationship with the performance of County Governments as the dependent variable. The study adopted descriptive research design. Simple random sampling was adopted to select research participants. A sample size of 85 staff from the county government was sampled randomly using the simple random sampling technique from the total population of staff. The study used both primary and secondary data. The main instrument for data collection was structured questionnaire administered by the researcher. Quantitative data collected was checked for completeness, analysed through statistical analysis for social sciences version 23. Findings of descriptive statistics was presented in form of frequency tables and percentages. A pilot test was conducted before the main study to determine potential weaknesses in the data collection tool through validity and reliability test. The inferential statistics include Pearson’s correlation and regression analysis. The study findings indicated that strategic sourcing strategy, risk management strategy, negotiation strategy and e-procurement strategy have a positive and significant association with the performance of County Governments in Kenya. This implies that public procurement strategy and performance change in the same direction. The study found out that the county government in Kenya have not embraced public procurement strategy for effective performance. Further, the recommendations for improving public procurement strategy include reviewing contracts, enhancing supplier relationship management, conducting pre-screening of suppliers, maintaining compliance with regulations, updating risk management strategies, emphasizing negotiation for fair prices, improving post-negotiation follow-up, and strengthening the integration and security of e-procurement systems. These measures aim to enhance performance, supplier partnerships, efficiency, compliance, risk management, and coordination in the procurement process.

Sourcing third party logistics service providers based on environmental, social and corporate governance: a case study

The acronym ESG, environmental, social and governance, emerges as a strong trend in the era of the circular economy and stands out as a need for companies to respond to the segment in which they operate. Although most studies have been done in the past, they did not address ESG criteria to ensure operator exemption for logistics providers. Further research on the application of realistic circular economy techniques is recommended. Therefore, strategic sourcing, based on multicriteria decision analysis (MDA), considering parameters such as economic, technical, and environmental factors, has created a perfect methodology that considers all these essential requirements, revealing an excellent way to outsource logistics service providers (LSPs). The article aims to prove MDA’s effectiveness awarding the best LSP through predefined dimensions involving human resources, risk management, environmental and other social aspects, indicating dedication and commitment to social environmental issues and corporate governance during a procurement’s strategic sourcing in a Brazilian pharmaceutical company process. A Literature review supported by a real case study where a multifunctional team from Pharmaceutical and Consultants proved the objective was valid. A secondary objective was demonstrated on how current sustainability challenges can be overcome by the organization and generate value for its stakeholders and society, showing responsibility and commitment to environmental, social, and corporate governance issues. After reviewing all the concepts involved using the literature review, the results were achieved indicating that sourcing process’ case study through MDA validated the effectiveness choosing the 3PL with the best results in ESG. The article deals with a current, relevant, and not very explored topic and may contribute to enhancing the investments of logistics service providers (LSPs) in ESG, mainly those that weren’t awarded at end of the project.

TOWARD GOOD PRACTICE OF SUPPLY CHAIN MANAGEMENT A COMMUNITY SERVICE AT SUSU MBOK DARMI BOGOR INDONESIA

Delivering a supply chain good practices might ensure goods and services reach consumers using the means and methods readily available in the workplace environment. To achieve a good supply chain management, it is a need to come across an excerpt of delivering the right product, in the right quantity, to the right people, at the right place and time, at the lowest possible cost. Good supply chain management is indeed required by any services industry such as commercial drinks services outlet. Susu Mbok Darmi provides commercial various milk drinks outlet, located at modern location, like mall and individual outlet location. A community service to enhance the knowledge toward good supply chain management was conducted to Susu Mbok Darmi team in particular its supply chain, purchasing and operation department. The activity was done in the form of workshop based on the preliminary observation and in-depth interview to identify the problem of current supply chain management. The result of this community service was an additional knowledge of best practice toward good supply chain management. Participants were successfully learned about the role of Procurement versus Purchasing, Strategic Sourcing, Contract Management and Materials Inventory Management

System Dynamics and Sustainable Solution: The Case in a Large-Scale Pallet Manufacturing Company

The proposal in the present research study is the result of a more than two-year process developed in a pallet manufacturing company for anchor enterprises in Southern Sonora, Mexico dedicated to beer production and export to the United States of America. Considering the high pallet demand for this supplier, a strategic plan was created in 2021, establishing an important project for developing technological solutions to improve decision making supported by graphical user interface and focused on sustainability. This study shows the application of system dynamics in all the wood and pallet manufacturing processes with a strategic sourcing supply chain. The method used for its development had the following stages: (1) developing the mapping process; (2) creating the causal loop diagram; (3) developing a flow and stock model with the representing mathematical equations; (4) simulating and validating current scenarios; (5) evaluating normal, optimistic, and pessimistic scenarios with multicriteria decision making using Technique to Order Preferences by Similarity and the Ideal Solution (TOPSIS) and Faire Un Choix Adéquat (FUCA); (6) building the graphical interface. The most relevant results for the company were having quantitative information regarding the pallet demand required by the main client for wood availability, which was the main restriction in the supply chain. The solution was based on four validation tests that allowed decision makers to support the production proposals considering the assistance of the dynamic models. The main conclusion demonstrated that using well-defined operation rules and policies—considering the installed capacity and pallet demand through the model solution—allows anticipating decisions on pallet quantity and reducing the risk of out-of-time deliveries.

The Leader Medical Audit in Hospital Routine Resource

The 2017 annual review in several health sectors highlighted the importance of medical auditing, based on the analysis of accounts, extensions with pertinent discussions between external and internal auditor, concurrent audit, using medicine based on evidence to reduce costs and guarantee the quality of services provided. The article is justified by the scarcity of academic studies that link Health Economics with the implementation of internal audits, as it is a subject little explored by scientific research yet. The study consists in bibliographic research on the most recent publications that address the theoretical and practical concepts related to the implementation of Strategic Sourcing programs in the field of health in large hospitals of high and medium complexity. It is necessary to define the role of the health auditor as the professional who will help managers to see the medical bill based on the value in health and not only in the cut in hospital expenses. Studies of the possible outcomes aimed at comprehensive health care, auditors are required to control costs. This information helps in the search for the most effective way to meet specific needs in terms of service, focusing on maximising human and material resources available.

THE HALAL PURCHASING STRATEGIES ON MANUFACTURING PERFORMANCE

Abstract 
 Purpose – The purpose of this study is to introduce a new framework to optimize the design of halal purchasing strategies towards the manufacturing industries performance.
 
 Design/methodology/approach – The study utilizes large group of executives and managers in the purchasing and supply chain department from manufacturing firm in Malaysia.
 Findings – The finding shows that the purchasing strategies (effective negotiation, collaborative relationship and interaction, effective cost management, supply base management, and strategic sourcing management) and halal policy (responsibility, scope, assurance, and method of assurance) determine the manufacturing purchasing performance. More empirical research is needed to further refine the Halal Purchasing Strategies for different product–market combinations. Second, conduct qualitative research to various industries.
 
 Research limitations/implications – This research shows that halal purchasing strategies is different from conventional purchasing method, which requires a halal policy and specific design parameters for effective negotiation, collaborative relationship and interaction, effective cost management, supply base management, and strategic sourcing management.
 
 Originality/value – The halal purchasing strategies can be an important instrument to design and manage halal purchasing in extending halal integrity from source to point of consumer purchase. It could be implemented as a practice mediating the impact on manufacturing performance in order to remain competitive in the challenging and competitive business environment.

A Study of the Indian Automobile Industry's Strategic Sourcing from a Risk Management Perspective

A Study of the Indian Automobile Industry's Strategic Sourcing from a Risk Management Perspective

Guest editorial: Impact of COVID-19 on strategic sourcing decisions and business performance

Guest editorial: Impact of COVID-19 on strategic sourcing decisions and business performance

Improving supplier performance and strategic sourcing decisions by integrating jobshop scheduling, inventory management and agile new product development

PurposeThe purpose of this study is to improve supplier performance and strategic sourcing decisions by integrating jobshop scheduling, inventory management and agile new product development. During the COVID-19 pandemic, the organizations have struggled a lot to maintain the supplier performance and strategic sourcing decisions in the organizational benefit. However, in this context, the organization’s agile new product development (ANPD) process must be aligned with this requirement by maintaining the inventory and jobshop scheduling. As a result, identifying ANPD indicators, performance metrics and developing a structural framework to guide practitioners at various stages for smooth adoption is essential to improve the overall performance.Design/methodology/approachA comprehensive literature review is conducted to identify jobshop scheduling, inventory management and ANPD indicators along with the performance metrics, and the hierarchical structure is developed with the help of expert opinion. The modified stepwise weight assessment ratio analysis (SWARA) and weighted aggregated sum product assurance (WASPAS) techniques, along with expert judgement, are used in this study to calculate the weights of the indicators and the ranking of the performance metrics.FindingsAs per the weight computation by SWARA method, the strategy indicators have the highest relative weight, followed by the product design indicators, management indicators, technical indicators, supply chain indicators and organization culture indicators. According to the ranking of performance metrics obtained through WASPAS, the “frequency of new product development is at the top”, followed by “advances in product design and development” and “estimated versus actual time to market”.Research limitations/implicationsIt is believed that the framework developed will help industrial practitioners to plan effectively to improve supplier performance. The indicators identified may guide the ANPD penetration, and performance metrics may be useful for evaluation and comparison.Practical implicationsThe outcomes of the present study will be extremely beneficial for the industry practitioners to improve the supplier performance. The indicators identified may guide the ANPD penetration, and performance metrics may be useful for evaluation and comparison.Originality/valueA unique combination of modified SWARA–WASPAS technique has been used in this study which would be beneficial for organizations willing to adopt the jobshop scheduling and inventory management and ANPD for improving supply chain performance.

Strategic Procurement Planning and Service Delivery of County Governments in Western Kenya Region

Ensuring the provision of public services in Kenya necessitates public expenditure through the procurement of goods, works, and services; therefore, the integrity of the entire process from procurement to delivery of goods, works, and services and their use portrays the strength of proper management of public resources and fidelity to the Kenyan constitution. Yet, because there is misuse of public monies in the majority of the Counties and an alleged 50% of it is tied to the public procurement processes used, corruption has been identified as a significant barrier to socio-economic growth in Kenya. The study's primary goal was to ascertain how County Governments in the Western Kenya Region's service delivery were affected by strategic procurement planning. The Mc Kinsey 7sframework model was used as the study's framework and positivist research methodology was used throughout. The study was carried out in the counties of Kakamega, Busia, Vihiga, and Bungoma in western Kenya. The 228 officials that made up the study's target population were divided into chief officers, directors, finance officers, and procurement officers.174 respondents were chosen from a sample using stratified random selection in the study. Via a questionnaire and interview schedules, primary data was acquired. A pilot study was conducted to evaluate the reliability and validity of the research instruments. The study utilized both descriptive and inferential statistics. The findings of the study established that Strategic Procurement Planning significantly accounted for 40.5% of the variance in Service Delivery of County Governments in Western Kenya (R²=0.405, P<0.05). Specifically, when Strategic Procurement Planning increases by one unit, service delivery changes by 0.636 units (β1=0.636, P<0.05). As a result, the F test resulted in a value of (1, 161) =108.908, P<0.05, supporting the model's ability to explain variance in the dependent variable. Among county governments in the western Kenya region, there is a large and favorable correlation between strategic procurement planning and service delivery. The analysis suggests that county governments ensure that strategic sourcing strategies are fully implemented and that they are produced in a reasonable timeframe because they are essential for initiating service delivery.

A changing supply chain for a changing health care system: Barriers and facilitators of implementing enterprise resource planning.

No studies have examined how health care mergers and acquisitions affected the hospital supply chain and its employees since the passing of the Patient Protection and Affordable Care Act. To describe the barriers and facilitators of digital transformation in a hospital supply chain from the employee perspective. We conducted two rounds of interviews, one year apart, with supply chain employees at an urban academic health system preparing to adopt an enterprise resource planning (ERP) software (N = 11 in Round I and N = 8 in Round II). Two researchers coded transcripts for themes using NVivo 11. We identified the following barriers to technology integration: silos between supply chain groups (e.g. Purchasing, Information Management, Strategic Sourcing), between employees and management, and resulting from prior mergers; focus on short-term problems and fear of change; and lack of transparent communication about upcoming changes. Facilitators of technology integration included motivation to work in supply chain; long-term vision that allowed tolerance of change and positive outlook; and transparent communication. Desire for shared leadership among employees emerged as a major theme, indicating the need for active involvement of employees during transition to new integrative technology.

Rethinking strategic sourcing during disruptions: A resilience‐driven process contribution to knowledge on supply chains

AbstractThis paper aims to present a structured perspective regarding the strategic sourcing process with the aim of enhancing supply chain resilience during disturbing events. For this purpose, it uses a descriptive approach, based on theoretical insights in order to provide a detailed strategic sourcing process, which adopts a risk‐based orientation. Each of the five main steps of the strategic sourcing process that are identified have aspects related to the supply chain resilience that need to be taken into consideration on the sourcing decision‐making. The framework that is presented provides relevant insights regarding on how to effectively conduct the strategic sourcing process with the prescription that decision‐making needs to be transparent. It is hoped that the constructs presented in this paper encourage researchers to conducting empirical studies in order to obtain evidence related to the strategic sourcing process and its relations with supply chain resilience. The proposed framework of this paper, can also potentially support practitioners involved in the procurement and strategic sourcing activities by providing an effective guidance as to how to appropriately engage in decision‐making with respect to strategic sourcing. The approach proposed is unique, bringing a timely and novel approach by relating strategic sourcing with supply chain resilience during disturbing events.

Strategic sourcing and performance of milk processors in Kenya

Strategic sourcing and performance of milk processors in Kenya

Strategic Information System Sourcing in the Presence of Regulatory Pressures: The Case of Electronic Health Record Systems

Strategic Information System Sourcing in the Presence of Regulatory Pressures: The Case of Electronic Health Record Systems

COVID-19 turbulence and positive shifts in online purchasing by consumers: modeling the enablers using ISM-MICMAC analysis

PurposeSuppliers and marketers have started planning toward postpandemic scenarios where logistics and retail will happen in a new way with the help of technological advances. This shift means new challenges for manufacturers, suppliers and retailers, and there is a need for strategic sourcing decisions for a robust supply chain system, logistics and on-time delivery system, as consumers have shown a positive change in online buying behavior. Furthermore, with digital transformation, customers are expected to not return to traditional buying. Hence, it becomes essential to identify the factors acting as enablers of online purchase behavior for sustainable digital business. This study aims to analyze the positive shifts in online purchasing by consumers, identify and model the enablers of positive transformations in online purchasing by consumers.Design/methodology/approachThe interpretative structural modeling (ISM) technique is used to draw the interrelationships among the variables and their impact on online buying. A context-oriented relationship among the factors has been set up through the expert opinion technique. A total of 40 specialists have been approached for this. ISM with Matrice d’impacts croisés multiplication appliquée á un classment (MICMAC) analysis was used to prioritize these drivers, identify the most critical factors and establish a driver-dependence relationship among these drivers.FindingsSeveral significant categories of enablers like health, trust, convenience, work from home, referral buying, panic purchase and overstocking possess a strong influence on the shift to online due to the pandemic. The results will help the policymakers, suppliers, retailers, managers and practitioners with insights to plan, prepare for challenges and make decisions toward preparation and shifting to the emergent digital world. In addition, the study provides academicians scope for further research in the related area.Research limitations/implicationsConsumer behavior significantly impacts retail and supply chain business, as it is an interface with the customer and links between a manufacturer and a customer. This study provides an insight into the shift in purchase behavior which can help suppliers in this transition phase to be better prepared for tomorrow to achieve sustainable competitive advantage.Originality/valueThis study assists practitioners and researchers in understanding the interrelationships among the factors using ISM-MICMAC analysis in a realistic way rather than daydreaming with overambitious goals.

Optimization of Supply Chains and Service Delivery in Selected Ugandan Charitable Organizations

Purpose: This study aims to determine how supply chain optimization affects service delivery in a few Ugandan charitable organizations. Methodology: The study employed a descriptive design and a census survey sample approach because it was just 28 people in the population being studied. A self-administered questionnaire containing both open-ended and closed-ended questions was used to collect the data. All quantitative variables were estimated using descriptive statistics, such as percentages, means, standard deviations, and frequencies. The data was collected, analyzed using multiple regressions, and then displayed as tables and graphs. Results: The study's conclusions showed that supply chain optimization has a significant impact on how well certain Ugandan humanitarian organizations deliver their services. The majority of supply chain optimization's components, including transportation and distribution, depend on technology to operate at their best, according to the study. Conclusion: Service delivery was found to have a favorable and statistically significant link with inventory management, strategic sourcing, and technology. Recommendation: The report suggests that humanitarian organizations integrate supply chain operations utilizing technology to increase efficiency and accountability and to develop the skills of their human resources to meet the difficulties of the contemporary supply chain.