Sourcing from outside – six managerial challenges

Abstract

Purpose As companies become more aware of their role in the business network and their own value contribution hereto, the question of the companies’ sourcing strategy and use of suppliers has simultaneously come more and more into focus of their decision making. The purpose of this paper is to describe some managerial challenges on the sourcing side, which companies must address in order to be able to act appropriately in relation to their own role and the cooperation with others in the network. The paper aims to focus on managerial implications of deliberate strategic sourcing. Design/methodology/approach Based on empirical observations, discussions with managers, and previous research the paper discusses six significant strategic managerial challenges that companies must address in their quest to form their role in the network. Findings Strategic sourcing is not a stand alone activity, but an activity impacting the whole network. The paper pinpoints how important it is to address the raised managerial challenges when relationships are to be terminated, maintained or developed. Originality/value The paper helps managers to navigate and focus in discussing their strategic sourcing process.

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