Strategic Sourcing: A Framework and a Case Study

Eric Sislian · Ahmet Şatır

90 citations0/0 files storedJournal of Supply Chain Management

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Outsourcing and Supply Chain Management Quality and Supply Management Sustainable Supply Chain Management

Abstract

SUMMARY A strategic perspective for insource/outsource decisions is provided for organizations whose competitive strategies are based on product differentiation and/or focus. The basic tenants of four previous frameworks for strategic sourcing from the literature are briefly reviewed. Following a critique of these frameworks, a new strategic sourcing framework is proposed. Elements of the frame‐work are discussed in terms of primary factors (competitive advantage and demand flexibility) and secondary factors (process capability, process maturity, and strategic risk). A decision flowchart incorporating these factors is given to illustrate the functioning of the proposed framework. Implementation issues are discussed using a case study wherein two products from an electronics equipment manufacturer are subjected to sourcing decisions using the framework.

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References

1998Purchasing and Supply Management: Trends and Changes Throughout the 1990s 2009The Core Competence of the Corporation 1994Strategic Purchasing: A History and Review of the Literature 1995Global Disaggregation of Information-Intensive Services 2021Strategic Outsourcing 1992Strategic sourcing: a progressive approach to the make-or-buy decision 1996Purchasing and Supply Management: Future Directions and Trends 1988Strategic Sourcing, Vertical Integration, and Transaction Costs

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