Managing Value in Supply Chain – Case Studies on the Sourcing Hub Concept

California management review (Impact Factor: 1.67). 02/2014; 56(2). DOI: 10.2139/ssrn.1888756


In this paper, we postulate that a firm's sourcing knowledge can be a strategic resource for the firm, and explore how firms can capture and build on their sourcing knowledge. We examine the sourcing experiences of four firms in four different countries in the automotive industry, who are in the process of improving their supply-chain partnerships. We study upstream sourcing of these firms: their suppliers and their suppliers' suppliers, and focus on identifying the sourcing knowledge and sourcing cost related parameters with appropriate theoretical explanations. Synthesizing the learnings from these case studies, we propose the concept of the Sourcing Hub, a collaborative center involving the firm, its suppliers and raw material suppliers, as the principal alignment mechanism for managing value in upstream sourcing. Our research shows that deploying a sourcing hub can help firms create value by better management of upstream sourcing related knowledge and costs.

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Available from: Anupam Agrawal, Jan 19, 2014
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    ABSTRACT: Research in transport and logistics has primarily focused on vertical (e.g. customer-supplier collaboration), whereas horizontal collaboration between e.g. competitors, has received only limited attention (Vanovermeire et al., 2013). Literature on collaboration has emphasized motivations, opportunities, antecedents and outcome (Cruijssen et al., 2007), but researcher have paid far less attention to the developmental processes of horizontal collaboration, i.e. the process through which collaborations are initiated, formed, and operated (Das et al., 2002). Furthermore, an investigation of critical success factors such as shippers' willingness and motives, their challenges, the selection of partners and the role of the network broker in regard to the initiation and creation of horizontal collaboration have been largely neglected in previous logistic research. The purpose of this case study is therefore to bridge these gaps and investigate the critical success factors during the early development stages of a horizontal logistic collaboration. The research question guiding this paper is: RQ1: What can be learned about critical success factors during the early development stages of a horizontal logistic collaboration? This study contributes to theory generation suggesting a five-stage process for horizontal collaboration underlining the critical success factors during this process. Especially, the role of the network broker has been found essential for the successful creation of a horizontal collaboration. This study is an example of real-life collaboration between producers, which have resulted in the development of new green transport corridor. Therefore, this case provides valuable new learning about the process of creating a horizontal logistic collaboration.
    Full-text · Chapter · Sep 2014