A firm’s raw material sourcing knowledge can be a strategic resource. This article explores how firms can capture and use this knowledge. It examines the sourcing experiences of four firms in four different countries in the automotive industry and identifies the raw material sourcing knowledge-related parameters. Synthesizing the findings from these case studies, it proposes the concept of the sourcing hub—a collaborative center involving the firm, its suppliers, and raw material suppliers—which can effectively capture and deploy the raw material sourcing knowledge for managing value in upstream sourcing.
Case Study, Sourcing, Supply Chain, Sourcing Hub
Operations and Supply Chain Management
California Management Review
University of California
Agrawal, Anupam; De Meyer, Arnoud; and Van Wassenhove, Luk.
Managing Value in Supply Chains: Case Studies on the Sourcing Hub Concept. (2014). California Management Review. 56, (2), 23-54. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/3788