Publication Type
Journal Article
Version
acceptedVersion
Publication Date
3-2014
Abstract
In this paper, we explore how firms can better manage their sourcing by developing relationships not only with their suppliers but also with their suppliers' suppliers. We detail an empirical case study explaining how the firm developed relationships with its suppliers and raw material suppliers via a collaborative center, the sourcing hub. We then analytically model the scenarios encountered in our empirical work and examine two facets of upstream sourcing under uncertain demand scenarios: (a) firms can supply raw material directly to their suppliers, and this may be beneficial for the firm and its suppliers; and (b) firms can bring their suppliers together at the sourcing hub, and the resulting cooperation between suppliers is beneficial for the suppliers and the raw material suppliers. Overall, our work explores the market and economic conditions under which active management of upstream sourcing can add value to supply chains.
Keywords
sourcing hub, raw material sourcing, supplier network
Discipline
Operations and Supply Chain Management
Research Areas
Operations Management
Publication
Manufacturing and Service Operations Management
Volume
16
Issue
2
First Page
238
Last Page
250
ISSN
1523-4614
Identifier
10.1287/msom.2013.0461
Publisher
INFORMS
Citation
AGRAWAL, Anupam; VAN WASSENHOVE, Luk N.; and DE MEYER, Arnoud.
The Sourcing Hub and Upstream Supplier Networks. (2014). Manufacturing and Service Operations Management. 16, (2), 238-250.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/4119
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1287/msom.2013.0461