A supply hub is a location generally close to a manufacturer’s facility where all or some of its supplies are warehoused with the agreement that the materials will be paid for only when consumed. Supply hub is an innovative strategy employed by especially the electronics industry to achieve cost reduction and improved responsiveness. After ﬁrst tracing the developments leading to the establishment of supply hubs, the paper then describes the dynamics of the operation of supply hubs. Case examples are provided to highlight the current practices. Finally, some research issues are identiﬁed.
Supplier Owned Inventory, Vendor Managed Inventory, Postponement of procurement, responsiveness
Computer Sciences | Management Information Systems
Information Systems and Management
Barnes, Earl; DAI, Jim; DENG, Shijie; Down, Doug; GOH, Mark; LAU, Hoong Chuin; and Moosa, Sharafali.
On the Strategy of Supply Hubs for Cost Reduction and Responsiveness. (2003). 1-27. Research Collection School Of Information Systems.
Available at: http://ink.library.smu.edu.sg/sis_research/1161
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.