Suchergebnisse

AbstractTime and cost overruns are the prominent issues faced by mega construction projects. To minimize cost overruns for the projects, a stepwise approach is suggested for the formulation of a sustainable sourcing strategy. Initially, weights are derived for the existing suppliers using the analytic hierarchy process to select the best set of suppliers. Multiple conflicting variables are considered for deriving the weights. Based on the derived weights, the supply network cost optimization model is developed for optimal order quantity allocation to the selected suppliers to maximize total purchasing value (TPV). A multi‐objective weighted goal programming model is used to minimize deviations in the TPV. Finally, the full factorial design of the experiment concept is employed to identify the significant factors impacting deviations in TPV. The methodology developed is verified using a case study approach. Mega‐construction project organization case was considered for analysis. Demand for the product, materials procurement cost, quality, and supplier lead time are found to be the significant factors impacting deviations in TPV. The developed approach can provide valuable insights to practitioners for the formulation of a sustainable sourcing strategy.

Explores the factors that motivate companies to utilize offshore
sources or prevent them from doing so. One‐hundred‐and‐fifteen firms
representing 68 different industries were surveyed. The findings
indicate that buyers in the responding companies followed a more
traditional approach to purchasing, concentrating on a search for the
lowest cost source of supply. The ability to access and rely on a global
network of world‐class suppliers holds the key to competitiveness in
today′s environment.

ABSTRACTWe develop game‐theoretic models to study the sourcing strategy of an original equipment manufacturer (OEM) in the presence of a competing contract manufacturer (CCM). The OEM sells the product in a high‐quality brand and has three strategy options: producing the product in house or outsourcing production to either a CCM or a noncompeting contract manufacturer (NCM). At the same time, the CCM provides its own product in a low‐quality brand. We show that when the product qualities are exogenous, the OEM's sourcing strategy decision depends on the OEM brand's efficiency in producing and selling the product (the difference between quality and production cost), relative to that of the CCM brand. Interestingly, the OEM may prefer outsourcing to a CCM to soften price competition, even though this will mean a higher wholesale price; the CCM also prefers to produce for the OEM, even though its total demand may decrease. When the product qualities are endogenous, however, with quality competition, the OEM prefers either insourcing or outsourcing to an NCM to increase quality differentiation, depending on its cost disadvantage in producing the high‐quality product.

PurposeThe purpose of this paper is to develop a synthesised conceptual framework for global sourcing (GS) strategy and structure.Design/methodology/approachThe authors adopt a systematic literature review method and analyse through content analysis techniques 52 peer-reviewed journal articles focussed on GS strategy and structure. Based on these analyses, a conceptual model is developed.FindingsA synthesised construct of GS strategy, consisting of three dimensions, i.e., supply internationalisation, internal integration and external integration, is proposed. The GS structure construct is further broken down into structural design and control and coordination, consisting of three dimensions for each. Propositions for GS strategy, GS structure and, in particular, the relationships between them are developed for future empirical validation.Originality/valueThis is the first study which synthesises various dimensions of GS strategy and GS structure and advances/extends the theory of the strategy-structure nexus to a GS context. The conceptual model provides a comprehensive framework for future empirical work and opens avenues of research on this topic.

Posits that relationship marketing is often suggested as being the best approach to dealing with suppliers and customers. However, there may be situations where the costs or goals of the parties involved do not require or justify incurring the costs of building a relationship. Presents an empirical analysis of some of the costs that may affect perceptions of a relationship. The independent variables analysed include switching costs, buyer investments, seller investments, and the product's basis of competitive advantage. The dependent variables include perceptions of the relationship's value, its expected longevity, and the likelihood of future relationships. Indicates that there are market conditions where the cost of building a relationship may not be worth the investment costs.

PurposePrivate labels (PLs) have flowed into a wide range of categories and continue to expand especially in the mass channel. This paper aims to investigate the optimal PL sourcing strategy for a retailer and the impact of different sourcing strategies on the interaction between the upstream national brand (NB) manufacturer and the downstream retailer in a dyadic supply chain.Design/methodology/approachThe authors develop a game-theoretic model that allows for vertical differentiation, where a retailer may choose between two types of PL sourcing strategies, i.e. fringe and NB manufacturer sourcing (NBMS). Under fringe manufacturer sourcing, the procurement cost is low but the PL recognition is also low. There exists a group of loyal consumers who only choose the NB. Under NBMS, the procurement cost is high but the loyal consumers may switch between two products. The channel members engage in a three-stage sequential game and the authors analyze the subgame perfect equilibrium by comparing the retailer's best profits in the two subgames, i.e. fringe and NBMS.FindingsThe model shows that the retailer inclines to source from the NB manufacturer if the size of the loyal consumer group is relatively large, which provides a rationale for the existence of NBMS. It is also shown that the NB quality plays a positive role on NBMS. As the NB quality becomes higher, the retailer is more likely to procure the PL from the NB manufacturer instead of the fringe manufacturer. In addition, both channel members can be better off and more consumer surplus is provided by expanding the market under NBMS. Overall, sourcing from the NB manufacturer may improve channel profit, consumer welfare and social welfare.Originality/valueThe research contributes to explaining why the practice of sourcing PLs from NB manufacturers is widely adopted by retailers and can help retailers to make appropriate PL sourcing strategies under various circumstances.