Strategic sourcing model for green supply chain management: an insight into automobile manufacturing units in India

PurposeSupplier selection (SS) is one of the prime competencies in a sourcing decision. Taking into account the key role played by suppliers in facilitating the implementation of green supply chain management (GSCM), it is somewhat surprising that very little research attention has been imparted to the development of a strategic sourcing model for GSCM. This research aims to develop a strategic sourcing framework in which supplier organizations are prioritized and ranked based on their GSCM performance. Accordingly, the benchmark organization is identified and its strategy is explored for GSCM performance improvement.Design/methodology/approachThe research develops an innovative GSCM performance evaluation framework using six parameters, namely, investment in corporate social responsibility, investment in research and development, utilization of renewable energy, total energy consumption, total carbon-di-oxide emissions and total waste generation. An integrated multicriteria decision-making (MCDM) approach is proposed in which the entropy method calculates criteria weights. The Complex Proportional Assessment (COPRAS) and the Grey relational analysis (GRA) methods are used to rank supplier organizations based on their performance scores. A real-world case of green supplier selection (GSS) is considered in which five leading India-based automobile manufacturing organizations (Supplier 1, Supplier 2, Supplier 3, Supplier 4 and Supplier 5) are selected. Surveys with industry experts at the strategic, tactical, and operational levels are carried out to collect relevant data.FindingsThe results reveal that total carbon dioxide emission is the most influential parameter, as it gains the highest weight. On the contrary, investment in research and development, and total waste generation have no significant impact on GSCM performance. Results show that Supplier 5 secures the top rank. Hence, it is the benchmark organization.Research limitations/implicationsThe proposed methodology offers an easy and comprehensive approach to sourcing decisions in the field of GSCM. The entropy weight-based COPRAS and GRA methods offer an error-free channel of decision-making and can be proficiently used to outrank various industrial sectors based on their GSCM performances. This research is specific to the automobile manufacturing supply chain. Therefore, research outcomes may vary across supply chains with distinct characteristics.Practical implicationsThe basic propositions of this research are based on a real-world case. Hence, the research findings are practically feasible. The less significant parameters identified in this study would enable managers to impart more attention to vulnerable areas for improvement. This research may help policymakers identify the influential parameters for effective GSCM implementation. As this research considers all aspects of sustainability, the strategies of the benchmark supplier have a direct impact on organizations' overall sustainability. The study would enable practitioners to make various strategies for GSCM performance improvement and to develop a cleaner production system.Originality/valueThe originality of this research lies in the consideration of both economic, social, environmental and operational aspects of sustainability for assessing the GSCM performance of supplier organizations. Quantitative criteria are considered so that vagueness can be removed from the decision. The use of an integrated grey-based approach for developing a strategic sourcing model is another unique feature of this study.

ESTRATÉGIA NA CONTRATAÇÃO DE MÃO DE OBRA ESPECIALIZADA DE UMA EMPRESA DO SETOR DE SUCOS

Este estudo tem como ambiente o setor de suprimentos de uma empresa produtora de sucos. Este setor tem passado por diversas mudanças ao longo dos anos, dentre elas a ampliação de um setor de compras para o de exercer o desenvolvimento de função estratégica, gerenciando recursos e buscando o aumento de competitividade, que por sua vez tornou as compras a serem recursos de valores agregados. Neste cenário, fornecedores de bens e serviços impactam positiva ou negativamente na cadeia de valor da empresa. Este estudo tem como objetivo demostrar, que por meio de estratégias de contratação de serviços, utilizando a Strategic Sourcing, como a empresa executa a compra de serviços elétricos para unidades em diferentes cidades do Estado de São Paulo. Os resultados demonstraram que com o Strategic Sourcing é possível reduzir custos, aferindo ganhos na redução do preço de compra, ter serviços de qualidade e excelência, diminuir a base de fornecedores e simultaneamente melhorar o nível de qualidade e serviço entregues, auxiliar na eficácia do processo produtivo e otimizar a contratação. Conclui-se que a metodologia é eficiente na gestão de compras de serviços, promove integração interna e compartilhamento de informações e principalmente agiliza as negociações da cadeia de suprimentos.

Impact of the strategic sourcing process on the supply chain response to the COVID-19 effects

PurposeThis research investigates the impact of the strategic sourcing process on the supply chain response to COVID-19. The paper presents practitioners' perspectives (experts in supply chain management, especially involved in the procurement field) on the strategic sourcing process's impact on the supply chain response.Design/methodology/approachThe study follows a survey-based approach for data collection. It uses a descriptive survey methodology where questions related to the impact of the strategic sourcing process on the supply chain response in the face of the coronavirus pandemic were explored by practitioners.FindingsIn total, 130 valid responses were obtained. The results showed that the majority of respondents agreed or strongly agreed that strategic sourcing positively impacts the supply chain response amid the COVID-19 effects. Also, for the five phases of the strategic sourcing process, the majority of respondents considered them as a high and very high impact on the supply chain response.Research limitations/implicationsThis paper provides timely insights for practitioners and academics, especially those involved in the supply chain management area, showing how the strategic sourcing process plays an important role in making supply chains more responsive amid disruption situations.Practical implicationsFindings of this paper clearly shows the impact of the phases of the strategic sourcing process on the responsiveness of the supply chains amid the COVID-19 pandemic. This can encourage supply chain leadership to devote more time to strategic sourcing initiatives to generate improvements on the supply chain performance.Originality/valueThis paper is unique since it brings an unexplored relation in respect to strategic sourcing amid disruption situations, such as the COVID-19 pandemic, from a practitioner's perspective. It also significantly contributes to developing new directions for the supply chain management domain to deal with large-scale disruptions, such as the coronavirus pandemic.

Strategic sourcing: An empirical study among Indian construction retailers

The Indian retail industry is an emerging sector particularly in the construction segment. Retailers play a major role in sourcing of construction materials. This paper aims to identify the factors responsible for strategic sourcing and to find the influence between them for effective business transactions among construction material retailers in India. Primary data was collected using a structured questionnaire and an adequate sample of 330 responses were obtained from the targeted respondents using convenient sampling method. Following statistical tests for validity and reliability, Structural Equation Model was used to analyse the data. Based on previous studies, five variables were identified: unstructured buying, retailer evaluation, retailer disengagement, retailer relationship management and strategic sourcing and 21 key items were considered for the survey. With the factors, a conceptual model was formulated, and hypotheses were framed and tested. Among the five hypotheses, four hypotheses were supported in the study. All variables except unstructured buying have a strong positive influence on strategic sourcing. The study's implications include creating a long-term relationship with retailers and enhancing strategic sourcing practices in the Indian construction sector. This study serves as a literature resource in strategic sourcing and adds value to construction supply chains.

On Co-opetitive Supply Partnerships with End-Product Rivals: Information Asymmetry, Dual Sourcing and Supply Market Efficiency

Problem definition: We consider opportunities for cooperation at the supply level between two firms that are rivals in the end-product market. One of our firms is vertically integrated (VI), has in-house production capabilities, and may also supply its rival. The other is a downstream outsourcing (DO) firm that has better market information. The DO is willing to consider a supply partnership with the VI, but it also has the option to use the outside supply market. Academic/practical relevance: Such co-opetitive practices are common in industrial supply chains, but firms’ co-opetitive strategic sourcing with the potential of information leakage has not been examined in the literature. Methodology: We build a game-theoretic model to capture the firms’ strategic interactions under the co-opetitive supply partnership with the potential information leakage. Results: The DO exploits its information advantage to obtain a better wholesale price from the VI and may use dual sourcing to protect its private information. Anticipating that, the VI may offer wholesale price concessions as an information rent to obtain the DO’s information. Our work identifies demand uncertainty and efficiency of outside supply market as the factors affecting the VI’s pricing decision and the resulting equilibrium. Pooling equilibrium arises often, but in a few cases, the equilibrium is separating. At the separating equilibrium, the DO always single sources, either from the VI or the independent supplier depending on the demand state. The VI benefits from ancillary revenue-generating opportunity, and from information acquisition in a separating equilibrium. On the other hand, the DO’s benefit is a cheaper price in exchange for market information in a separating equilibrium. In the pooling case, the DO uses dual sourcing to hide demand information, especially in the high demand case, and to better supply the end-market through his accurate demand information. Managerial implications: Our work provides useful insights into firms’ strategic sourcing behaviors to efficiently deal with the potential of information leakage in the co-opetitive supply environment and for the rationale behind such relationships often observed in industries.

A Study Of Strategic Sourcing And Strategic Supporting Of Virtual Teams

The number of virtual teams has increased in recent years due to globalization of business, advanced information and communication technology and increased need for innovation and competitiveness. In this article, two different virtual team arrangements that are successful in meeting their current competitive needs are reported. Data collected using in-depth interviews were analyzed and several key patterns that support strategic sourcing and strategic supporting emerged. Accordingly, the organization with “virtual teams in an organization (VTO)”structure indicated support for strategic supporting whereas the organization with “Organization as Virtual Teams (OVT)” structure indicated patterns that support strategic sourcing. The authors envisage that there is an opportunity for HRM to leverage on strategic opportunities when overlap of VTO and OVT structures is considered.

Multi-step process for selecting strategic sourcing options when designing supply chains

Purpose: This paper, devoted to the selection of strategic sourcing options as a part of the supply chain design, aims to provide supply chain designers with guidelines for selecting the best strategic sourcing option for each item (i.e., products, modules, parts and services).Design/methodology/approach: The study is based on a review of the literature on sourcing options, buyer-supplier relationships, factors and criteria to select a sourcing strategy as well as the authors experience in this field.Findings: We propose a multi-step process by considering the three dimensions of the strategic sourcing options (who and how many will make the item; in cases of outsourcing, the kind of relationship between buyer and supplier(s); and where the item is to be made) together with the characteristics of the context, demand and product, and the relevant criteria to evaluate them.Originality/value: The main contributions are the review of the factors and criteria for selecting the best strategic sourcing option for each item (i.e., products, modules, parts and services) as well as the guidelines provided for each step of the process.

Responsive manufacturing: creating competitive advantage through domestic and international sourcing practices

This study analyzed factors affecting production choices and resulting benefits and challenges associated with apparel production sourcing. The research focused on sourcing strategies’ effect on competitive advantage. Data were gathered through interviews with production sourcing professionals in Canadian and U.S. apparel firms that use offshore, domestic, or combined offshore/domestic production methods. Findings indicate offshore production may result in lost time and profit due to lack of control, wasted materials, rising production and shipping costs, and decreased quality and consumer-perceived brand value. Localized manufacturing may increase firms’ competitive advantage through improved control of production processes; enhanced customization, adaptation, and response to consumer desire; increased perceived brand value; and reduced waste level, number of failed products, and markdowns. Strategic sourcing and smaller-scale, localized production also supports the local economy, thus creating apparel firms that are strategic, responsible, and profitable.

Responsive manufacturing: creating competitive advantage through domestic and international sourcing practices

This study analyzed factors affecting production choices and resulting benefits and challenges associated with apparel production sourcing. The research focused on sourcing strategies’ effect on competitive advantage. Data were gathered through interviews with production sourcing professionals in Canadian and U.S. apparel firms that use offshore, domestic, or combined offshore/domestic production methods. Findings indicate offshore production may result in lost time and profit due to lack of control, wasted materials, rising production and shipping costs, and decreased quality and consumer-perceived brand value. Localized manufacturing may increase firms’ competitive advantage through improved control of production processes; enhanced customization, adaptation, and response to consumer desire; increased perceived brand value; and reduced waste level, number of failed products, and markdowns. Strategic sourcing and smaller-scale, localized production also supports the local economy, thus creating apparel firms that are strategic, responsible, and profitable.