Managing raw material in supply chains Academic Article

abstract

• In this paper, we explore how firms can manage their raw material sourcing better by developing appropriate sourcing relationships with their raw material suppliers. We detail three empirical case studies of firms explaining their different raw material sourcing strategies: (a) firms can adopt a hands-off approach to raw material management, (b) firms can supply raw material directly to their suppliers, and this may be beneficial for some agents in the supply chain, and (c) firms can bring their component suppliers together, and the resulting cooperation between suppliers can be beneficial for supply chain. We then analytically model the three raw material scenarios encountered in our empirical work, examine the resulting profits along the supply chain, and extend the results to a competitive buyer scenario. Overall, our results show that active management of raw material sourcing can add value to supply chains. 2014 Elsevier B.V. All rights reserved.

authors

• Agrawal, Anupam

published proceedings

• EUROPEAN JOURNAL OF OPERATIONAL RESEARCH

author list (cited authors)

• Agiawal, A.

citation count

• 8

complete list of authors

• Agiawal, Anupam

publication date

• December 2014

publisher

• Elsevier  Publisher

published in

• European Journal of Operational Research  Journal

keywords

• Raw Material
• Sourcing
• Supply Chains

Digital Object Identifier (DOI)

• 10.1016/j.ejor.2014.06.012

start page

• 685

end page

• 698

volume

• 239

issue

• 3

URL

• http://dx.doi.org/10.1016/j.ejor.2014.06.012

user-defined tag

• 12 Responsible Consumption and Production