The Sourcing Hub and Upstream Supplier Networks Academic Article

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.

authors

• Agrawal, Anupam

published proceedings

• M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT

author list (cited authors)

• Agrawal, A., Van Wassenhove, L. N., & De Meyer, A.

citation count

• 6

complete list of authors

• Agrawal, Anupam||Van Wassenhove, Luk N||De Meyer, Arnoud

publication date

• May 2014

publisher

• Institute for Operations Research and the Management Sciences (INFORMS)  Publisher

published in

• Manufacturing and Service Operations Management  Journal

keywords

• Raw Material Sourcing
• Sourcing Hub
• Supplier Network

Digital Object Identifier (DOI)

• 10.1287/msom.2013.0461

start page

• 238

end page

• 250

volume

• 16

issue

• 2

URL

• http://dx.doi.org/10.1287/msom.2013.0461