Sourcing tactics to achieve cost savings: developing a formative method of measurement

Frank Hesping, Holger Schiele

Research output: Contribution to journalArticleAcademicpeer-review

2 Citations (Scopus)
1474 Downloads (Pure)

Abstract

Sourcing levers describe tactics to achieve sourcing targets for diverse categories of materials or services. However, relevant research has been prevented inasmuch as the sourcing lever concept lacks explicit conceptualisation and a method of measurement. To fill this gap, this study developed a formative method of measurement for sourcing tactics. In the index development process, a literature review built the basis for highly interactive world café discussions with business professionals. Resulting measures have been tested in 107 sourcing projects within one large European automotive OEM. The measurement models build the basis for future empirical investigations about conditions, contingencies and antecedents for successful sourcing tactics application. In practice, the formative indicators can serve as a checklist to identify cost saving potentials and pave the way for systematic cost saving approaches with strategic sourcing.
Original languageEnglish
Pages (from-to)473-504
JournalInternational journal of procurement management
Volume9
Issue number4
DOIs
Publication statusPublished - 2016

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Tactics
Sourcing
Cost savings
Development process
Empirical investigation
Contingency
Check list
Conceptualization
Measurement model
Strategic sourcing
Literature review

Keywords

  • METIS-317586
  • IR-100987

Cite this

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Sourcing tactics to achieve cost savings: developing a formative method of measurement. / Hesping, Frank; Schiele, Holger.

In: International journal of procurement management, Vol. 9, No. 4, 2016, p. 473-504.

Research output: Contribution to journalArticleAcademicpeer-review

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T1 - Sourcing tactics to achieve cost savings: developing a formative method of measurement

AU - Hesping, Frank

AU - Schiele, Holger

PY - 2016

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AB - Sourcing levers describe tactics to achieve sourcing targets for diverse categories of materials or services. However, relevant research has been prevented inasmuch as the sourcing lever concept lacks explicit conceptualisation and a method of measurement. To fill this gap, this study developed a formative method of measurement for sourcing tactics. In the index development process, a literature review built the basis for highly interactive world café discussions with business professionals. Resulting measures have been tested in 107 sourcing projects within one large European automotive OEM. The measurement models build the basis for future empirical investigations about conditions, contingencies and antecedents for successful sourcing tactics application. In practice, the formative indicators can serve as a checklist to identify cost saving potentials and pave the way for systematic cost saving approaches with strategic sourcing.

KW - METIS-317586

KW - IR-100987

U2 - 10.1504/IJPM.2016.077706

DO - 10.1504/IJPM.2016.077706

M3 - Article

VL - 9

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EP - 504

JO - International journal of procurement management

JF - International journal of procurement management

SN - 1753-8432

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