Skip to main content

Towards Model-Based Strategic Sourcing

  • Conference paper
  • First Online:

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 236))

Abstract

Strategic sourcing recognizes that procurement is not just a cost function, but supports the firm’s effort to achieve its long-term objectives. Strategic sourcing has become a critical area of strategic management that is centered on decision-making regarding an organization’s procurement activities such as spend analysis, capability sourcing, supplier selection and evaluation, contract management and relationship management. Many companies face challenges in obtaining the benefits associated with effective strategic sourcing. From an organizational perspective, procurement data management is a core organizational challenge for chief procurement officers (CPOs) for fact-based strategic sourcing decision-making. To address this challenge, we define research objectives to design a holistic view on strategic sourcing orientations and to develop a conceptual basis for enabling centralization of procurement data and enabling the systemic exploration of sourcing alternatives. From a service ecosystem perspective as a holistic view on strategic sourcing, we define a model driven approach to explore sourcing alternatives based on a common language (C.A.R.S) that enables companies to achieve procurement data management and analytics competencies for fact-based decision-making.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  1. Anderson, P.H., Rask, M.: Supply chain management: new organizational practices for changing procurement realities. J. Purchasing Supply Manag. 9(2), 83–95 (2003)

    Article  Google Scholar 

  2. Ellram, L.M., Carr, A.S.: Strategic purchasing: a history and review of the literature. Int. J. Phys. Distrib. Mater. Manag. 30(2), 10–18 (1994)

    Google Scholar 

  3. Cooper, M.C., Ellram, L.M.: Characteristics of supply chain management and the implications for purchasing and logistics strategy. Int. J. Logistics Manag. 4(2), 13–24 (1993)

    Article  Google Scholar 

  4. Chen, I.J., Paulraj, A., Lado, A.: Strategic purchasing, supply management and firm performance. J. Oper. Manag. 22(5), 505–523 (2004)

    Article  Google Scholar 

  5. Ellram, L.M., Liu, B.: The financial impact of supply management. Supply Chain Manag. Rev. 6(6), 30–37 (2002)

    Google Scholar 

  6. Paulraj, A., Chen, I.J., Flynn, J.: Levels of strategic purchasing: Impact on supply integration and performance. J. Purchasing Supply Manag. 12, 107–122 (2006)

    Article  Google Scholar 

  7. Weelec, A.: Purchasing and Supply Chain Management. Analysis, Startegy, Planning and Practise, 5th edn. Cengage Learning EMEA, Hampshire (2010)

    Google Scholar 

  8. Finch, G., Davidson, S., Kirschniak, C., Weikersheimer, M., Reese, C., Shockley, R.: Analytics: The Speed Advantage; Why Data-Driven Organizations are Winning the Race in Today’s Marketplace. IBM Global Business Services (2014)

    Google Scholar 

  9. LaValle, S., Hopkins, M., Lesser, E., Shockley, R., Kruschwitz, N.: Analytics: The New Path to Value; How the Smartest Organizations are Embedding Analytics to Transform Insights into Action. IBM Global Business Services (2010)

    Google Scholar 

  10. Procurement: optimizing savings and mitigating risk in a complex world. Technical report, IBM Smarter Commerce (2013)

    Google Scholar 

  11. The CPO’s Agenda for 2014… and Beyond. Technical report, Aberdeen Group (2014)

    Google Scholar 

  12. Dhawan, R., Walters, D., Bhattacharjya, J.: Procurement models for the future. In: The SMART Supply Chain Conference, Australia (2011)

    Google Scholar 

  13. Dhawan, R.: Procurement analytics. In: The CIPS Conference, Australia (2010)

    Google Scholar 

  14. Butner, B.: Sourcing in a Demanding Economic Environment. IBM Global Business Services (2009)

    Google Scholar 

  15. Eltantawy, R., Giunipero, L., Handfield, R.: Strategic sourcing management’s mindset: strategic sourcing orientation and its implications. Int. J. Phys. Distrib. Logistics Manag. 21 (2014)

    Google Scholar 

  16. Thalheim, B.: The science and art of conceptual modeling. In: Hameurlain, A., et al. (eds.) TLDKS VI. LNCS, vol. 7600, pp. 76–105. Springer, Heidelberg (2012)

    Google Scholar 

  17. Seligmann, P.S., Wijers, G.M., Sol, H.G.: Analyzing the structure of IS methodologies, an alternative approach. In: Proceedings of the First Dutch Conference on Information Systems, Amersfoort, The Netherlands (1989)

    Google Scholar 

  18. March, S.T., Smith, G.F.: Design and natural science research on information technology. Decis. Support Syst. 15(4), 251–266 (1995)

    Article  Google Scholar 

  19. Peffers, K., Tuunanen, T., Rothenberger, M., Chatterjee, S.: A design science research methodology for information systems research. J. Manag. Inf. Syst. 24(3), 45–77 (2007)

    Article  Google Scholar 

  20. Lusch, R.F., Stephen, L., Vargo, S.L., Matthew, O.: Competing through service: insights from service-dominant logic. J. Retail. 83(1), 2–18 (2007)

    Article  Google Scholar 

  21. Osterwalder, A., Pigneur, Y.: Designing business models and similar strategic objects: the contribution of IS. J. Assoc. Inf. Syst. 14(5), Article 3 (2013)

    Google Scholar 

  22. Von Bertalanffy, L.: General system theory (1969)

    Google Scholar 

  23. Beer, S.: Brain of the Firm. The Penguin Press, London (1972)

    Google Scholar 

  24. Beer, S.: The viable system model: its provenance, development, methodology and pathology. J. Oper. Res. Soc. 35(1), 7–25 (1984)

    Article  Google Scholar 

  25. Ng, I.C.L., Parry, G., Maull, R., McFarlane, D.: Complex engineering service systems: a grand challenge. In: Ng, I.C.L., Parry, G., Wild, P., McFarlane, D., Tasker, P. (eds.) Complex Engineering Service Systems. Springer, New York (2010). doi:10.1007/978-0-85729-189-9_23

    Google Scholar 

  26. Barile, S., Polese, F.: Smart service systems and viable service systems. In: Service Science, vol. 2, no. 1/2 (2010)

    Google Scholar 

  27. Vargo, S.L., Lusch, R.F.: From repeat patronage to value co-creation in service ecosystems: a transcending conceptualization of relationship. J. Bus. Mark. Manag. 4(4), 169–179 (2010)

    Article  Google Scholar 

  28. Maglio, P., Spohrer, J.: Fundamentals of service science. J. Acad. Mark. Sci. 36(1), 18–20 (2008)

    Article  Google Scholar 

  29. Vargo, S.L., Lusch, R.F., Akaka, M.A.: Advancing service science with service-dominant logic: clarifications and conceptual development. In: Maglio, P.P., Kieliszewski, J.A., Spohrer, J.C. (eds.) Handbook of Service Science. Springer, New York (2010)

    Google Scholar 

  30. Vargo, S.L., Akaka, M.A.: Service-dominant logic as a foundation for service science: clarifications. Serv. Sci. 1(1), 32–41 (2009)

    Article  Google Scholar 

  31. Barile, S., Saviano, M.: A new perspective of systems complexity in service science. Coll. BARILE, S., Impresa, Ambiente, Manag. 3(3) (2010)

    Google Scholar 

  32. Barile, S., Polese, F.: Linking the viable system and many-to-many network approaches to service-dominant logic and service science. Int. J. Q. Serv. Sci. 2(1), 23–42 (2010)

    Google Scholar 

  33. Barile, S., Saviano, M.: Foundations of systems thinking: the structure systems paradigm, in Aa, Vv. Contributions to Theoretical and Practical Advances in Management. A Viable Systems Approach (VSA). International Printing (2011)

    Google Scholar 

  34. Vargo, S.L., Akaka, M.A.: Value co-creation and service systems (Re)formation: a service ecosystems view. Inf. Serv. Sci. 4(3), 207–217 (2012)

    Article  Google Scholar 

  35. Vargo, S.L., Maglio, P.P., Akaka, M.A.: On value and value co-creation: a service systems and service logic perspective. Eur. Manag. J. 26(3), 145–152 (2008)

    Article  Google Scholar 

  36. Dobrzykowski, D., Tran, O., Tarafdar, M.: Value co-creation and resource based perspectives for strategic sourcing. Strat. Outsourcing: Int. J. 3(2), 106–127 (2010)

    Article  Google Scholar 

  37. Mele, C., Della Corte, V.: Resource-based view and service-dominant logic: similarities, differences and further research. JBM – J. Bus. Mark. Manag. 6(4), 192–213 (2013)

    Google Scholar 

  38. Rafati, L.: Capability sourcing: a service-dominant logic view. In: Proceedings of the 8th Mediterranean Conference on Information Systems (2014)

    Google Scholar 

  39. Rafati, L., Poels, G.: Introducing service-oriented organizational structure for capability sourcing. In: Snene, M., Leonard, M. (eds.) IESS 2014. LNBIP, vol. 169, pp. 82–91. Springer, Heidelberg (2014)

    Chapter  Google Scholar 

  40. Rafati, L., Poels, G.: Capability sourcing modeling. In: Iliadis, L., Papazoglou, M., Pohl, K. (eds.) CAiSE Workshops 2014. LNBIP, vol. 178, pp. 77–87. Springer, Heidelberg (2014)

    Google Scholar 

  41. Poels, G.: The resource-service-system model for service science. In: Trujillo, J., et al. (eds.) ER 2010. LNCS, vol. 6413, pp. 117–126. Springer, Heidelberg (2010)

    Chapter  Google Scholar 

  42. Barney, J.: Firm resources and sustained competitive advantage. J. Manag. 17(1), 99–120 (1991)

    Google Scholar 

  43. Barney, J.: Gaining and sustaining competitive advantage, 2nd edn. Prentice Hall, Upper Saddle River (2002)

    Google Scholar 

  44. Hill, C., Jones, G.: Strategic Management: An Integrated Approach, 10th edn. Cengage Learning, Boston (2012)

    Google Scholar 

  45. Helfat, C., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D., Winter, S.: Dynamic Capabilities: Understanding Strategic Change in Organizations. Blackwell, Malden (2007)

    Google Scholar 

  46. Zollo, M., Winter, S.G.: Deliberate learning and the evolution of dynamic capabilities. Organ. Sci. 13(3), 339–351 (2002)

    Article  Google Scholar 

  47. Teece, D.: A dynamic capabilities-based entrepreneurial theory of the multinational enterprise. J. Int. Bus. Stud. 01/2014 45(1), 8–37 (2014)

    Article  Google Scholar 

  48. Vargo, S.L., Lusch, R.F.: It’s all B2B…and beyond: toward a systems perspective of the market. Indus. Mark. Manag. 40(2), 181–187 (2011)

    Article  Google Scholar 

  49. Akaka, M.A., Vargo, S.L., Lusch, R.F.: An exploration of networks in value cocreation: a service-ecosystems view. Rev. Marketing Res. 9(Special issue), 13–50 (2012)

    Article  Google Scholar 

  50. Wieland, H., Polese, F., Vargo, S.L., Lusch, R.F.: Toward a service (eco) systems perspective on value creation. Int. J. Serv. Sci. Manag. Eng. Technol. 3(3), 12–24 (2012)

    Article  Google Scholar 

  51. Cardoso, J., Lopes, R., Poels, G.: Service Systems: Concepts, Modeling, and Programming. Springer Briefs in Computer Science. Springer, Heidelberg (2014)

    Book  Google Scholar 

  52. Vargo, S.L., Lusch, R.F.: Service-dominant logic: looking ahead. Presentation at the Naples Forum on Service, Isle of Capri, Italy, 14–17 June 2011

    Google Scholar 

  53. Bowman, C., Ambrosini, V.: Value creation versus value capture: towards a coherent definition of value in strategy. Br. J. Manag. 11, 1–15 (2000)

    Article  Google Scholar 

  54. Olive, A.: Conceptual Modeling of Information Systems. Springer, Berlin (2007)

    MATH  Google Scholar 

  55. Teece, D.: Business models, business strategy and innovation. Long Range Plan. 43, 172–194 (2010)

    Article  Google Scholar 

  56. IEEE recommended practice for architectural description of software-intensive systems. IEEE, New York (2000)

    Google Scholar 

  57. Loftin, R., Lync, R., Calhoun, J.: The Sourcing Canvas: A Strategic Approach to Sourcing Decisions, p. 13. Accelare Inc., USA (2011)

    Google Scholar 

  58. Cortada, J.W., Gordon, D., Lenihan, B.: The Value of Analytics in Healthcare, from Insights to Outcomes. IBM Global Business Services, New York (2012)

    Google Scholar 

  59. Brennan, C.D.: Integrating the healthcare supply chain. Healthc. Fin. Manag. 52(1), 31–34 (1998)

    MathSciNet  Google Scholar 

  60. Chakraborty, S., Dobrzykowski, D.: Linking service-dominant logic and healthcare supply chain (2013)

    Google Scholar 

  61. Golnam, A., Viswanathan, V., Moser, C.I., Ritala, P., Wegmann, A.: Designing value-oriented service systems by value map. In: Shishkov, B. (ed.) BMSD 2013. LNBIP, vol. 173, pp. 150–173. Springer, Heidelberg (2014)

    Chapter  Google Scholar 

  62. Madhavaram, S., Hunt, S.D.: The service-dominant logic and a hierarchy of operant resources: developing masterful operant resources and implications for marketing strategy. J. Acad. Mark. Sci. 36(1), 67–82 (2008)

    Article  Google Scholar 

  63. Ashutosh, S., Pratap, K.M.: Evaluation of supplier capability and performance: a method for supply base reduction. J. Purchasing Supply Manag. 12(3), 148–163 (2006)

    Article  Google Scholar 

  64. Chen, Y.J.: Structured methodology for supplier selection and evaluation in a supply chain. Inf. Sci. 181, 1651–1670 (2011)

    Article  Google Scholar 

  65. Narasimhan, R., Talluri, S., Mendez, D.: Supplier evaluation and rationalization via data envelopment analysis: an empirical examination. J. Supply Chain Manag.: Glob. Rev. Purchasing Supply 37(3), 28–37 (2001)

    Article  Google Scholar 

  66. Sarkis, J., Talluri, S.: A model for strategic supplier selection. J. Supply Chain Manag. 38(4), 18–28 (2002)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Laleh Rafati .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer International Publishing Switzerland

About this paper

Cite this paper

Rafati, L., Poels, G. (2015). Towards Model-Based Strategic Sourcing. In: Oshri, I., Kotlarsky, J., Willcocks, L. (eds) Achieving Success and Innovation in Global Sourcing: Perspectives and Practices. Global Sourcing 2015. Lecture Notes in Business Information Processing, vol 236. Springer, Cham. https://doi.org/10.1007/978-3-319-26739-5_2

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-26739-5_2

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-26738-8

  • Online ISBN: 978-3-319-26739-5

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics