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Service-Dominant Strategic Sourcing: Value Creation Versus Cost Saving

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Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 247))

Abstract

The concept of strategic sourcing recognizes that procurement is not just a cost function, but supports the firm’s effort to achieve its long-term objectives. Organizations more and more expect from their chief procurement officer (CPO) to develop long-term and short-term plans in procurement. Typically, however, procurement is driven by a tactical spend management sourcing process aimed at cost saving targets, which is not able to support organizations in achieving strategic objectives like innovation, value creation, sustainable competitive advantage and long-term partnerships. A paradigm shift from a tactical way of thinking about sourcing to a more strategic way of thinking is needed by focusing on value-driven targets. To help realize the new paradigm of value-driven management in sourcing, we designed a systemic view on strategic sourcing based on Service-Dominant Logic and (service) systems thinking. We used this systemic view to develop the conceptual basis of a new modeling and analysis language that helps organizations in exploring sourcing alternatives according to value-driven management.

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Correspondence to Laleh Rafati .

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Rafati, L., Poels, G. (2016). Service-Dominant Strategic Sourcing: Value Creation Versus Cost Saving. In: Borangiu, T., Dragoicea, M., Nóvoa, H. (eds) Exploring Services Science. IESS 2016. Lecture Notes in Business Information Processing, vol 247. Springer, Cham. https://doi.org/10.1007/978-3-319-32689-4_3

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  • DOI: https://doi.org/10.1007/978-3-319-32689-4_3

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  • Publisher Name: Springer, Cham

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  • Online ISBN: 978-3-319-32689-4

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