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

Authors: Frank Henrik Hesping; Holger Schiele

Addresses: University of Twente, P.O. Box 217, NL 7500 AE, Enschede, The Netherlands ' University of Twente, P.O. Box 217, NL 7500 AE, Enschede, The Netherlands

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.

Keywords: scale development; literature review; sourcing levers; sourcing tactics; purchasing strategy; cost savings; procurement management; automotive OEMs; automobile industry; strategic sourcing.

DOI: 10.1504/IJPM.2016.077706

International Journal of Procurement Management, 2016 Vol.9 No.4, pp.473 - 504

Received: 19 Feb 2015
Accepted: 23 Mar 2015
Published online: 13 Jul 2016 *

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