Preview

Purchasing

Powerful Essays
Open Document
Open Document
9343 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Purchasing
ARTICLE IN PRESS
Journal of Purchasing & Supply Management 14 (2008) 170– 179

Contents lists available at ScienceDirect

Journal of Purchasing & Supply Management journal homepage: www.elsevier.com/locate/pursup

Cooperating and competing in supply networks: Making sense of a triadic sourcing strategy
Anna Dubois Ã, Peter Fredriksson 1
Division of Industrial Marketing, Department of Technology Management and Economics, Chalmers University of Technology, S-412 96 Gothenburg, Sweden

a r t i c l e in f o
Article history: Received 20 June 2007 Received in revised form 15 May 2008 Accepted 18 May 2008 Keywords: Sourcing strategy Triads Cooperation Competition Supply networks

a b s t r a c t
This paper introduces the concept of a ‘‘triadic sourcing strategy’’. Triadic sourcing is a way for buying companies to nurture and benefit from cooperation and competition between two suppliers with partially overlapping capabilities. In contrast to hybrid sourcing strategies outlined in the literatureparallel and network sourcing—the distinctive feature of triadic sourcing is that the buyer actively creates interdependencies between two suppliers. To illustrate this principle and the characteristics of triadic sourcing, Volvo Cars’ use of two suppliers of seats is described. The paper asserts that triadic sourcing is a dynamic sourcing strategy that contributes to efficiency and innovation for the buyer and the two suppliers, together forming a triad that is subject to firm interdependence and network embeddedness. & 2008 Elsevier Ltd. All rights reserved.

1. Introduction Sourcing strategies have been on top of the agenda in the area of industrial purchasing for a long time (Kraljic, 1983; Gadde and ˚ Hakansson, 1993; Ellram and Carr, 1994; Cousins and Spekman, 2003; Day and Lichtenstein, 2006; Ventovuori, 2006). In view of developments towards reducing the numbers of suppliers and increasing the content in the relationships with the remaining ones (Cousins,



References: Araujo, L., Dubois, A., Gadde, L.-E., 1999. Managing interfaces with suppliers. Industrial Marketing Management 28 (5), 497–506. Alchain, A.A., Demsetz, H., 1972. Production, information costs, and economic organization. The American Economic Review 62, 777–795. ˚ Anderson, J.C., Hakansson, H., Johanson, J., 1994. Dyadic business relationships within a business network context. Journal of Marketing 58 (4), 1–15. Bengtsson, M., Kock, S., 2000. ‘‘Coopetition’’ in business networks—to cooperate and compete simultaneously. Industrial Marketing Management 29, 411–426. Carson, P.P., Carson, K.D., Knouse, S.B., Roe, C.W., 2004. Balance theory applied to service quality: a focus on the organization, provider, and consumer triad. Journal of Business and Psychology 12 (2), 99–120. Choi, T.Y., Hong, Y., 2002. Unveiling the structure of supply networks: case studies in Honda, Acura, and DaimlerChrysler. Journal of Operations Management 20 (5), 469–493. Cousins, P.D., 1999. Supply base rationalisation: myth or reality? European Journal of Purchasing & Supply Management 5, 143–155. Cousins, P.D., Spekman, R., 2003. Strategic supply and the management of interand intra-organisational relationships. Journal of Purchasing and Supply Management 9, 19–29. Cox, A., 1999. The art of the possible: relationship management in power regimes and supply chains. Supply Chain Management: An International Journal 9 (5), 346–356. Day, M., Lichtenstein, S., 2007. Strategic supply management: the relationship between supply management practices, strategic orientation and their impact on organisational performance. Journal of Purchasing and Supply Management 12, 313–321. De Toni, A., Nassimbeni, G., 1999. Buyer–supplier operational practices, sourcing policies and plant performances: results of an empirical research. International Journal of Production Research 37 (3), 597–619. Dubois, A., Araujo, L., 2006. The relationship between technical and organizational interfaces in product development. The IMP Journal 1 (1), 21–38. Dubois, A., Araujo, L., 2007. Case research in purchasing and supply management. Journal of Purchasing & Supply Management 13, 170–181. Dubois, A., Gadde, L-E., 2002. Systematic combining—an abductive approach to case research. Journal of Business Research 55 (7), 553–560. ˚ Dubois, A., Hakansson, H., 2002. Conceptualising business relationships. Journal of Customer Behaviour 1, 49–68. Dyer, J., Nobeoka, K., 2000. Creating and managing a high-performance knowledgesharing network: the Toyota case. Strategic Management Journal 21, 345–367. Easton, G., Araujo, L., 1994. Market exchange, social structures and time. European Journal of Marketing 28 (3), 72–84. Ellram, L., Carr, A., 1994. Strategic purchasing: a history and review of the literature. International Journal of Purchasing and Materials Management (Spring), 10–18. ˚ Ford, D., Hakansson, H., Gadde, L-E., Snehota, I., 2003. Managing Business Relationships. John Wiley, Chichester. Fredriksson, P., 2006. Mechanisms and rationales for the coordination of a modular assembly system. International Journal of Operations & Production Management 26 (4), 350–370. ˚ Gadde, L-E., Hakansson, H., 1993. Professional Purchasing. Routledge, London. Gadde, L.-E., Snehota, I., 2000. Making the most of supplier relationships. Industrial Marketing Management 29, 305–316. Ghoshal, S., 2005. Bad management theories are destroying good management practices. Academy of Management Learning & Education 4 (1), 75–91. Granovetter, M., 1985. Economic action and social structure: the problem of embeddedness. American Journal of Sociology 91 (3), 481–510. Granovetter, M., 1992. Problems of explanation in economic sociology. In: Nohria, N., Eccles, R.G. (Eds.), Networks and Organizations: Structure, Form and Action. Harvard Business School Press, Boston, Mass, pp. 25–56. ˚ Hakansson, H., Snehota, I., 1995. Developing Relationships in Business Networks. Routledge, London. Havila, V., Johanson, J., Thilenius, P., 2004. International business-relationship triads. International Marketing Review 21 (2), 172–186. Helper, S.R., 1991. How much has really changed between US automakers and their suppliers? Sloan Management Review 32 (4), 15–28. Hines, P., 1995. Network sourcing: a hybrid approach. International Journal of Purchasing and Materials Management 31 (2), 17–24. Hines, P., 1996. Network sourcing: a discussion of causality within the buyer–supplier relationship. European Journal of Purchasing & Supply Management 2 (1), 7–20. Holmen, E., Pedersen, A-C., 2003. Strategizing through analyzing and influencing the network horizon. Industrial Marketing Management 32 (5), 409–418. ˚ Jahre, M., Gadde, L-E., Hakansson, H., Harrison, D., Persson, G., 2006. Resourcing in Business Logistics—the Art of Systematic Combining. Liber and Copenhagen ¨ Business School Press, Malmo. ¨ ¨ Kemppainen, K., Vepsalainen, A., 2003. Trends in industrial supply chains and networks. International Journal of Physical Distribution & Logistics Management 33 (8), 701–719. Kraljic, P., 1983. Purchasing must become supply management. Harvard Business Review (September–October), 109–117. ARTICLE IN PRESS A. Dubois, P. Fredriksson / Journal of Purchasing & Supply Management 14 (2008) 170–179 179 Laage-Hellman, J., 1989. Technological development in industrial networks. Ph.D. Dissertation, Uppsala University. Lamming, R., Johnsen, T., Zheng, J., Harland, C., 2000. An initial classification of supply networks. International Journal of Operations & Production Management 20 (6), 675–691. Meredith, J., 1998. Building operations management theory through case and field research. Journal of Operations Management 16 (4), 441–454. Ragin, C.C., Becker, H.S., 1992. Cambridge University Press, Cambridge. Richardson, G.B., 1972. The organisation of industry. The Economic Journal 82 (327), 883–896. Richardson, J., 1993. Parallel sourcing and supplier performance in the Japanese automobile industry. Strategic Management Journal 14, 339–350. Richardson, J., Roumasset, J., 1995. Sole sourcing, competitive sourcing, parallel sourcing: mechanisms for supplier performance. Managerial and Decision Economics 16 (1), 71–84. Sanchez, R., Mahoney, J.T., 1996. Modularity, flexibility, and knowledge management in product and organization design. Strategic Management Journal 17 (Winter Special Issue), 63–76. Sarkar, A., Mohapatra, P., 2006. Evaluation of supplier capability and performance: a method for supply base reduction. Journal of Purchasing and Supply Management 12, 148–163. Svensson, G., 2002. A triadic network approach to service quality. Journal of Services Marketing 16 (2), 158–179. Svensson, G., 2004. Triadic dependencies in business networks. European Business Review 16 (5), 473–493. Thompson, J.D., 1967. Organizations in Action. McGraw-Hill, New York. Van Hoek, R., Weken, H., 1998. How modular production can contribute to integration in inbound and outbound logistics. International Journal of Logistics: Research and Applications 1 (1), 39–56. Van Weele, A.J., 2005. Purchasing and Supply Chain Management. Thomson Learning, London. Ventovuori, T., 2006. Elements of sourcing strategies in FM services—a multiple case study. International Journal of Strategic Property Management 10, 249–267. von Corswant, F., Fredriksson, P., 2002. Sourcing trends in the car industry— a survey of car manufacturers’ and suppliers’ strategies and relations. International Journal of Operations & Production Management 22 (7), 741–758. Wu, Z., Choi, T.Y., 2005. Supplier–supplier relationships in the buyer–supplier triad: building theories from eight case studies. Journal of Operations Management 24, 27–52. Yin, R.K., 2003. Case Study Research. Design and Methods. Sage Publications, Thousand Oaks. Zeng, A., 2000. A synthetic study of sourcing strategies. Industrial Management and Data Systems 1000 (5), 219–226. Zirpoli, F., Caputo, M., 2002. The nature of buyer–supplier relationships in codesign activities. International Journal of Operations & Production Management 22 (12), 1389–1410. Anna Dubois is Professor at the division of Industrial Marketing, Chalmers University of Technology. Her research interests are focused on supply chain management with an emphasis on industrial purchasing. Peter Fredriksson is Assistant Professor at the division of Industrial Marketing, Chalmers University of Technology. His research and teaching concern supply chain management and product modularity.

You May Also Find These Documents Helpful

  • Powerful Essays

    References: Monczka, Robert M., Robert Handfield, Larry Giunipero, and James Patterson.Purchasing and Supply Chain Management . 4th ed. Mason, OH: South-Western, 2009. Print…

    • 2354 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Nissan Cogent Case Study

    • 2088 Words
    • 9 Pages

    Mari Sako (1993) 'Suppliers development at Honda, Nissan and Toyota: comparative case studies of organisational capability enhancement '. Industrial corporate change 13 281-308…

    • 2088 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    References: Carr, A.S., Pearson, J.N. (1999.). Strategically managed buyer–supplier relationships and performance outcomes. Journal of Operations & Management. 17 (5), 497–519.…

    • 2817 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Procurement Management

    • 527 Words
    • 3 Pages

    Cited: Monczka, Handfield, Giunipero,Patterson. Purchasing and Supply Chain Management. Fifth Edition. South Western Cengage. Print. 2011.…

    • 527 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    A comprehensive study of Joshua Arkwright & Sons, and the benefits they can expect to receive through an ERP implementation.…

    • 6013 Words
    • 25 Pages
    Powerful Essays
  • Best Essays

    References: 1. Accenture Consulting Company. (2001) Ford Business Challenge, United States, October 1994. Accenture Consulting: Author 2. Banham, R. (2001, July). Road Testing The Ford Supply Chain. Supply and Demand Chain Executive, 1-7. 3. Bosman, R. (2006). Risks Associated with Supply Chain Management. FM Global, 310. 4. Lamothe, R. (2001) Supply Chain Reaction: Logistics Outsourcing Firms Make Their Beachheads in Mexico. Business Mexico Magazine. 1-8 5. No Author. (2007, February) Supply Chain Management. Retrieved from www.nsf.gov/about/history/nsf0050/manufacturing/supply.htm 6. 7. No Author. (2007) Ford. Retrieved on March 25, 2007 from http://www.ford.com No Author. (2003, June). Ford Takes New View on Direct Material Procurement Management. Supply Chain Systems Magazine, 1-2. 8. Peter, J. (2004, October). Ford’s Supplier Parks is a Model for Future Supply Chain Operations in North America. Retrieved March 25, 2007 from http://findarticles.com/p/articles/mi_m3012/is_10_184/ai_n6261228/print 9. Speizer, I. (2006, March 27). Ford: The Right Way Forward? Workforce Management, 1, 24-30.…

    • 4990 Words
    • 20 Pages
    Best Essays
  • Powerful Essays

    Contract Risk

    • 5239 Words
    • 21 Pages

    Events within the past decades have shown the extent to which companies, and subsequently their supply chains, are vulnerable to adverse events (Deleris, Erhun, and PatéCornell 2004). This observation should be an expected outcome of recent developments in supply networks. For instance, researchers comment on increasing reliance of corporate supply chains on transportation, utilities, and communication infrastructures (NACFAM report 2003 and Cranfield University report 2002). Trends such as globalization and offshoring further increase the complexities and interdependencies in supply chains which are now predominantly characterized by a large number of interrelated processes and products. However, the strategic and tactical decisions of a firm influence the extent to which its supply network is flexible in the…

    • 5239 Words
    • 21 Pages
    Powerful Essays
  • Best Essays

    25. Simchi-Levi, D.; Kaminsky, P.; Simchi-Levi, E. (2008): Designing and Managing the Supply Chain: Concepts, Strategies and Case Studies. 3rd Ed. Boston. ISBN 0-07-128714-0…

    • 3034 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    Strategic Sourcing

    • 3460 Words
    • 14 Pages

    Strategic sourcing is critical for firms practicing the principles of supply chain management. It specifically deals with managing the supply base in an effective manner by identifying and selecting suppliers for strategic long-term partnerships, involving in supplier development initiatives by effectively allocating resources to enhance supplier performance, providing benchmarks and continuous feedback to suppliers, and in some cases involving in supplier pruning activities. Currently, the methodologies in practice for strategic sourcing have mostly been subjective in nature with few objective decision models focused at supplier evaluation, which are also not devoid of limitations. This paper proposes an objective framework for effective supplier sourcing, which considers multiple strategic and operational factors in the evaluation process. Suppliers are categorized into groups based on performance, which assists managers in identifying candidates for strategic long-term partnerships, supplier development programs, and pruning. In addition, this research investigates the differences among supplier groups in proposing possible improvement strategies for ineffectively performing suppliers. Also, we demonstrate the methodological richness of our framework when compared to some of the traditional methods proposed and utilized for supplier evaluation purposes. The supplier data utilized in the study is obtained from a large multinational corporation in the telecommunications industry.…

    • 3460 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    History of Pumpkins

    • 571 Words
    • 3 Pages

    The technical term for supply chain is defined as a set of three or more…

    • 571 Words
    • 3 Pages
    Good Essays
  • Best Essays

    References: Watson, G. and Lonsdale, C. (eds.) (2003) Managing the Supply Base within Business Networks, chapter 4…

    • 3805 Words
    • 16 Pages
    Best Essays
  • Powerful Essays

    Management 2 Employees

    • 1719 Words
    • 24 Pages

    Topic 8: Course Content Overview Strategy implementation and stakeholder management ACCT3583 Management Accounting 2 Stakeholder management Topic 7 Topic 6 Topic 8 Managing Knowledge as a Strategic Resource Managing customer value and relationships…

    • 1719 Words
    • 24 Pages
    Powerful Essays
  • Good Essays

    Traditional relationships expand variability by bringing more suppliers in with the general mix. Alliances practice are open to exchange information and empower straightforwardness all through the supply chain. They comprehend that information imparted is more effective than information kept to themselves. Traditional relationships use data as a weapon in win-lose arrangements. Alliance partners all contribute with resources to plan and operate the alliance. They connect with individuals, since human resources make the system work. They give assets to make better any activities together including individuals, time and cash to guarantee the alliance meets its potential. Traditional relationships perspective individuals, time and cash as assets to secure the own side and get away from the other. Alliance partners structure the association with working standards that survive the individuals’ assignments. Traditional relationships are identity-dependent frameworks that mirror the motivation of the individuals in the framework. Alliance partners divide both risks and rewards. The…

    • 1474 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    purchasing and supplies

    • 22463 Words
    • 90 Pages

    Mt Kenya University P.O. Box 342‐01000 Thika Email: Info@mku.ac.ke Web: www.mku.ac.ke DEPARTMENT OF BUSINESS AND SOCIAL STUDIES COURSE CODE: BBM 214 COURSE TITLE: INTRODUCTION TO PURCHASING AND SUPPLIES MANAGEMENT Instructional Material for BBM- Distance Learning i COURSE OUTLINE COURSE CODE: BBM 214 COURSE TITLE: Introduction to Purchasing and Supplies Management Purpose:…

    • 22463 Words
    • 90 Pages
    Powerful Essays
  • Powerful Essays

    Text

    • 24661 Words
    • 99 Pages

    Organisations must change in order to be able to follow the expansion in the world and be…

    • 24661 Words
    • 99 Pages
    Powerful Essays