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Methods and tools for managing remote sourcing and future expectations : A qualitative study

Schloms, P. (2020) Methods and tools for managing remote sourcing and future expectations : A qualitative study.

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Abstract:Global sourcing has widely received attention in the last decades. Yet, there is still a lack of research about remote sourcing, a special form of global sourcing which is concerned with buyers having a high share of intercontinental suppliers. Therefore, the aim of this study was to examine which methods/ tools suppliers use to manage remote suppliers. Further, it was investigated which future expectations purchasers have towards remote sourcing. A qualitative study in form of interviews with 15 purchasers was performed. Purchasers used supplier performance evaluation/ monitoring and supplier relationship building methods the most, while supplier integration received the least attention. The findings partly supported existing literature. Despite a clear preference for local sourcing, the general opinion was that remote sourcing is likely to remain relevant in the future. Purchasers prefer local sourcing because the proximity makes communication easier, but due to price reasons, remote sourcing is a necessity. The implications of this study are that firms should find a balance between having a strong relationship with their suppliers, but also critically assess their performance. Furthermore, the purchasers should determine for each product individually whether to source locally or globally and examine thoroughly whether remote sourcing brings the supposed benefits.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/81846
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