University of Twente Student Theses
Local sourcing : its expected benefits, experienced challenges and relationship with sourcing strategies.
Pas, G.J. (2021) Local sourcing : its expected benefits, experienced challenges and relationship with sourcing strategies.
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| Abstract: | This study investigates the motivations of buying organizations to source locally. Second, the experienced challenges of local sourcing are investigated. In addition, this research tries to link the motivations and challenges of local sourcing to the Kraljic Portfolio Matrix This research is qualitative in nature and data was gathered by means of semi-structured interviews with purchasers from ten different organizations across eight different industries. In line with current literature, logistic benefits and flexibility were mentioned as main motivations for local sourcing. As most experienced challenges, problems with the availability of products and a high purchase price were named. Beneath this, it appeared that challenges were also experienced in the relationship with local suppliers. Although, in general, purchasers prefer local sourcing over global sourcing, the challenges of local sourcing are forcing buying organizations to source globally. Regarding the Kraljic Portfolio Matrix, it appeared that products with a high supply risk are more challenging to source locally. However, not enough data was obtained to draw reliable conclusions for every quadrant of the matrix. As practical implications, buying organizations should always balance the benefits of local sourcing against its challenges when considering to source locally or globally. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 83 economics, 85 business administration, organizational science |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/86706 |
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