Local sourcing practices at production companies in the Twente region

The increasing importance of sustainability made a new sourcing strategy popular which was local sourcing. Yet there is still a lack of research on local sourcing. Therefore the focus in this study is on finding out which products are often sourced locally and which sourcing practices companies use in their relations with local suppliers. Three theories were used to clarify the concepts of this study namely the Kraljic Portfolio Matrix, social capital theory and the seven sourcing practices. The data was obtained via qualitative interviews with 10 purchasers from different companies that were related to local sourcing. During this study purchasers classified different products that were sourced locally into the Kraljic Portfolio Matrix quadrants and argued that each quadrant needs its own local sourcing strategies and local sourcing practices. This had mainly to do with the supply risk and profit impact dimensions of the Kraljic Portfolio Matrix. Companies had different opinions about the seven sourcing practices. But in general each Kraljic Portfolio Matrix quadrant had particular local sourcing practices that stood out. The social capital theory adds value to this process by providing inspiration to companies to improve their collaboration with local suppliers