An empirical investigation of the contribution of strategic sourcing to manufacturing flexibilities and performance

An empirical investigation of the contribution of strategic sourcing to manufacturing flexibilities and performance

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Article ID: iaor20022875
Country: United States
Volume: 30
Issue: 3
Start Page Number: 683
End Page Number: 718
Publication Date: Jun 1999
Journal: Decision Sciences
Authors: ,
Keywords: supply chain, sourcing
Abstract:

Empirical studies for achieving manufacturing flexiblity goals have centered around the uses and advantages of advanced technology. Few studies have examined alternative ways of attaining flexibility objectives. Strategic sourcing finds mention in the literature as a potential route to manufacturing flexibility. However, little empirical evidence exists to validate this view. Literature also describes manufacturing flexibility as a multidimensional concept but fails to adequately examine the synergies among the different dimensions. This research investigates the influence of strategic sourcing and advanced manufacturing technologies on specific manufacturing flexibilities, and examines relationships among different flexibilities. The results are tied to manufacturing cost reduction. The findings suggest that strategic sourcing can assist in the achievement of modification flexibilities. Volume and modification flexibility are found to influence new product flexibility. Modification flexibility is found to influence manufacturing cost reduction. The results show that strategic sourcing can be used to target specific manufacturing flexibilities and that interflexibility synergies need to be considered while formulating flexibility-based manufacturing strategies.

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