Activity and Product Based Analysis for Alternative Strategic Sourcing Decisions

This paper addresses the issue of understanding the strategic sourcing decision making process in a supply chain environment. A case study of an automotive company was used to analyse the decision making process under different sourcing scenarios. A strategic sourcing assessment was conducted to analyse the consequences of different strategies when sourcing an activity or a product. The assessment presented in this paper, provides a quantitative analysis for the strategic sourcing decision making process and involves a strategic approach to evaluate strategic sourcing strategies based on their expected risks. The major contribution of this research is a detailed analysis of the decision making process for decision makers to understand the strategic sourcing decision when sourcing an activity or a product within its supply chain.