Essays on Strategic Sourcing, Off-shoring and Outsourcing Literature review

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The paper "Strategic Sourcing, Off-shoring and Outsourcing " is an outstanding example of a marketing literature review. It is quite evident that organizations across the globe are increasingly concentrating on what is perceived to be core business. As a result of this, there have trends in the increasing amount of work causing major elements of the business to be sourced or sub-sourced from external sources of the organizations. According to Feenstra and Hanson (2004), today terms such as off-shoring and outsourcing have become common concepts in the current supply chain management theory.

Nevertheless, this practice is coming under increasing review where organizations are involved in shifting this trend with a new idea such as onshoring, in shoring and nearshoring. It is for such reasons that this paper focuses on understanding what sourcing strategies by describing both new and old concepts of sourcing. Further, the paper will identify the various implication brought about by the new concepts especially on operation within supplies functions (Feenstra and Hanson 2004). 2.0 Strategic Sourcing Gö rg and Hanley (2005) maintain that strategic sourcing is defined as an organizational procurement process that is known to continually re-evaluate and improves a company purchasing activity.

Within any production environment, it is considered to be a major component of supply management. Strategic sourcing offers managers opportunities to extract cash from the value chain, service innovation and growth as well as ensuring that a stage is set for the continued product. Managers should realize that the key to unlocking value in sourcing widely rest within understanding effective capital management (Gö rg and Hanley 2005). Research indicates that sourcing decisions are a major determinant of profitability which widely makes a contribution to the financial health of any given institution.

The main distinguishing attribute of effective strategic sourcing is that it plays an integrative role in an organization's strategic planning process. However, the key to successfully achieving the described integration widely lies in the capabilities and skills of individuals within the purchasing function (Bullen and Chittenden 2010.).


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