Service-Dominant Strategic Sourcing: Value Creation Versus Cost Saving [chapter]

Laleh Rafati, Geert Poels
2016 Lecture Notes in Business Information Processing  
The concept of strategic sourcing recognizes that procurement is not just a cost function, but supports the firm's effort to achieve its long-term objectives. Organizations more and more expect from their chief procurement officer (CPO) to develop long-term and short-term plans in procurement. Typically, however, procurement is driven by a tactical spend management sourcing process aimed at cost saving targets, which is not able to support organizations in achieving strategic objectives like
more » ... ovation, value creation, sustainable competitive advantage and long-term partnerships. A paradigm shift from a tactical way of thinking about sourcing to a more strategic way of thinking is needed by focusing on value-driven targets. To help realize the new paradigm of value-driven management in sourcing, we designed a systemic view on strategic sourcing based on Service-Dominant Logic and (service) systems thinking. We used this systemic view to develop the conceptual basis of a new modeling and analysis language that helps organizations in exploring sourcing alternatives according to value-driven management.
doi:10.1007/978-3-319-32689-4_3 fatcat:ibbofhw7sravtivl7padvtuf44