Abstract
Although near sourcing is a valid alternative to global sourcing as a way to improve supply chain (SC) efficiency, there is a lack of studies aimed at understanding the reasons underlying the adoption of near sourcing strategies and at evaluating the related benefits. With the purpose of contributing to the discussion about the role of near sourcing in current dynamic SCs, the present work analyses the case of an Italian retailer that turned the global store furniture procurement process into near sourcing. Switching from Far East suppliers to a continental one enables a SC reengineering that decreases transportation and inventory carrying costs and assures economic viability. The work provides a methodological reference to compare global and near sourcing policies and to calculate the associated savings. The approach may be adapted to investigate different products, services, and business sectors.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Allon G, Van Mieghem JA (2010) Global dual sourcing: tailored base-surge allocation to near—and offshore production. Manag Sci 56(1):110–124
Berman B, Swani K (2010) Managing product safety of imported Chinese goods. Bus Horiz 53(1):39–48
Boyer K, Verma R (2010) Operations and supply chain management for the 21st century. Cengage Learning, Mason
Cagliano AC, De Marco A, Rafele C, Volpe S (2011) Using system dynamics in warehouse management: a fast-fashion case study. J of Manuf Technol Manag 22(2):171–188
Cappellini M (2011) Incentivi e flessibilità , produrre in Occidente ritorna vantaggioso. Il Sole 24 Ore 6 June: 23
Christopher M, Holweg M (2011) Supply chain 2.0 managing supply chains in the era of turbulence. Int J Phys Distrib Logist Manag 41(1):63–82
Edgell J, Meister GE, Stamp N (2008) Global sourcing trends in 2008. Strateg Outsourcing An Int J 1(2):173–180
Eurostat (2010) http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home. Accessed 30 Nov 2010
Hoekstra S, Romme J (1992) Integral logistic structures. Developing customer-oriented goods flow. Industrial Press, New York
Humphreys P, Mak KL, Yeung CM (1998) A just-in-time evaluation strategy for international procurement. Supply Chain Manag An Int J 3(4):175–186
Lacity MC, Willcocks LP, Rottman JW (2008) Global outsourcing of back office services: lessons, trends, and enduring challenges. Strateg Outsourcing An Int J 1(1):13–34
Lampel J, Bhalla A (2008) Embracing realism and recognizing choice in IT offshoring initiatives. Bus Horiz 51(5):429–440
Lowson RH (2001) Offshore sourcing: an optimal operational strategy. Bus Horiz 44(6):61–66
Lynch DJ (2008) Transport costs could alter world trade. USA Today 13 August. http://www.usatoday.com/money/industries/manufacturing/2008-08-11-cargo-costs-oil_N.htm. Accessed 21 Sep 2011
Meyer T (2006) Near shoring to central and Eastern Europe. Dtsch Bank Res, E-conomics 58. http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD//PROD0000000000201757.pdf. Accessed 21 Sep 2011
OECD (2010) http://www.oecd.org/. Accessed 30 Nov 2010
Platts KW, Song N (2010) Overseas sourcing decisions-the total cost of sourcing from China. Supply Chain Manag An Int J 15(4):320–331
Quintens L, Matthyssens P, Faes W (2005) Purchasing internationalisation on both sides of the Atlantic. J Purch Supply Manag 11(2–3):57–71
Rao MT (2004) Key issues for global IT sourcing: country and individual factors. Inf Syst Manag 21(3):16–21
Shister N (2008) Executive overview: near-sourcing. world trade Mag 3 January. http://www.worldtrademag.com/Articles/Column/BNP_GUID_9-5-2006_A_10000000000000226880. Accessed 5 July 2011
Silver EA, Pyke DF, Peterson R (1998) Inventory management and production planning and scheduling, 3rd edn. Wiley, New York
Thelen ST, Honeycutt ED Jr, Murphy TP (2010) Service offshoring. Does perceived service quality affect country-of-service origin preference? Manag Serv Qual 20(3):196–212
Trent RJ, Monczka RM (2003) Understanding integrated global sourcing. Int J Phys Distrib Logist Manag 33(7):607–629
United Nations Conference on Trade and Development (2010) Review of Maritime Transport. http://www.unctad.org/en/docs/rmt2010_en.pdf. Accessed 10 June 2011
Weidenbaum M (2005) Outsourcing: pros and cons. Bus Horiz 48(4):311–315
Wilkinson B, Eberhardt M, McLaren J, Millington A (2005) Human resource barriers to partnership sourcing in China. The Int J of Hum Resour Manag 16(10):1886–1900
Zsidisin GA (2003) Managerial perceptions of supply risk. J Supply Chain Manag 39(1):14–25
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Cagliano, A.C., De Marco, A., Rafele, C. (2013). The Impact of Near Sourcing on Global Dynamic Supply Chains: A Case Study. In: Kreowski, HJ., Scholz-Reiter, B., Thoben, KD. (eds) Dynamics in Logistics. Lecture Notes in Logistics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-35966-8_41
Download citation
DOI: https://doi.org/10.1007/978-3-642-35966-8_41
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-35965-1
Online ISBN: 978-3-642-35966-8
eBook Packages: EngineeringEngineering (R0)