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Logistics of low cost country sourcing
Linköping University, Department of Management and Engineering, Logistics Management. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Industrial Marketing and Industrial Economics. Linköping University, The Institute of Technology.
2010 (English)In: International Journal of Logistics, ISSN 1367-5567, E-ISSN 1469-848X, Vol. 13, no 2, 143-160 p.Article in journal (Refereed) Published
Abstract [en]

Increasing globalisation creates new possibilities for sourcing from low cost countries (LCC), but also comes with a range of logistics challenges and issues to be dealt with. The purpose of this paper is to investigate how logistics and its impacts are considered in LCC sourcing decisions. An exploratory multiple case study of industrial product companies engaged in distant LCC sourcing serves as an empirical base. Findings reveal that firms do not explicitly take logistics into account during LCC sourcing decisions. Even if logistics is considered, it is generally in a reactive way and takes a transactional cost focus. Instead, we propose a framework to proactively consider logistics factors in the early stages of LCC sourcing. This is done through identifying product and supplier related logistics factors and their impact on pre-transaction, transaction and post-transaction elements in the Total Cost of Ownership model.

Place, publisher, year, edition, pages
Taylor and Francis , 2010. Vol. 13, no 2, 143-160 p.
Keyword [en]
global sourcing, international logistics, low cost country, sourcing decision, total cost of ownership, industrial products
National Category
Engineering and Technology
URN: urn:nbn:se:liu:diva-56532DOI: 10.1080/13675560903557841ISI: 000277469900005OAI: diva2:320053
Available from: 2010-05-21 Created: 2010-05-21 Last updated: 2012-10-18

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