Organisations are increasingly buying services that become part of their value proposition to their customers. At the same time, business services traditionally are sourced and contracted for in a traditional way. We study the single case of buying cleaning services by a Train Maintenance Company (TMC). Because of the high expenditures on cleaning services and the relatively low supply risk, cleaning services for TMC are seen as a leverage commodity. Therefore, the sourcing strategy adopted by TMC is based on competitive bidding. However, TMC’s cost driven orientation clearly affects the provider’s service quality in a negative way. We show why this sourcing strategy may not be the most effective strategy for this type of purchase and propose a new, more effective sourcing strategy for business services that become part of the buying company’s offering to their customers.
|Title of host publication||Proceedings of the 18th IPSERA conference : supply management - towards an academic discipline?, April 5-8, 2009, Wiesbaden|
|Editors||C. Jahns, E. Hartmann|
|Place of Publication||Oestrich-Winkel, Germany|
|Publication status||Published - 2009|