Sourcing strategies for services that become part of the buying company's value proposition

W. Valk, van der, A.J. Weele, van

Research output: Chapter in Book/Report/Conference proceedingConference contributionAcademicpeer-review

Abstract

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.
Original languageEnglish
Title of host publicationProceedings of the 18th IPSERA conference : supply management - towards an academic discipline?, April 5-8, 2009, Wiesbaden
EditorsC. Jahns, E. Hartmann
Place of PublicationOestrich-Winkel, Germany
Pages1539-1553
Publication statusPublished - 2009

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    Valk, van der, W., & Weele, van, A. J. (2009). Sourcing strategies for services that become part of the buying company's value proposition. In C. Jahns, & E. Hartmann (Eds.), Proceedings of the 18th IPSERA conference : supply management - towards an academic discipline?, April 5-8, 2009, Wiesbaden (pp. 1539-1553). Oestrich-Winkel, Germany.