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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Sourcing strategy
Value proposition
Cleaning
Train
Business services
Expenditure
Service quality
Leverage
Costs
Supply risk
Competitive bidding
Commodities
Purchase

Cite this

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

Sourcing strategies for services that become part of the buying company's value proposition. / Valk, van der, W.; Weele, van, A.J.

Proceedings of the 18th IPSERA conference : supply management - towards an academic discipline?, April 5-8, 2009, Wiesbaden. ed. / C. Jahns; E. Hartmann. Oestrich-Winkel, Germany, 2009. p. 1539-1553.

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

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AB - 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.

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