Sourcing from low-cost countries: Identifying sourcing issues and prioritizing impacts on logistics performance

Research output: Contribution to journalArticle

27 Citations (Scopus)

Abstract

Purpose – The purpose of this paper is to investigate the issues pertinent to sourcing internationally from lowcost countries (LCCs) and to understand which issues are associated most strongly with a firm's logistics performance. Design/methodology/approach – Comparative examination of supply sources in developed countries and LCCs is conducted using a pairedsample setting. Data acquired by a mail survey of USbased manufacturing firms are analyzed using a canonical correlation analysis (CCA). CCA helps to reveal the structure of relationships within and between a set of sourcing issue variables and a set of the logistics performance variables investigated. Findings – Results indicate that the issues that should be priorities for improvement are: supplier production capability; business culture and practices; and communication infrastructure. Research limitations/implications – The survey data and analysis focused on US manufacturing firms importing from LCCs. However, there is increasing activity of US retailers importing from LCCs, suggesting a need for a followon study which considers the retailer perspective. Practical implications – Results not only validate the issues to be considered in sourcing from LCCs, but also provide a direction for logistics managers in allocating an organization's scarce resources to the issues of highest potential for improving logistics performance. Originality/value – The fast emerging role of LCCs as supply sources of US firms and the cost advantages of sourcing from LCCs are widely recognized. However, challenges associated with sourcing internationally from LCCs and the extent to which they are related to a firm's logistics performance have received limited attention in existing logistics research. This study contributes valuable insights into this area of international sourcing and logistics management.

Original languageEnglish (US)
Pages (from-to)79-96
Number of pages18
JournalThe International Journal of Logistics Management
Volume20
Issue number1
DOIs
StatePublished - May 22 2009

Fingerprint

Logistics
logistics
costs
firm
performance
Costs
manufacturing
supply
mail survey
Logistics performance
Sourcing
supplier
Managers
manager
infrastructure
examination
communication
Communication
methodology
management

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Transportation

Cite this

@article{ce743d169a834473be949532ab37689f,
title = "Sourcing from low-cost countries: Identifying sourcing issues and prioritizing impacts on logistics performance",
abstract = "Purpose – The purpose of this paper is to investigate the issues pertinent to sourcing internationally from lowcost countries (LCCs) and to understand which issues are associated most strongly with a firm's logistics performance. Design/methodology/approach – Comparative examination of supply sources in developed countries and LCCs is conducted using a pairedsample setting. Data acquired by a mail survey of USbased manufacturing firms are analyzed using a canonical correlation analysis (CCA). CCA helps to reveal the structure of relationships within and between a set of sourcing issue variables and a set of the logistics performance variables investigated. Findings – Results indicate that the issues that should be priorities for improvement are: supplier production capability; business culture and practices; and communication infrastructure. Research limitations/implications – The survey data and analysis focused on US manufacturing firms importing from LCCs. However, there is increasing activity of US retailers importing from LCCs, suggesting a need for a followon study which considers the retailer perspective. Practical implications – Results not only validate the issues to be considered in sourcing from LCCs, but also provide a direction for logistics managers in allocating an organization's scarce resources to the issues of highest potential for improving logistics performance. Originality/value – The fast emerging role of LCCs as supply sources of US firms and the cost advantages of sourcing from LCCs are widely recognized. However, challenges associated with sourcing internationally from LCCs and the extent to which they are related to a firm's logistics performance have received limited attention in existing logistics research. This study contributes valuable insights into this area of international sourcing and logistics management.",
author = "Kusumal Ruamsook and Russell, {Dawn M.} and Thomchick, {Evelyn Ann}",
year = "2009",
month = "5",
day = "22",
doi = "10.1108/09574090910954855",
language = "English (US)",
volume = "20",
pages = "79--96",
journal = "International Journal of Logistics Management",
issn = "0957-4093",
publisher = "Emerald Group Publishing Ltd.",
number = "1",

}

TY - JOUR

T1 - Sourcing from low-cost countries

T2 - Identifying sourcing issues and prioritizing impacts on logistics performance

AU - Ruamsook, Kusumal

AU - Russell, Dawn M.

AU - Thomchick, Evelyn Ann

PY - 2009/5/22

Y1 - 2009/5/22

N2 - Purpose – The purpose of this paper is to investigate the issues pertinent to sourcing internationally from lowcost countries (LCCs) and to understand which issues are associated most strongly with a firm's logistics performance. Design/methodology/approach – Comparative examination of supply sources in developed countries and LCCs is conducted using a pairedsample setting. Data acquired by a mail survey of USbased manufacturing firms are analyzed using a canonical correlation analysis (CCA). CCA helps to reveal the structure of relationships within and between a set of sourcing issue variables and a set of the logistics performance variables investigated. Findings – Results indicate that the issues that should be priorities for improvement are: supplier production capability; business culture and practices; and communication infrastructure. Research limitations/implications – The survey data and analysis focused on US manufacturing firms importing from LCCs. However, there is increasing activity of US retailers importing from LCCs, suggesting a need for a followon study which considers the retailer perspective. Practical implications – Results not only validate the issues to be considered in sourcing from LCCs, but also provide a direction for logistics managers in allocating an organization's scarce resources to the issues of highest potential for improving logistics performance. Originality/value – The fast emerging role of LCCs as supply sources of US firms and the cost advantages of sourcing from LCCs are widely recognized. However, challenges associated with sourcing internationally from LCCs and the extent to which they are related to a firm's logistics performance have received limited attention in existing logistics research. This study contributes valuable insights into this area of international sourcing and logistics management.

AB - Purpose – The purpose of this paper is to investigate the issues pertinent to sourcing internationally from lowcost countries (LCCs) and to understand which issues are associated most strongly with a firm's logistics performance. Design/methodology/approach – Comparative examination of supply sources in developed countries and LCCs is conducted using a pairedsample setting. Data acquired by a mail survey of USbased manufacturing firms are analyzed using a canonical correlation analysis (CCA). CCA helps to reveal the structure of relationships within and between a set of sourcing issue variables and a set of the logistics performance variables investigated. Findings – Results indicate that the issues that should be priorities for improvement are: supplier production capability; business culture and practices; and communication infrastructure. Research limitations/implications – The survey data and analysis focused on US manufacturing firms importing from LCCs. However, there is increasing activity of US retailers importing from LCCs, suggesting a need for a followon study which considers the retailer perspective. Practical implications – Results not only validate the issues to be considered in sourcing from LCCs, but also provide a direction for logistics managers in allocating an organization's scarce resources to the issues of highest potential for improving logistics performance. Originality/value – The fast emerging role of LCCs as supply sources of US firms and the cost advantages of sourcing from LCCs are widely recognized. However, challenges associated with sourcing internationally from LCCs and the extent to which they are related to a firm's logistics performance have received limited attention in existing logistics research. This study contributes valuable insights into this area of international sourcing and logistics management.

UR - http://www.scopus.com/inward/record.url?scp=79953837217&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=79953837217&partnerID=8YFLogxK

U2 - 10.1108/09574090910954855

DO - 10.1108/09574090910954855

M3 - Article

AN - SCOPUS:79953837217

VL - 20

SP - 79

EP - 96

JO - International Journal of Logistics Management

JF - International Journal of Logistics Management

SN - 0957-4093

IS - 1

ER -