Supplier Networks, The OEM Hub And Sourcing Efficiency

in this paper, the authors explore how sourcing costs within a firm's supply chain can be better managed by managing upstream supply network of the .rm. Building on the three-year empirical investigation in the automative industry, the author proposes the concept of the OEM hub, a collaborative center involving the firm (the OEM), its suppliers and raw material suppliers, as the principal alignment for mechanism for managing value in upstream sourcing of a .rm. the authors model non-cooperative and cooperative OEM hub scenarios, anchoring it to the empirical work.