Challenges of Sub-supplier Management – from a Cross Industry Perspective

Julia Burkhardt, Prof. Dr. Wolfgang Stölzle, Chair of Logistics Management, University St. Gallen


Expanding outsourcing activities and a shift of value creation along the supply chain led to an increase of complexity and a lack of transparency that can lead to a loss of control over the supply chain. For a long time, buyers have tried to gain control by managing their direct suppliers and hoping that they would communicate their requirements down the supply chain. However, a paradigm change regarding the responsibilities in the supply chain raised the awareness that a focus on the direct supplier is not sufficient anymore. Therefore, companies tried to start implementation of Sub-supplier Management approaches to increase efficiency and decrease risks in the supply chain that are associated to product quality, production costs or product availability. Currently, companies are working on overcoming barriers for an implementation of Sub-supplier Management processes.

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