Lucien BURETH 

Local-First, Global-Second: Implementing Glocal 
Dual Sourcing for Supply-Chain Resilience 

An Exploratory Case of a Swiss Pump Manufacturer 

 

 

 

 

  

Vaasa 2025 

Faculty of Business Studies 

Master’s thesis 
Master’s Degree in International 

Business 

 



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UNIVERSITY OF VAASA 

Faculty of Business Studies 

Author:    Lucien BURETH 

Title of the Thesis:  Local-First, Global-Second: Implementing Glocal Dual Sourcing 
for Supply-Chain Resilience : An Exploratory Case of a Swiss Pump Manufacturer 

Degree:    Master of Science in International Business 

Programme:   Double Degree Program 

Supervisor:   Aušrinė Šilenskytė 

Year:    2025  

Pages: 90 

ABSTRACT: 

Global shocks—from pandemics to geopolitics—have exposed the fragility of cost-driven global 
sourcing. This study asks how manufacturing firms can implement a “glocal” dual-sourcing strat-
egy that simultaneously preserves cost competitiveness and strengthens supply-chain resili-
ence. Adopting an interpretivist, exploratory case design, we investigated a Swiss multinational 
that manufactures industrial pumps and vacuum systems. Six semi-structured interviews with 
the purchasing director, two global purchasers and three sourcing buyers provided the core data 
set, which was analysed thematically. 

Findings show that cost reduction remains the primary trigger for dual sourcing, but local sup-
pliers become indispensable shock absorbers when global flows are disrupted. The firm follows 
a distinctive “local-first, global-second” sequence: collaborate with proximate suppliers during 
product development to fix design and gain internal buy-in, then add low-cost foreign suppliers 
for volume production. Regional purchasing hubs in China and India bridge cultural and quality 
gaps, while selective application—focusing on high-value or long-qualification items identified 
via the Kraljic matrix—keeps complexity manageable. 

The study contributes a directional perspective to dual-sourcing theory and offers managers a 
pragmatic roadmap for balancing efficiency and resilience under VUCA conditions. 

 

KEYWORDS: sourcing, glocal sourcing, manufacturing firm, resilience, supply chain, global and 
local, sourcing implementation 

  



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Contents 

1 Introduction 7 

2 Literature Review 9 

2.1 Sourcing role and strategies 9 

2.1.1 Sourcing definition and role 9 

2.1.2 Definition of Single/Multiple sourcing and dual sourcing 11 

2.2 Geography-based sourcing strategies: local, continental, trans-continental and 

glocal 14 

2.3 VUCA World 16 

2.3.1 Disruption types 16 

2.3.2 Disruptions and manufacturing firms 19 

2.3.3 Disruptions and global sourcing risk on supply chains 20 

2.4 Resilience 22 

2.4.1 Definition 22 

2.4.2 Supply chain resilience 23 

2.4.3 Risk management and resilience 24 

2.5 Sourcing strategies and resilience in a VUCA world 25 

2.5.1 Sourcing strategies fostering collaboration and agility 26 

2.5.2 Sourcing strategies fostering redundancy and flexibility 27 

2.5.3 Implementing sourcing strategies based on component characteristics to 

enhance supply chain resilience 28 

2.5.4 Glocal dual sourcing, rationale and challenges to foster supply chain 

resilience 29 

3 Research methodology 33 

3.1 Research Philosophy and Approach 33 



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3.2 Research Design 34 

3.2.1 Exploratory Case Study 34 

3.2.2 Case Selection: Company Overview 34 

3.3 Data collection 36 

3.3.1 Semi-Structured Interviews 36 

3.4 Data analysis 38 

3.5 Reliability, validity and limitations 39 

3.5.1 Trustworthiness and Validity 39 

3.5.2 Limitations 40 

4 Results 41 

4.1 Why the Firm Uses Glocal Dual Sourcing 41 

4.1.1 Initial Motivation: Cost Savings with Global Suppliers 41 

4.1.2 Supply Chain Risks and the Need for Resilience 42 

4.1.3 Necessity of the Glocal Approach 44 

4.2 How the Firm Implements Glocal Dual Sourcing 46 

4.2.1 Initial Development with Local Suppliers 46 

4.2.2 Transition to Dual Sourcing with Global Suppliers 48 

4.2.3 Managing Glocal Dual Sources 50 

4.2.4 Selecting Components for Glocal Dual Sourcing and alternative strategies

 54 

4.3 Limits of glocal dual sourcing 57 

4.3.1 Suppliers’ capacity and responsiveness 57 

4.3.2 Customer Constraints 59 

5 Discussion 61 



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5.1 The reasons to use glocal dual sourcing 62 

5.1.1 Cost savings as primary incentive to use glocal sourcing 62 

5.1.2 Combining resilience and competitiveness in glocal sourcing 63 

5.2 Implementation of glocal dual sourcing 65 

5.2.1 Glocal dual sourcing directionality 65 

5.2.2 Use of sourcing hubs 67 

5.2.3 Identification of components fit for the glocal dual sourcing strategy 68 

6 Conclusion, Limitations and Directions for further research 71 

References 73 

  



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Figures 

 

Figure 1. Challenges encountered when implementing a glocal dual-sourcing strategy 

(Source: Author illustration). .......................................................................................... 32 

 

Tables 

 

Table 1. Interview Recap Table ....................................................................................... 37 

  



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1 Introduction 

Over the past four decades the increasing technical complexity of products, together 

with rapid advances in transportation and digital communication, has transformed the 

purchasing and supply networks of firms (Gadde & Wynstra, 2017). What began as an 

experiment by multinational manufacturers in search of lower input costs soon became 

a routine option for small and medium-sized enterprises, each orchestrating global webs 

of suppliers to secure price, quality, technology and speed (Kotabe & Murray, 2004). 

The logic was compelling. By spreading production lines across countries, components 

for a single product could be made wherever comparative advantage was greatest, then 

stitched together through ever faster logistics and information flows (Christopher & Hol-

weg, 2011; Trent & Monczka, 2003). Optimising such extended chains therefore prom-

ised a durable competitive edge and dominated operations thinking for much of the 

pre-pandemic era (Monczka et al., 2009). 

Yet the same scope that delivers efficiency can magnify fragility. When a container vessel 

wedged itself across the Suez Canal, when COVID-19 emptied Chinese ports, when war 

returned to continental Europe, firms that had perfected single-source, lowest-cost play-

books discovered how quickly a missing gasket or chip can halt an entire assembly line 

(Ivanov, 2020; Craighead et al., 2020; Meyer & Li, 2022). Major disruptions—geopolitical, 

sanitary, climatic—are not aberrations but a recurring feature of contemporary com-

merce (Sheffi, 2005; Taleb, 2007). The pressing question has become how global sourc-

ing can be adapted so that the flow of goods is secured at acceptable cost, quality and 

lead time even when shocks strike. 

Well before COVID-19, scholars had begun to map the evolution of global supply-chain 

risk (Colicchia et al., 2010) and to examine how procurement could shape resilience 

(Lago Da Silva et al., 2014). Early post-pandemic studies confirm that chains endowed 

with prior innovation capacity coped better (Orlando et al., 2021) and that sourcing 

choices such as just-in-time or relational contracting influenced disruption impact (Ca-

jal-Grossi et al., 2023). What remains thin, however, is empirical insight into whether 

global sourcing itself can be redesigned to buffer, rather than amplify, shocks. 



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The debate is often framed as a binary choice between overseas and domestic suppliers 

(Hoek & Dobrzykowski, 2021; Wang & Sun, 2020). While recent surveys report a swing 

toward nearby sources and shorter lead times (Koerber & Schiele, 2021), a wholesale 

retreat from international partners is rarely feasible: overseas plants may hold unique 

process know-how or proprietary tooling that cannot simply be replicated at home 

(Wu & Zhang, 2014). An alternative now gaining attention is the so-called “glocal” ar-

rangement, in which a proximate supplier offers responsiveness while a distant low-cost 

partner preserves price advantage. Analytical models suggest that such dual sourcing 

can tame disruption risk without the coordination overload of full multiple sourcing 

(Yu et al., 2009; Su & Liu, 2014; Tomlin, 2006), yet they often idealise suppliers as inter-

changeable nodes chosen simultaneously and thus overlook the lived reality of qualify-

ing, sequencing and governing the local–global pair. 

This thesis addresses that gap by tracing how a Swiss manufacturer of industrial pumps 

and vacuum systems set out to make its global sourcing more shock-proof without giving 

up hard-won cost advantages. Through six in-depth interviews with purchasing manag-

ers and an analysis of internal procurement documents, the study reconstructs the de-

cisions, hurdles and work-arounds that shaped the company’s shift toward what practi-

tioners describe as a “local-first, global-second” choreography of suppliers. In doing so, 

the narrative moves the discussion beyond abstract prescriptions—add inventory, diver-

sify suppliers—toward an understanding of how purchasing professionals navigate the 

tension between efficiency and robustness. 

The paper is organised as follows. Chapter 2 reviews the literature on sourcing strategies, 

supply-chain risk and resilience and develops the conceptual lens that frames the inquiry. 

Chapter 3 sets out the interpretivist single-case methodology. Chapter 4 presents the 

findings from the Swiss pump manufacturer, tracing how purchasing managers choreo-

graph a local-first, global-second supply base. Chapter 5 connects those findings to wider 

debates, highlighting theoretical contributions and managerial implications. Chapter 6 

distils the study’s key insights, acknowledges its limitations and sketches directions for 

future research. 

 



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2 Literature Review 

In this section, the relevent literature and studies conducted on strategic sourcing, 

resilence, and supply chain disruptions are presented. 

 

2.1 Sourcing role and strategies 

2.1.1 Sourcing definition and role 

Strategic sourcing, or supply chain management, is defined by Monczka et al. (2009) as 

the strategic processes behind obtaining the required goods or services for a company 

to operate. It includes identifying, selecting, evaluating, managing and developing sup-

pliers in order to acquire these goods or services at the best price, with the best quality, 

in the right quantity and in the best delay possible. The department in the organization 

responsible for the activities ensuring such feats is the purchasing department.  

Strategic sourcing is a subject of interest in the literature as it is a key component of the 

purchasing performance of firms, and therefore is a key component of the corporate 

success of firms (Giunipero et al., 2019). The importance of strategic sourcing becomes 

even clearer when we put into perspective the importance of the current share of pur-

chasing for manufacturing companies. Nowadays, an industrial company spends in aver-

age 60% of its turnover on the supplies, and savings in purchasing, by reducing the pur-

chasing costs, is typically twice as efficient on the firm return on assets than an increase 

in the sale volume (Schiele, 2019). This explains the initial incentive for firms to source 

from foreign locations with lower production cost (Kotabe & Murray, 2018). However 

recent global disruptions gave importance toward the securitization of the supplies (Hol-

gado & Niess, 2023). There is a need for firms to find a balance between cost and resili-

ence of their supply sources. Academic literature already showcased the importance and 

the role of purchasing and supply management, and therefore of strategic sourcing, 

when it comes to supply chain resilience (Chiang et al., 2012; Pereira et al., 2020; Pereira 

et al., 2014). 



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However, supply chain management or strategic sourcing involves multiple functions 

within the organization (Monczka et al., 2009; Schiele, 2019). Purchasing therefore 

needs to work closely with the quality department, manufacturing, the procurement de-

partment, the R&D department or even the finance department. In this sense, the pur-

chasing department acts as an interface between external stakeholders, like the suppli-

ers, and the firm, but also as an interface between the others internal functions which 

have been previously stated (Dubois & Wynstra, 2005). For a successful strategic sourc-

ing, there is firstly a need for an internal integration, which means proper communica-

tion flows and linkages between the different functions of the company in order to solve 

problems and work toward a common and jointly defined goal (Monczka et al., 2009, pp. 

111–152, Chapter 4). For instance, the supply management must work closely with the 

quality department to ensure that the suppliers are performing as they should, or with 

the R&D/engineering department to find suppliers meeting the technical requirements. 

And on the other hand, as the supply management represent the organization for the 

external stakeholders, there is a need for external integration, especially with the sup-

pliers. The supply management, and particularly the purchasing department, are the 

main communication link with the suppliers as they have the responsibility to select the 

suppliers, to negotiate the conditions of the purchase, and to handle any potential issue, 

with sometimes the support of other departments (Monczka et al., 2009, pp. 111–152, 

Chapter 4). External integration of this kind can take the form of open communication 

of information on production schedules, price list and price evolution, forecasts of pur-

chased items, or a commitment to product quality from the supplier. Monczka et al. 

(2009, pp. 123, Chapter 4) list these advantages of a closer buyer-seller relationship in 

opposition with the traditional approach, and the nature of the buyer-supplier relation-

ship is the responsibility of the supply management, and in particular of the purchasing 

department. 

Transactional or tactical sourcing issues that the supply management must deal with im-

ply the profiling by commodity of the items being sourced, then the definition of the 

source selection criteria for this commodity (Giunipero et al., 2019). Obviously when se-

lecting suppliers, several criteria are to be considered. The primary criteria are the price, 



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the quality, and the delay specific to each supplier. Other criteria are also being consid-

ered by firms such as management structure, financial performance, cost structure, en-

vironmental imprint, or depending on the product being sourced, technological capabil-

ities (Monczka et al., 2009, pp. 248-250, Chapter 7). After identifying suppliers, the sec-

ond aspect of sourcing management is the definition of the sourcing strategies, in line 

with the corporate strategy, and the requirement of the commodity being sourced 

(Monczka et al., 2009, pp. 243, Chapter 7). This corresponds to selecting which suppliers 

of the supply base firms will place orders and how (Burke et al., 2007). There is a first 

choice that needs to be made regarding whether to source locally or internationally, as 

local sourcing and global or foreign sourcing each has their advantages and disad-

vantages that this paper will elaborate on in the following parts of the literature review. 

The second aspect deals with the tactical nature of the sourcing strategies as firms need 

to identify for each commodity, or even at item level, if it must be sourced from a single 

supplier, or from multiple suppliers (Monczka et al., 2009, p. 244, Chapter 7). 

  

2.1.2 Definition of Single/Multiple sourcing and dual sourcing 

Single sourcing refers to a sourcing strategy where a firm relies on one supplier for a 

particular product, or sometime even a whole commodity. Research shows that many 

firms had shifted towards single sourcing to consolidate their supplier base, thereby ben-

efiting from economy of scale, reduced order lead times, and lower logistical costs (Burke 

et al., 2007). These advantages come from the ability to negotiate better terms with a 

single supplier, while establishing closer relationships, which in turn leads to improved 

performance. One of the other rationales behind single sourcing is the fact that it allows 

the firms to streamline and optimize their supply base (Monczka et al., 2009), which can 

firstly reduce the total product cost and the supply base administrative costs, but also 

lower the supply base Risk. Indeed, the supply risk does not only consist of supply dis-

ruption, according to Monczka et al., (2009), poor quality, poor delivery and poor pricing 

are also parts of the supply base risks and having a few carefully selected suppliers can 

reduce the probability of such supply risks. However, the success of single sourcing relies 



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on the development of trust and strong partnerships between the buyer and supplier 

which can be difficult to achieve (Burke et al., 2007). Moreover, a single sourcing situa-

tion can create an unhealthy dependency where one side may become overly reliant on 

the other, whether it is the supplier being financially dependent on the large volume 

ordered by the purchasing organization, or the buying firm being dependent on a single 

supplier due to the fact that it is the only qualified source for one of its critical item 

(Burke et al., 2007, p. 319). This also explains why single sourcing, especially from a single 

location, is a strategy vulnerable to supply disruption, making relying on a single supplier, 

especially for critical items, a risky option (AlvaradoVargas & Kelley, 2020; Monczka et al., 

2009; Pochard, 2003). If a supplier does not have multiple facilities in multiple locations, 

a disruption affecting its production capacity will result in a supply disruption due to the 

delay or the unavailability of the item produced by the affected supplier. This will hinder 

the operational activity of the buying firm and will affect the quality of service for its 

customers if it cannot deliver its final product.  

Multiple sourcing, on the other hand, involves procuring goods or services from several 

suppliers. Studies suggest that in situations where supply price uncertainty and lead-

time variability are high, using multiple sources reduces risks and increases flexibility 

(Burke et al., 2007; Lago Da Silva et al., 2014 ; Namdar et al., 2017). This approach mini-

mizes the risk of stockouts and helps firms manage unpredictable supply chains more 

effectively by splitting orders (Burke et al., 2007). Furthermore, research shows that di-

versification among suppliers can yield cost benefits when lead times are uncertain or 

when the firm is risk-averse, highlighting the flexibility and safety that multiple sourcing 

can provide in dynamic market conditions (Burke et al., 2007; Namdar et al., 2017). 

These advantages come, however, with counterparts. Multiple sourcing increases the 

complexity of the supply chain by adding horizontal complexity (number of suppliers) 

and spatial complexity (distance between the buying firm and its suppliers) as firms must 

manage relationships with several suppliers, each with their own production schedules, 

quality standards, geographical constraints and logistics processes (Bode & Wagner, 

2015). Increases in redundancies, which can be seen as a strategy to foster resilience, 

increase the complexity of the supply chain and therefore create uncertainties and 



13 

 

vulnerability points in the supply chain (Pochard, 2003). In addition, the administrative 

burden grows due to the need for more coordination, communication, and monitoring 

of multiple contracts. This can lead to higher transactional and operational costs, poten-

tially offsetting the cost benefits of supplier diversification (Monczka et al., 2009). 

Dual sourcing—a streamlined variant of multiple sourcing in which a firm deliberately 

splits its requirements between exactly two suppliers—forms the analytic core of this 

thesis. Its attraction is one of “just-enough” redundancy: by adding a single alternative 

source, the buyer escapes the hazard of total dependence yet avoids the coordination 

burden that often accompanies full multiple sourcing (Burke et al., 2007). Modelling 

studies confirm that a carefully designed local–global dyad can buffer both routine op-

erational volatility and low-frequency disruption shocks more efficiently than single- or 

many-supplier portfolios (Su & Liu, 2014). Practitioner interest in that middle-way option 

has surged since COVID-19, because it promises resilience without forcing a wholesale 

retreat from the cost advantages of global sourcing (Koerber & Schiele, 2021; Holgado & 

Niess, 2023; Wang & Sun, 2021). 

Most scholarly work on dual sourcing, however, remains analytically driven. Su and Liu 

(2014) show that its value depends on whether the two suppliers’ disruption risks are 

positively or negatively correlated. Co ,Henry C et al. (2012) derive a hybrid continuous-

review model for firms juggling a low-cost, long-lead-time offshore supplier with a faster 

but more expensive domestic partner. Earlier, Yu, Zeng and Zhao (2009) compared single 

versus dual sourcing under varying disruption probabilities, price differentials and relia-

bilities. Such decision-models illuminate when dual sourcing makes economic sense, but 

they treat implementation as an abstract parameter inside the algorithm. 

What remains under-explored is how manufacturing firms sequence, govern and evalu-

ate a local-global supplier dyad in practice. Empirical evidence is scant, and the few field 

studies that do exist still focus on narrowly defined tactics (e.g., Just In Time versus rela-

tional sourcing: Cajal-Grossi et al., 2023). This thesis therefore tackles an unresolved 

question: How can a glocal dual-sourcing strategy be implemented so that it strengthens 

supply-chain resilience without eroding cost competitiveness? By tracing the roll-out of 

such a strategy at a European industrial-pump manufacturer, the study complements the 



14 

 

predominantly modelling-based literature and clarifies the concrete benefits, trade-offs 

and managerial challenges involved. 

 

2.2 Geography-based sourcing strategies: local, continental, trans-conti-

nental and glocal 

Sourcing choices can be plotted along a geographic continuum that runs from the factory 

gate to the far side of the globe, each position offering a distinct mix of cost, responsive-

ness and risk. 

Local (domestic) sourcing secures inputs from suppliers in the firm’s own country or 

close region. Short lead times, shared institutions and cultural proximity make the chain 

highly responsive—an advantage that becomes critical when global lanes stall (Bastas & 

Garza-Reyes, 2022; Belhadi et al., 2021). Its chief drawback is higher factor cost, which 

can erode price competitiveness unless offset by flexibility or sustainability gains (Wu & 

Zhang, 2014). 

Continental (intra-regional) sourcing stretches the radius but keeps suppliers on the 

same economic land-mass—e.g., European buyers choosing Central-European partners. 

Roughly half of European firms’ external spend now sits in this “middle-distance” bracket 

(Bengtsson et al., 2009), and interest has climbed after COVID-19 as companies look for 

proximity without forfeiting scale (Koerber & Schiele, 2021). 

Trans-continental (global) sourcing coordinates common items, technologies and suppli-

ers across business units worldwide (Monczka & Trent, 1991). When executed strategi-

cally—i.e., not as ad-hoc international purchasing but as a cross-functional pro-

gramme—global sourcing can unlock cost, quality and technology advantages (Petersen 

et al., 2000; Kotabe & Murray, 2004). Yet the same lean, long networks magnify fragility: 

a blocked canal, a border closure or a pandemic lockdown can paralyse flow and inflate 

true landed cost (Holweg et al., 2011). 



15 

 

Firms pursue each geographic option through outsourcing (independent suppliers) or, 

where scale permits, intrafirm sourcing (internal subsidiaries), the latter conferring 

tighter control but accessible only to multinationals (Kotabe & Murray, 2004). 

Positioned at the intersection of those options is glocal sourcing—a hybrid that links at 

least one proximate supplier with at least one distant, lower-cost counterpart. The term 

draws on Svensson’s (2001) notion of glocal strategy—global reach tempered by local 

adaptation—but adapts it to procurement. Here the “adaptation” is not product locali-

sation; it is redundancy in geography: cost efficiency and scale are captured through the 

remote source, while rapid response and contextual certainty are secured through the 

local or regional partner. 

Academic treatment of glocal sourcing is still sparse. Most quantitative work embeds the 

idea implicitly under the label dual sourcing, modelling one cheap-but-risky supplier and 

one costly-but-reliable supplier (Su & Liu, 2014; Co ,Henry C et al., 2012; Yu, Zeng & Zhao, 

2009). That stylised assumption is often violated in practice: technology, quality certifi-

cation or currency swings can make the nearby source the more expensive and more 

risky party, or vice-versa. Only a handful of field papers probe such realities. Grandinetti 

and Tabacco (2015) show how spatial proximity fosters collaboration and innovation 

when complex, customised components are involved, but they do not examine disrup-

tion exposure. Koerber and Schiele (2021) document a post-COVID drift toward “conti-

nental plus trans-continental” supplier portfolios, yet provide little detail on governance 

or performance outcomes. 

Consequently, we still lack empirical insight into how manufacturers implement a glocal 

dual-sourcing set-up, what everyday challenges arise and whether the promised resili-

ence materialises in practice. Addressing that gap—by tracing the roll-out of a local-plus-

global dyad at a European industrial-pump maker—is the central purpose of the present 

thesis and the focus of the chapters that follow. 

 

 



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2.3 VUCA World  

In today's rapidly changing global environment, organizations operate within what is of-

ten referred to as a VUCA world. It is characterized by Volatility, Uncertainty, Complexity, 

and Ambiguity (Bennett & Lemoine, 2014). Originating from military terminology, the 

VUCA concept has been adopted in management and supply chain literature to describe 

the challenging conditions under which modern supply chains must function. Volatility 

refers to the speed and turbulence of change. It can be rapid fluctuations in demand, 

supply availability, or market conditions within supply chains. Uncertainty denotes the 

lack of predictability and the inability to foresee future events.  According to Bennett & 

Lemoine (2014), global supply chains may face uncertainty from unpredictable geopolit-

ical events, regulatory changes, and emerging market trends. Complexity involves the 

multitude of forces and factors that complicate decision-making. Since supply chains are 

networks with numerous interconnected entities, technologies, and processes, they are 

vulnerable to disruptions at multiple points. Finally ambiguity refers to the potential for 

misinterpretation which arises from unclear information, cultural differences, or conflict-

ing signals. 

 

2.3.1 Disruption types  

Understanding the VUCA framework is mandatory for organizations aiming to enhance 

supply chain resilience. To navigate the global environment, firms now need agility, 

adaptability, and risk management strategies (Christopher & Holweg, 2011). In this con-

text, there is a need to examine the various types of disruptions that can affect global 

supply chains. Disruptions can be categorized based on their source, nature, frequency, 

impact, geographical scope, and duration. 

Firstly, from a source-based perspective, disruptions may arise from natural disasters 

such as earthquakes, floods, hurricanes, and pandemics, which can damage infrastruc-

ture and disrupt logistics (Kleindorfer & Saad, 2005). Then man-made disasters, which 

can include for instance industrial accidents, fires, explosions, or hazardous material 



17 

 

spills, will affect production or transportation. Economic disruptions like financial crises, 

currency fluctuations, or trade wars affect supply chain costs and operations (Heckmann 

et al., 2015). Political and geopolitical risks such as government instability, regulatory 

changes, sanctions, embargoes, or terrorism, impact global trade routes and supply 

chain networks (Manuj & Mentzer, 2008). Technological disruptions, including cyber-at-

tacks, data breaches, system failures, or rapid technological changes, affect information 

flows and operational capabilities (Tang & Musa, 2011). Finally, social risks such as labor 

strikes, workforce shortages, pandemics affecting workforce health, or shifts in con-

sumer behavior influence supply and demand dynamics. 

When it comes to the nature of disruption, operational risks involve internal process fail-

ures like equipment malfunctions, quality control issues, or capacity constraints (Chopra 

& Sodhi, 2004). Supply risks originate from suppliers and include delays, poor perfor-

mance, or problematic financial situation (Monczka et al., 2009). Demand risks refers to 

unpredictable changes in customer demand which can lead to inventory imbalances or 

service level challenges. Additionnaly, environmental risks involve compliance with en-

vironmental regulations, sustainability concerns, or natural resource scarcity which can 

affect firms operations (Chopra & Sodhi, 2004). 

Disruptions can also be classified based on their frequency and impact. High-impact, 

low-frequency (HILF) events are rare occurrences that have significant consequences 

when they happen, such as major natural disasters, global pandemics, or significant ge-

opolitical conflicts (Macdonald & Corsi, 2013; Namdar et al., 2017). Due to their low 

probability, these events are often overlooked in risk assessments, but their high impact 

can cause important operational and financial damage. On the other hand, low-impact, 

high-frequency (LIHF) events occur more regularly but have a smaller individual impact 

on the supply chain. Examples include minor supplier delays, small-scale equipment fail-

ures, and routine transportation issues (Namdar et al., 2017; Zsidisin & Wagner, 2010). 

While each event may not significantly disrupt the operations, however if they are not 

properly handled their cumulative effects can degrade supply chain performance over 

time. 



18 

 

The geographical scope of a disruption also influences its impact on supply chains. Local 

disruptions affect a single facility or localized area and can often be managed with con-

tingency plans and local resources. Regional disruptions impact a broader area, poten-

tially affecting multiple facilities or suppliers within a specific region, such as regional 

natural disasters or political unrest. Global disruptions have worldwide implications, af-

fecting supply chains across multiple countries and continents. The COVID-19 pandemic 

is a prime example of a global disruption, exposing vulnerabilities in global supply chains 

and emphasizing the need for enhanced resilience and flexibility (Ivanov, 2020). 

A special category within the HILF events is the concept of Black Swan events, introduced 

by Taleb (2007). These are highly improbable and unpredictable incidents that have se-

vere and widespread consequences. Black Swan events are characterized by their rarity, 

as they are extreme outliers beyond the realm of regular expectations; their severe im-

pact, causing significant disruption and profound effects on operations and markets; and 

their retrospective predictability, where, after the event occurs, explanations and ration-

alizations make it appear predictable in hindsight. Examples of Black Swan events affect-

ing global supply chains include the 2008 global financial crisis and the COVID-19 pan-

demic. These events have underscored the importance of preparing for the unexpected 

and highlighted the need for flexibility and adaptability in supply chain management 

(Craighead et al., 2020). 

In a VUCA world, supply chains must be designed not only for efficiency but also for 

resilience. This involves a shift from cost-centric models to those that balance cost with 

risk management and agility (Christopher & Peck, 2004). By recognizing the types of dis-

ruptions that can occur and understanding their potential impact, organizations can bet-

ter prepare for and mitigate the risks inherent in global supply chains. 

 

 



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2.3.2 Disruptions and manufacturing firms 

Manufacturing firms are particularly susceptible to supply chain disruptions due to their 

heavy reliance on the timely and consistent flow of physical inputs and materials neces-

sary for production (Hendricks & Singhal, 2005). Disruptions affect manufacturing firms 

in multifaceted ways, impacting operational efficiency, financial performance, and stra-

tegic planning. Unlike service providers, whose outputs are often intangible and less de-

pendent on complex logistics networks, manufacturing operations are intricately linked 

to their supply chains. Disruptions in the supply of raw materials, components, or sub-

assemblies can halt production lines entirely, leading to significant operational and fi-

nancial losses (Tang & Tomlin, 2008). Additionally, the widespread adoption of lean man-

ufacturing practices and Just-in-Time (JIT) inventory systems has minimized buffer stocks 

in manufacturing firms, thereby increasing their vulnerability to any interruptions in sup-

ply (Christopher & Peck, 2004). The complexity and globalization of manufacturing sup-

ply chains, involving multiple tiers of suppliers across various geographical locations, fur-

ther exacerbate this vulnerability (Choi & Hong, 2002). In contrast, service providers of-

ten have greater flexibility and less dependence on physical goods, allowing them to 

adapt more readily to disruptions. Therefore, manufacturing firms face unique chal-

lenges in managing supply chain risks, necessitating strategies to enhance resilience and 

maintain continuity of operations. 

Covid-19 has been one of the biggest disruptive challenges for firms, especially in the 

manufacturing sector. Due to the specific nature of the epidemy, governments had to 

take measures such as travel restrictions, and mandatory lockdown leading to temporary 

shutdowns of factories in order to stop its spreading (Xu et al., 2020). The COVID-19 

pandemic had a significant impact on the manufacturing sector in the Euro Area. In 

March and April 2020, the Manufacturing PMI dropped sharply, with the index falling by 

an unprecedented 14.8 points in France and Germany, reaching 33.7. For the broader 

Eurozone, the PMI fell to 33.6 during the same period (CEIC Data). The impact of COVID-

19 has been further investigated by Cai and Juo in their 2020 study intitled Influence of 

COVID-19 on Manufacturing Industry and Corresponding Countermeasures from Supply 

Chain Perspective. Production interruption combined with a fluctuating and uncertain 



20 

 

demand, as well as logistic incapability to satisfy this demand caused major economical 

drawbacks on the manufacturing sector. They identified two phases, the first phase re-

lating the lockdown of the manufacturing center that is China, and the second phase 

dealing with the epidemy spreading globally, which affected the global production, but 

also the market demand, and the global logistic system. The other impact of the COVID-

19 disruption is on manufacturing firm sourcing strategies, and how they had to poten-

tially adapt them. According to Cai and Juo (2020) on of the major axe of development 

for manufacturing sourcing strategies is a switch from global sourcing to regional sourc-

ing. The regionalization trend has been a continuous discussion topic, especially in de-

veloped countries, due to anti-globalization populism and increased cost in developing 

countries. The COVID-19 crisis, and prior to it, the trade war between the U.S. and China 

further emphasized this debate (Wang & Sun, 2021). Despite all that, it seems like the 

COVID-19 crisis does not represent a turning point in global sourcing strategies (Koerber 

and Schiele, 2021). On the contrary, transcontinental sourcing is bound to remain im-

portant, or even slightly increase in the near future according to the interviewed com-

panies by Koerber and Schiele. Major disruptions like COVID-19, and the global business 

context in which global sourcing, and especially transcontinental sourcing will tend to 

keep increasing explain the need for manufacturing companies to achieve resilience for 

their global supply chain. 

 

2.3.3 Disruptions and global sourcing risk on supply chains 

Global sourcing offers firms lower costs, access to new markets and a broader supplier 

base, yet those very advantages enlarge their exposure to shocks (Trent & Monczka, 

2003). Recent work argues that major disruptions have become the rule rather than the 

exception for globally integrated businesses (Grossman, Gindre & Haering, 2023) and 

now occupy centre stage for both scholars and practitioners (Patel, 2023). Meyer and Li 

(2022) group these shocks into three overlapping barriers: restrictions on cross-border 

mobility, diverging national regulations and a rising tide of anti-globalisation populism—

each global in reach and uncertain in duration. 



21 

 

One familiar amplification mechanism is the bullwhip effect, the tendency for demand 

variability to grow as orders move upstream (Lee, Padmanabhan & Whang, 1997). Long 

lead times and dispersed supply networks worsen that distortion. When a shock 

strikes—say, a sudden swing in consumer demand—retailers often over-adjust their or-

ders; the reaction spreads to wholesalers and manufacturers, who see exaggerated de-

mand signals (Chen & Lee, 2012). The outcome is costly: excess stock, stock-outs or un-

planned production runs. 

Long international chains intensify the bullwhip because information travels slowly and 

opaquely across borders (Holweg et al., 2005). Time-zone gaps, language and cultural 

differences further hamper accurate communication (Kull et al., 2014). The sheer com-

plexity of coordinating forecasts across several countries compounds the challenge 

(Geary, Disney & Towill, 2006). In a disruption, these weaknesses become acute as man-

agers struggle to obtain timely, reliable data. 

A second hazard is capacity constraint at distant suppliers. Natural disasters, political un-

rest or health crises can close plants, deplete labour pools or block logistics routes 

(Ivanov, 2020). The COVID-19 pandemic combined all three: lockdowns shut factories in 

key sourcing nations, travel bans froze cross-border supervision and inconsistent health 

protocols fractured previously seamless flows (Shih, 2020; Meyer & Li, 2022). 

When suppliers already run near full capacity, even a brief stoppage leaves no slack to 

meet a rebound in demand (Sodhi & Tang, 2012). If a buyer relies on a single offshore 

source, switching production quickly is rarely an option (Sheffi, 2005). Dependence on a 

handful of suppliers therefore magnifies vulnerability when the primary source fails 

(Tang, 2006). Early evidence suggests many multinationals now respond by blending 

their global networks with nearer-to-home partners—often in the form of dual-sourcing 

portfolios—to hedge against future shocks (Koerber & Schiele, 2021). 

 

 



22 

 

2.4 Resilience 

2.4.1 Definition 

Resilience is a multifaceted concept explored across various disciplines such as ecology, 

psychology, engineering, and organizational studies. At its core, resilience refers to the 

ability of a system, entity, or individual to withstand, adapt to, and recover from disrup-

tions or adverse events (Holling, 1973; Sutcliffe & Vogus, 2007). 

In ecology, Holling (1973) defined resilience as the capacity of an ecosystem to absorb 

disturbances and reorganize while undergoing change, retaining essentially the same 

function, structure, and feedbacks. This perspective emphasizes adaptability and the 

ability to persist in the face of external shocks. 

In psychology, resilience pertains to an individual's capacity to cope with stress and ad-

versity, bouncing back from difficult experiences (Luthar et al., 2000). It involves pro-

cesses of adaptation and recovery that enable people to maintain or regain mental 

health despite hardship. 

Engineering resilience focuses on the ability of materials or structures to return to their 

original state after deformation or disruption. This notion emphasizes robustness and 

the speed of recovery, focusing on the system's efficiency in returning to equilibrium 

after a disturbance (Bruneau et al., 2003). 

Organizational resilience extends these concepts to businesses and institutions and refer 

to the capability of organizations to anticipate, prepare for, and respond to incremental 

changes or sudden disruptions in order to survive and prosper (Starr et al., 2003). This 

involves not only recovering from unexpected events but also learning from them to im-

prove future responses. 

 

 



23 

 

2.4.2 Supply chain resilience 

Supply-chain resilience is “the adaptive capability of a supply chain to prepare for, re-

spond to and recover from disruptions in a timely and cost-effective manner” (Tukamu-

habwa et al., 2015, p. 8). Four interrelated capabilities underpin this adaptability—agility, 

flexibility, collaboration, and redundancy—and must be considered together to avoid 

risk migration. 

Agility is the speed with which a supply chain detects disturbances and adjusts flows. 

Digital technologies such as IoT sensors, end-to-end visibility platforms and blockchain 

ledgers shorten information latency, allowing managers to trigger corrective actions be-

fore a local disturbance becomes system-wide (Ivanov & Dolgui, 2020). Predictive ana-

lytics and simulation further enhance agility by testing response options ex ante (Black-

hurst et al., 2011). 

Flexibility refers to the structural and contractual freedom to re-route resources when 

conditions change. Reconfigurable production cells, multi-modal transport networks and 

postponement strategies—delaying final product configuration until demand is known—

create real options that absorb forecast error rather than amplify it (Yang & Yang, 2010). 

Flexible volume clauses or price-adjustment mechanisms in supplier contracts serve the 

same purpose in the commercial domain (Tang & Tomlin, 2008). 

Technical options yield little benefit unless partners coordinate their use. Long-term re-

lationships, shared contingency plans and joint planning routines build the trust needed 

to exchange sensitive data and to execute rapid, system-wide adjustments (Wieland & 

Wallenburg, 2013). Embedding these routines in a risk-aware culture—regular risk re-

views, scenario drills and post-event learning sessions—makes collaborative responses 

habitual rather than ad hoc (Jüttner & Maklan, 2011). 

Redundancy provides physical and relational buffers against single-point failures. Inven-

tory safety stock cushions short disruptions (Tomlin, 2006), while dual or multi-sourcing 

protects against supplier-specific shocks (Chopra & Sodhi, 2014). Geographic redun-

dancy—near-shoring or local sourcing—shortens lead times and reduces exposure to 

global transport bottlenecks (Foerstl et al., 2016). Finally, parallel manufacturing sites or 



24 

 

Information technology systems ensure business continuity if a primary facility is com-

promised (Sheffi, 2005). 

Because the four capabilities interact, resilience initiatives must be integrated. Excessive 

safety stock can erode agility, and collaboration that ignores contractual flexibility may 

lock partners into rigid routines. Firms therefore combine selected levers—e.g., limited 

buffer inventory with postponement and data-sharing—to achieve robustness at ac-

ceptable cost. 

2.4.3 Risk management and resilience 

It is important to recognize that excessive risk aversion and attempts to mitigate all con-

ceivable risks without a holistic approach can inadvertently hinder supply chain resili-

ence. When firms focus narrowly on eliminating individual risks, they may implement 

measures that conflict with one another or lead to inefficiencies (Wieland & Wallenburg, 

2012). For instance, maintaining excessively high levels of safety stock to guard against 

supply disruptions can tie up capital and increase inventory holding costs, thereby re-

ducing the firm's financial flexibility and agility. Over-diversification of the supplier base, 

while intended to reduce dependency on single suppliers, can dilute relationships and 

reduce the benefits of collaboration and trust with key partners (Kern et al., 2012). This 

dilution can lead to decreased information sharing and coordination, impairing the sup-

ply chain's overall responsiveness. 

Moreover, an overly cautious approach may stifle innovation and adaptability. Firms that 

are preoccupied with mitigating every potential risk may become resistant to change and 

reluctant to adopt new technologies or processes that could enhance competitiveness 

(March & Shapira, 1987). Such risk-averse behavior can result in rigid supply chain struc-

tures that lack the flexibility to respond effectively to unforeseen events. Additionally, 

the costs associated with exhaustive risk mitigation strategies can outweigh the benefits, 

diverting resources from strategic initiatives that contribute to long-term resilience 

(Jüttner et al., 2003). 

Therefore when adopting a risk management strategy, it must be done while keeping a 

balanced and holistic view. By understanding the interdependencies of risk factors and 



25 

 

focusing on the most critical vulnerabilities, firms can allocate resources effectively and 

develop strategies that support both resilience and operational performance (Manuj & 

Mentzer, 2008). Embracing a risk-aware culture rather than a risk-averse one encourages 

proactive planning and flexibility, enabling the supply chain to adapt and thrive in the 

face of disruptions. 

 

2.5 Sourcing strategies and resilience in a VUCA world 

The last part of the literature review consists in identifying the relation between sourcing 

strategies and supply chain resilience. To do so, the study uses the definition of resilience 

and the four core resilience strategies identified by Tukamuhabwa et al. (2015). By link-

ing the latter resilience framework with sourcing strategy’s impacts, the study gives a 

first outline to understand the link between sourcing strategies and their impact on the 

supply chain resilience. It will give the paper a framework to identify the right criteria to 

define a resilient « glocal » sourcing strategy. This approach is motivated by the fact that 

literature studied and highlighted the importance of purchasing side management, and 

especially the strategic sourcing process, in developing the resilience of the supply chain 

(Pereira et al., 2014; Pereira et al., 2020). According to Pereira et al. (2020), the purchas-

ing and supply management function, due to its interface nature, plays a role both inter-

nally and externally in strengthening the resilience of the supply chain. In their article, 

they set out the proactive practices of PSM (Information sharing redundancy of suppliers 

and critical items, Supplier relationship which stimulates collaboration, product flexibility, 

etc.), as well as the reactive practices (collaboration between the buyer and supplier to 

overcome disruption for critical supplies, flexibility to receive the ordered material in 

different volumes, Collaboration between buyer and supplier by exchanging materials in 

stock, etc.) that can be used to strengthen the resilience of the supply chain. These prac-

tices can be used as a basis for developing a resilient glocal dual sourcing strategy frame-

work, and draw to varying extents on the four major aspects of resilience developed by 

Tukamuhabwa et al. (2015) 

 



26 

 

2.5.1 Sourcing strategies fostering collaboration and agility 

Literature showed the impact of sourcing strategies on the collaboration aspect. The 

study of Cajal-Grossi et al. (2023) compared the JIT sourcing strategy with the relation-

ality sourcing strategy in disruption time, emphasizing the importance of collaboration 

and long-term relationship with suppliers in achieving supply chain resilience as relation-

ality performed better during COVID-19 period. Collaboration and long-terms relation-

ship enable better visibility throughout the supply chain, facilitating the exchange of in-

formation (Orlando et al., 2021). This gives the firms the opportunity to detect early 

warning signals, and therefore to adapt their supply chain management strategy accord-

ingly. A paper of Scholten & Schilder (2015) already describes the role of collaboration 

as an antecedent of supply chain resilience. Their multiple case-study analysis, through 

the buyer-supplier relationship spectrum, also supports the statement that information 

sharing and collaborative communication help improving supply chain visibility, allowing 

for the detection and the implementation of appropriate responses to upstream or 

downstream disruptions. This further supports the synergy identified by Tukamuhabwa 

et al. (2015) between collaboration and agility while potentially reducing/arming the 

flexibility of the supply chain. The sourcing strategy which emphasizes the most the col-

laboration and relationship aspects is the single sourcing, which has been largely studied 

in the literature, whether it is about its benefits with easier supplier management, cost 

reduction through economy of scale, better supplier relationship development and col-

laboration, or its drawback and risk, with the supplier dependency and the current dis-

cussions about supply disruption (Namdar et al., 2017 ; Swift, 1995 ; Treleven, 1987). 

Therefore, such strategy, whether it is single sourcing for a single product or single sourc-

ing for multiple products, foster collaboration, and agility through better collaboration 

and better visibility of the supply chain, while at the same time exposing the firm to 

potential disruption as it reduces the supply flexibility of the company. 

 



27 

 

2.5.2 Sourcing strategies fostering redundancy and flexibility 

At the opposite end of the sourcing spectrum are strategies designed to embed 

redundancy—spare capacity, alternative suppliers or parallel logistics routes—into the 

network. Redundancy is often described as the costliest but most powerful lever of re-

silience (Tukamuhabwa et al., 2015). In procurement terms it usually means contracting 

a backup supplier before any disturbance occurs, so the firm can redirect orders when 

its primary source falters. Kamalahmadi et al. (2021) show that such pre-arranged 

“buffer” contracts cut expected lost sales and total cost while lifting service levels during 

disruption scenarios. 

Because each extra source also broadens the firm’s manufacturing footprint, redundancy 

automatically raises supply-base flexibility—the ability to shift volumes or switch routes. 

Geography, however, matters: if primary and secondary suppliers sit in the same hazard 

zone, a single flood or lockdown can hit both simultaneously (Tukamuhabwa et al., 2015). 

Flexibility can also be achieved without redundancy—through, for example, volume-flex 

clauses with a single supplier—but firms often prefer that route only when the high, 

upfront cost of maintaining duplicates outweighs the risk of failure (Kamalahmadi et al., 

2021). 

Much of the formal literature analyses these trade-offs through decision models. 

Namdar et al. (2017) compare single, dual and multiple sourcing under low-impact/high-

frequency versus high-impact/low-frequency shocks and show that risk-averse firms 

gravitate to dual sourcing to minimise Conditional Value at Risk. Su and Liu (2014) 

demonstrate how an organisation with one domestic and one foreign supplier allocates 

order volumes as disruption frequency and magnitude change; they find that even mod-

erate risk aversion justifies a persistent share for the domestic source despite its higher 

cost. Likewise, Yu et al. (2009) derive threshold probabilities at which the profit ad-

vantage of single sourcing collapses, making a dual portfolio optimal. 

Taken together, these studies portray dual sourcing as a calibrated form of redundancy 

— “just enough” duplication to keep options open without the full complexity of many-

supplier portfolios. That middle-path logic frames the present thesis: we examine how a 



28 

 

European manufacturer implements a glocal dual-sourcing arrangement—and whether 

the promised blend of redundancy and flexibility translates into real resilience. 

 

2.5.3 Implementing sourcing strategies based on component characteristics to en-

hance supply chain resilience 

Resilience strategies and risk mitigation efforts can be costly and, if not carefully targeted, 

potentially counterproductive. It is crucial for firms to focus their efforts where they mat-

ter most to enhance supply chain resilience effectively (Christopher & Holweg, 2011). 

Implementing sourcing strategies based on the characteristics of components or com-

modities allows firms to allocate resources efficiently and tailor their approach to the 

specific risks and requirements associated with different items. 

One widely recognized tool for categorizing purchased items and developing appropriate 

sourcing strategies is the Kraljic Matrix (Kraljic, 1983). This matrix classifies components 

based on two dimensions: profit impact and supply risk. Profit impact refers to the stra-

tegic importance of the component, including factors like cost and contribution to prod-

uct quality. Supply risk involves the complexity of the supply market, such as the availa-

bility of suppliers and the potential for supply disruptions. 

The Kraljic Matrix divides components into four categories: non-critical items, leverage 

items, bottleneck items, and strategic items. By applying the Kraljic Matrix, firms can 

prioritize their risk management efforts and allocate resources to components that have 

the most significant impact on their operations and profitability. 

An additional aspect in implementing sourcing strategies is prioritizing high-volume com-

ponents, which often represent a significant portion of a company's purchasing expend-

itures and have a substantial impact on production processes (Olsen & Ellram, 1997). 

Focusing on these components allows firms to achieve greater economies of scale, ne-

gotiate better terms with suppliers, and more effectively mitigate supply chain risks. To 

manage high-volume components effectively, purchasing departments need to collabo-

rate closely with sales and demand planning functions to ensure alignment with market 



29 

 

demand (Caniëls & Gelderman, 2005). Accurate sales forecasts enable procurement pro-

fessionals to anticipate required volumes, plan inventory levels, and negotiate long-term 

agreements with suppliers. This cross-functional collaboration enhances supply chain re-

silience by ensuring that sourcing decisions are informed by up-to-date market intelli-

gence and demand projections, thereby reducing the risk of stockouts or excess inven-

tory (Monczka et al., 2009). 

Additionally, the characteristics of the product, like complexity, technological specificity, 

and time required for supplier qualification, play a role in shaping sourcing strategies. 

For complex products or those requiring specialized technologies, the pool of suppliers 

may be limited, increasing supply risk (Handfield et al., 2009). The time and resources 

needed to qualify a new supplier can be substantial, making it impractical to switch sup-

pliers quickly in response to disruptions. In such cases, building strong relationships with 

existing suppliers and investing in collaborative risk management becomes essential 

(Schiele, 2019). 

Furthermore, for certain components, traditional resilience strategies like inventory buff-

ering may be impossible or impractical. For example, products with a short shelf life, high 

obsolescence risk, or high storage costs cannot be stockpiled effectively (Christopher & 

Peck, 2004). In these situations, firms need to explore alternative strategies, such as flex-

ible sourcing arrangements, demand management, or product design modifications that 

allow for the use of more readily available materials. 

 

2.5.4 Glocal dual sourcing, rationale and challenges to foster supply chain resilience 

Implementing a glocal dual sourcing strategy—combining both global and local suppli-

ers—presents a promising approach for manufacturing firms aiming to enhance supply 

chain resilience. This strategy seeks to capitalize on the cost efficiencies and specialized 

capabilities of global suppliers while leveraging the responsiveness and reliability of local 

suppliers (Grandinetti & Tabacco, 2015). By diversifying the supply base geographically, 

firms can mitigate risks associated with disruptions, adapt more swiftly to market 

changes, and maintain competitive pricing. 



30 

 

The rationale behind adopting a glocal dual sourcing strategy lies primarily in the security 

of supply. Global sourcing offers access to a broader range of suppliers and potentially 

lower production costs due to economies of scale and lower labor expenses in certain 

regions (Kotabe & Murray, 2004). However, it also exposes firms to risks such as longer 

lead times, geopolitical uncertainties, and increased vulnerability to global disruptions 

(Holweg et al., 2011). Local sourcing, on the other hand, provides advantages in terms 

of shorter lead times, better communication, and greater control over the supply chain 

(Jin, 2004). By integrating both, firms can achieve flexibility and redundancy, ensuring 

continuity of supply even when one source faces challenges (Tang, 2006). 

Additionally, glocal dual sourcing enhances agility and communication within the supply 

chain. Local suppliers can respond more quickly to sudden changes in demand or unex-

pected operational issues, allowing firms to adapt to client needs or geopolitical prob-

lems effectively (Srinivasan & Swink, 2018). This agility is crucial in today's volatile mar-

kets, where customer preferences and external conditions can shift rapidly. Simultane-

ously, maintaining relationships with global suppliers helps firms remain price competi-

tive while not compromising on the security of their supplies (Steinle & Schiele, 2008). 

Despite these advantages, there are significant challenges associated with implementing 

a glocal dual sourcing strategy. One of the primary hurdles is the complexity of managing 

multiple suppliers across different regions (Trent & Monczka, 2003). This complexity in-

cludes finding the right suppliers in foreign countries, which involves overcoming barri-

ers such as cultural differences, language barriers, and varying business practices (Kull & 

Wacker, 2010). Establishing trust and ensuring quality standards with foreign suppliers 

can require substantial time and resources (Jean et al., 2010). 

Communication is another critical challenge. Coordinating with suppliers across different 

time zones and cultural contexts can lead to misunderstandings and delays (Paulraj et al., 

2008). Effective communication is essential for synchronizing production schedules, 

managing inventory levels, and responding to disruptions promptly. Firms need to invest 

in robust communication systems and develop cross-cultural competencies to manage 

these relationships successfully (Golini & Kalchschmidt, 2011). 



31 

 

The management cost associated with glocal dual sourcing is also a significant consider-

ation. Managing a larger and more diverse supplier base requires more resources dedi-

cated to supplier relationship management, quality control, and logistical coordination 

(Hald & Ellegaard, 2011). There may be increased administrative burdens, as well as the 

need for more sophisticated information systems to track and integrate data from mul-

tiple sources (Gunasekaran et al., 2015). Allocating resources effectively between global 

and local suppliers can be challenging, and firms must balance the benefits against the 

additional costs incurred. 

Collaboration with suppliers is essential to overcome these challenges, but it can be dif-

ficult to achieve, especially with global suppliers who may have different expectations 

and business practices (Petersen et al., 2008). Building strong partnerships requires on-

going effort, mutual trust, and a clear understanding of each party's roles and responsi-

bilities. Firms must navigate differences in legal systems, regulatory requirements, and 

ethical standards, which can complicate collaboration efforts (Handley & Benton, 2013). 

In the academic literature, much of the research on dual sourcing strategies focuses on 

theoretical models and simulations to explore their effectiveness and optimal configura-

tions (Berger et al., 2004; (Niu, Baozhuang et al., 2019; Yu et al., 2009). These studies 

often examine the trade-offs between cost and risk in supply chain design but may not 

address the practical challenges firms face in implementing such strategies and explain 

less how the existing challenges could be overcome. There is a gap in empirical research, 

particularly qualitative case studies that investigate how firms navigate the complexities 

of glocal dual sourcing in real-world contexts. 

This thesis aims to address this gap by exploring how a European manufacturing firm 

implements a glocal dual sourcing strategy to enhance supply chain resilience. Through 

a qualitative case study approach, the research will delve into the practical considera-

tions, challenges, and benefits experienced by the firm. It will examine how the firm 

identifies and qualifies suppliers, manages communication and coordination, allocates 

resources, and fosters collaboration. By providing insights into the tactical aspects of glo-

cal dual sourcing, the study contributes to a deeper understanding of how such strate-

gies can be effectively implemented to foster supply chain resilience. 



32 

 

 

 

Figure 1. Challenges encountered when implementing a glocal dual-sourcing strategy 
(Source: Author illustration). 

 



33 

 

3 Research methodology 

In this section, the research methodoly is presented, which research design has been 

used and why, as long as an overview of the company selected for the case study, and 

how the data has been collected. 

 

3.1 Research Philosophy and Approach  

When it comes to the research philosophy behind this study, it follows the interpretivism, 

as it focuses on understanding the context within which participants operate and the 

meanings they ascribe to their actions and experiences (Saunders et al., 2023). Since the 

study aims to explore why and how companies implement glocal sourcing strategies and 

achieve resilience, it requires a deep understanding of the specific contexts of the com-

pany, the perceptions, and the interpretations of the participants. Moreover, the study 

is of an exploratory nature, and seeks to uncover new insights and understandings about 

how glocal sourcing strategies can be implemented. Interpretivist research is well-suited 

for exploratory studies as it allows for flexibility and adaptation as new insights might 

emerge during the research process. 

This master thesis aims to provide new findings and develop a potential framework for 

a resilient dual sourcing strategy based on the findings from a data collection. Therefore, 

the study is embedded in an inductive process of theory development (Saunders et al., 

2023). 

The study aims to answer the research question “how can manufacturing companies 

implement glocal sourcing strategies to achieve resilience?”. As previously stated, such 

a research question requires an exploratory approach, as it aims to understand how a 

manufacturing firm can implement a resilient global and local sourcing strategy, taking 

into account practical realities. Academic literature has focused on the study of sourcing 

strategies from a mathematical and theoretical angle, through the development and use 

of models. However, strategy implementation requires taking into account the organiza-

tional context, whether in terms of the specificities of the products purchased, or the 



34 

 

company's environment. A qualitative approach allows these complexities to be 

considered. 

 

3.2 Research Design  

3.2.1 Exploratory Case Study 

An exploratory case study design has been adopted to investigate the implementation 

of glocal dual sourcing strategies within a real-world context. This method is chosen to 

allow an in-depth investigation of the processes, practices, and contextual factors in-

volved. According to Ghauri et al. (2020), the case study is associated with exploratory 

research, and is especially efficient when it comes to the studying of a phenomenon that 

cannot be extracted of its natural setting, and when there are too many variables to be 

considered.  

 

3.2.2 Case Selection: Company Overview 

The selected case for this study is a Swiss-based multinational manufacturing company 

specializing in the production of industrial pumps and vacuum systems. The focus is on 

its research and development (R&D) and production site, located in Switzerland. Employ-

ing approximately 460 to 470 people, the company operates within the medium-volume 

production segment, with an annual output capacity of around 30,000 pumps. These 

pumps serve a diverse range of industries, therefore the company has a broad customer 

base. For instance, in the agri-food sector, the company's pumps are utilized for vacuum-

ing food products, contributing to food preservation and packaging processes. In the 

electronics manufacturing industry, their vacuum systems are essential for the produc-

tion of electronic components and microchips. The company's products thus play a role 

across various sectors, and has a significant presence in the industrial manufacturing 

landscape. 



35 

 

Financially, the company reports an annual turnover between 100 and 110 million Swiss 

Francs, reflecting robust market performance despite a slight decrease compared to the 

previous year. It is part of a larger industrial group comprising 18 factories worldwide. 

While the main research and development (R&D) and the original production site is 

based in Switzerland, the group has additional manufacturing facilities in Germany, 

where the headquarters are located, but also the Czech Republic, the United Kingdom, 

and the United States. Emerging operations in India and China are also underway, though 

these sites are not yet fully operational. The expansion into these regions signifies the 

company's strategic efforts to enhance its global footprint and competitiveness. 

Currently positioned as the second-largest provider in the global vacuum systems market, 

the company harbors ambitions to become the market leader. This objective involves 

increasing its market share and surpassing its main competitors through innovation, 

quality enhancement, and superior customer service. The company's strategic focus in-

cludes leveraging its international presence and optimizing its sourcing strategies to 

achieve these goals. 

The selection of this company as the case study is particularly relevant due to its active 

employment of both local (domestic) and global (foreign) suppliers in its sourcing prac-

tices. The company's manufacturing processes involve complex components, such as 

casting parts and motors, which have high transfer costs and long qualification times. 

These components are critical to production continuity and present challenges in sourc-

ing, necessitating robust and resilient strategies. The company's context provides a rich 

environment to explore why and how glocal dual sourcing can enhance supply chain re-

silience without compromising competitiveness. 

By examining this company's experiences, the study aims to gain in- insights into the 

practical implementation of glocal dual sourcing strategies within a multinational man-

ufacturing context. The company's ambition to become the global market leader under-

scores the importance of effective sourcing strategies in achieving strategic objectives. 

Additionally, the company's diverse industry engagement and global expansion efforts 

contribute to the complexity of its supply chain, making it an ideal subject for this re-

search. 



36 

 

The case selection follows a purposeful sampling strategy, specifically as a critical case 

(Ghauri et al., 2020), to provide valuable contributions to theory development in the 

area of glocal dual sourcing. The insights gained from this company can offer broader 

implications for other manufacturing firms seeking to enhance their supply chain resili-

ence through similar strategies. 

 

3.3 Data collection  

3.3.1 Semi-Structured Interviews 

To investigate how the company implements glocal dual sourcing strategies to achieve 

supply chain resilience, this study employed one-to-one semi-structured interviews con-

ducted via the video conferencing tools Microsoft Teams. Semi-structured interviews are 

suitable for exploratory research because they offer the flexibility to delve deeper into 

topics as new insights emerge, while still providing a consistent framework across differ-

ent interviews (Saunders et al., 2023). An interview guide was developed to ensure con-

sistency and to cover key areas relevant to the research question. The guide included 

open-ended questions related to participants' roles and responsibilities, their experi-

ences with sourcing strategies, their perceptions of glocal dual sourcing, the challenges 

and benefits associated with implementing dual sourcing, and the impact of these strat-

egies on supply chain resilience.  

A purposeful sampling approach was employed to select interview participants who are 

directly involved in the company's sourcing decisions and supply chain management. The 

sample comprised the Purchasing Director, who provides strategic insights into sourcing 

policies, company objectives, and oversees the operations of the purchasing department. 

Two Global Purchasers were also interviewed: one responsible for motors, offering per-

spectives on sourcing complex, high-demand components with long qualification times; 

and another specializing in casting parts, sharing experiences with components that 

have high transfer costs and are critical to production. Additionally, three Sourcing Buy-

ers participated in the study, providing operational viewpoints on day-to-day sourcing 



37 

 

activities, challenges faced, and the practical implementation of sourcing strategies. 

These participants were chosen due to their comprehensive and relevant knowledge of 

the company's sourcing practices, making them ideal informants for this study. 

 

Table 1. Interview Recap Table 

Respondant Role in the Company Number of 

interviews 

Interview 

Time 

Date of the 

interview 

Repondant 

A 

Purchasing Director 2 71min  

59min 

10/04/2024    

24/07/2024 

Repondant 

B 

Global Purchaser for 

Motors 

1 38min 02/08/2024 

Repondant 

C 

Sourcing Buyers (Other 

parts) 

1 40min 05/08/2024 

Repondant 

D 

Sourcing Buyers 

(Casting/Motors) 

1 47min 24/07/2024 

Repondant 

E 

Global Purchaser for 

Casting Parts 

1 52min 02/08/2024 

Repondant 

F 

Sourcing Buyers 

(Mechanical parts) 

1 34min 06/08/2024 

 

The interviews were conducted in French as it is the mother tongue of both the author 

and the interviewees, therefore ensuring fluent exchanges, nuanced expression of ideas, 

and a minimal risk of misinterpretation in the data gathered. All interviews were video-

recorded and transcribed verbatim with TurboScribe (access the 10/08/2024); each tran-

script was then reviewed line-by-line by the researcher to correct automated errors and 

ensure fidelity to the original French. Once validated, the transcripts were translated into 



38 

 

English by the author. To protect confidentiality, the anonymised excerpts that are di-

rectly relevant to the analysis are kept undisclosed in the field notes of the author. 

 

3.3.2 Secondary data collection 

To corroborate the interview evidence, I analysed a restricted set of internal records to 

which I had access during my 2023 employment with the focal firm. These included (i) 

SAP purchase-order and lead-time extracts (2019-2023), (ii) inbound quality-non-con-

formance logs, and (iii) three slide decks and KPI dashboards prepared for the sourcing 

committee. Because the material is commercially sensitive, it remains confidential and 

is not reproduced in the thesis—even in anonymised form. Instead, key figures (e.g., 

average lead-time reduction, dual-sourcing share) were used solely to triangulate inter-

view statements. 

 

3.4 Data analysis 

The data collected from the semi-structured interviews were analyzed using thematic 

analysis, a qualitative analytic method for identifying, analyzing, and reporting patterns 

(themes) within data (Braun & Clarke, 2006). Thematic analysis was selected for this 

study because it provides a flexible and systematic approach to handling qualitative data, 

allowing for rich, detailed, and complex accounts of data (Nowell et al., 2017). 

Given the interpretivist philosophy and inductive approach of the research, thematic 

analysis is relevant. It enables the researcher to explore how participants make meaning 

of their experiences and to understand the reality constructed by them (Braun & Clarke, 

2006). This method aligns with the study's aim to uncover insights into how the manu-

facturing company implements glocal dual sourcing strategies to achieve supply chain 

resilience. 

The analysis involved transcribing the recorded interviews verbatim to ensure accuracy 

and immersion in the data. Through repeated reading of the transcripts, patterns and 

themes emerged that were pertinent to the research question. This process facilitated 



39 

 

the identification of key themes related to the motivations behind adopting glocal dual 

sourcing, the implementation processes, challenges faced, and the impact on supply 

chain resilience. 

Thematic analysis is appropriate for this study as it does not require adherence to any 

pre-existing theoretical framework, allowing themes to emerge directly from the data 

(Braun & Clarke, 2006). This openness is needed for exploratory research as the aim is 

to generate new understandings rather than test hypotheses. Moreover, it supports the 

analysis of the participants' perspectives and experiences in depth, providing a nuanced 

understanding of the complex phenomena under investigation (King, 2004). 

 

3.5 Reliability, validity and limitations 

3.5.1 Trustworthiness and Validity 

To ensure the credibility and trustworthiness of the study, strategies in line with estab-

lished qualitative research methodologies were employed (Lincoln & Guba, 1985; Shen-

ton, 2004). Triangulation was utilized by comparing data from different participants to 

identify common themes and discrepancies, thereby enhancing the validity of the find-

ings (Patton, 1999). This approach helps in cross-verifying information and provides a 

more comprehensive understanding of the phenomena under study. 

Member checking was conducted by providing participants with the opportunity to re-

view their interview transcripts and the preliminary findings to confirm. This practice is 

recommended to enhance credibility and ensure that the participants' perspectives are 

accurately represented (Creswell & Miller, 2000). 

Thick descriptions of the company context, participants' perspectives, and the themes 

identified were provided to allow readers to assess the transferability of the results to 

other contexts (Ponterotto, 2006). By offering detailed accounts of the research setting 

and findings, the study enables readers to determine the applicability of the insights to 

similar contexts. 

 



40 

 

 

3.5.2 Limitations 

The study acknowledges certain limitations inherent in qualitative case study research 

(Yin, 2018; Flyvbjerg, 2006). As a single case study focusing on one company, the findings 

may not be generalizable to all manufacturing firms, which is a common limitation in 

case study research (Stake, 1995). This limitation affects the external validity of the study; 

however, the in-depth insights provide valuable contributions to understanding glocal 

dual sourcing strategies and can inform theory development (Tsang, 2014). 

Participants' responses may be influenced by their positions within the company or a 

desire to present the company in a positive light, introducing potential bias (Maxwell, 

2013). Social desirability bias and positional bias can affect the authenticity of the data 

collected. Efforts were made to mitigate this through careful questioning, and assuring 

participants of confidentiality and anonymity, as recommended by King and Horrocks 

(2010). 

Time constraints may limit the depth of investigation into the long-term outcomes of the 

implemented strategies. The cross-sectional nature of the study provides a snapshot in 

time, which may not capture evolving dynamics or long-term effects (Pettigrew, 1990). 

Longitudinal studies could provide additional insights into the sustainability and long-

term impact of glocal dual sourcing practices, allowing for the observation of changes 

and developments over time (Saunders et al., 2016). 

 



41 

 

4 Results 

Part 4 presents the empirical findings of the single-case study, charting how the focal 

manufacturer’s sourcing model evolved from a cost-driven, globally focused approach to 

a “glocal” dual-sourcing configuration. The section first unpacks the motivations behind 

the shift, then details the processes used to develop and manage parallel local and 

distant suppliers, and finally highlights the strategy’s practical constraints. 

 

4.1 Why the Firm Uses Glocal Dual Sourcing 

4.1.1 Initial Motivation: Cost Savings with Global Suppliers 

The firm's initial motivation for adopting a dual sourcing strategy was driven by the goal 

of achieving cost savings through global suppliers. 

Respondent A stated: 

"But more and more, we have created this policy of double sourcing because we realised 

that there were some very interesting prices, obviously in low-cost countries." 

Similarly, Respondent F mentioned: 

"Initially, since I was asked to cut costs and make a profit, you take the High Runners and 

then you take the high-cost parts. Sometimes the prices were divided by 4." 

These statements indicate that the firm was initially focused on reducing procurement 

costs by leveraging the lower production and labor costs available in low-cost countries. 

By targeting high-volume and high-cost components, referred to as "High Runners", the 

firm could achieve significant cost reductions, sometimes reducing prices by up to 75%. 

However, the pursuit of cost savings was not without its challenges. The firm recognized 

that while global suppliers offered financial benefits, they also introduced new risks and 

complexities that needed to be managed effectively. 



42 

 

The COVID-19 pandemic has further accelerated this process. Emphasis is being placed 

on securing the supply chain, redoubling interest in the dual sourcing strategy, as ex-

plained by respondent E: 

“It's true that Covid has played a big part in speeding up the change in these sourcing 

strategies, which means that we are still aiming to reduce costs, which are ultimately 

reflected in the price of the final product. But we also put a lot of emphasis on security, 

and today we're really in a phase of securing, of double sourcing.” 

The sourcing strategy of the firm obviously still aims to reduce the cost of the purchased 

product, however it is doing so while considering the security of the supply chain. Tran-

sitioning from a sole focus on cost savings, the firm began to consider other factors that 

impacted their supply chain efficiency and resilience. 

 

4.1.2 Supply Chain Risks and the Need for Resilience 

Supply chain resilience considerations are even more important for the firm since they 

have a long supplier qualification process, as stated by respondent A who is in charge of 

the purchasing department of the focal firm: 

“we adopted, I would say, the automobile method. So, to bring in a supplier a supplier a 

we have to go through a fairly long process of qualification process.” 

But they also have some part for which the qualification time is long as well. In this case 

even switching part from one validated supplier to another could be time-consuming. If 

the new supplier never had to provide the firm with this type of part, it will have to go 

through the whole process of product qualification. Respondent F gave the example of 

the bearing commodity:  

“In the case of bearings, it's already more complicated because these are extremely sen-

sitive rotating elements for us, which require long-term testing. So it's impossible to 

change supplier in the blink of an eye. In this case, we really needed a second source to 

secure the one we had in Europe.” 

 



43 

 

Such components with a long qualification time are vulnerable to potential disruptions, 

or production failure and represent a risk for the supply chain, since finding a viable new 

source within a short period of time is impossible. Finding and developing a new source 

abroad is way for the firm to secure a second source, and make some cost savings at the 

same time. Moreover, respondent A also elaborated on the risk of depending on a single 

supplier: 

“We have two or three cases where in fact we have a single sourcing supplier. That's 

dangerous for price reasons.” 

Dependence on a single supplier leaves the company vulnerable to production failure, 

whether operational or disruption-induced, and vulnerable to fluctuations in the prices 

proposed by the supplier. 

However, working with distant suppliers also entails risks. As the firm expanded its global 

sourcing efforts, they became increasingly aware of various risks associated with relying 

solely on foreign suppliers. These risks highlighted the need for a more resilient supply 

chain strategy, and comforted the firm in its dual sourcing including both a domestic 

supplier and a foreign supplier. 

Respondent A pointed out geopolitical risks: 

"If tomorrow China decides to invade Taiwan and sanctions are imposed on China, I may 

no longer be able to source from China. So I'd be very happy to have my European sup-

plier solution. That's a typical case we're looking at right now." 

Respondent B added: 

"As you can see, geopolitically it's quite complicated. Ten years ago, there was no risk. 

But now it's become something to be taken into account in the dual source." 

 Transportation risks were also a significant concern as sourcing from afar increases 

transport risks, whether it is transport cost, or delivery delays. Respondent A gave the 

recent example of the Red Sea crisis: 



44 

 

“This crisis in the Red Sea means that we have to go around Africa. That means a few 

weeks more shipping. So the cost of transport is higher, that's for sure. But beyond the 

cost of transport, there's the delay in obtaining parts.” 

These insights reflect the firm's growing awareness of geopolitical uncertainties that 

could disrupt their supply chain. Political conflicts, trade sanctions, and diplomatic ten-

sions could suddenly make foreign suppliers inaccessible, threatening production conti-

nuity.  

Recognizing these risks, the firm understood that relying solely on single suppliers, 

whether local or foreign, could jeopardize their operations. Glocal dual sourcing ap-

peared as a solution to enhance supply chain resilience to protect against these vulner-

abilities. Transitioning from this realization, the firm considered how engaging in global 

sourcing while keeping a domestic anchor point is a way for the firm to mitigate these 

risks. 

 

4.1.3 Necessity of the Glocal Approach 

To effectively manage the identified risks while still benefiting from cost savings, the firm 

determined that a glocal dual sourcing approach, combining both global and local sup-

pliers, was essential. One of the first advantages is to have two suppliers in two different 

parts of the world 

Respondent B emphasized the importance of geographical diversification: 

"The idea is always to have one source and a second source that is developed in a differ-

ent place, to avoid a local risk, for example." 

This approach allows the firm to mitigate regional risks by not having all suppliers con-

centrated in one geographical area. If a geopolitical event, natural disaster, or other re-

gional disruption affects one supplier, the firm can rely on the other supplier located in 

a different region. 

Respondent A further noted the benefits of combining global cost advantages with local 

reliability: 



45 

 

 

"My supply chain is becoming resilient. And it can be competitive thanks to China. After 

all, that's my goal." 

By maintaining relationships with both local and global suppliers, the firm can achieve 

cost savings while also ensuring supply chain resilience. The local supplier offers ad-

vantages such as proximity, ease of communication, and quicker response times to issues, 

whereas the global supplier provides the financial benefits of lower production costs. 

Respondent A also highlighted the flexibility this strategy provides: 

"The advantage of dual sourcing is that it gives me the potential to adjust to any range 

of risks that may arise. Whatever the risk." 

This adaptability is crucial in an unpredictable global environment. The firm can adjust 

order volumes between suppliers based on current conditions, such as lead times, trans-

portation costs, or emerging risks. 

Moreover, Respondent E pointed out the necessity of the glocal approach to remain 

competitive: 

"If we develop local production and only source locally on our European lines, we're going 

to have a real problem with competitiveness." 

This underscores that solely sourcing locally could lead to higher costs, making the firm's 

products less competitive in the global market. 

By adopting a glocal dual sourcing strategy, the firm strikes a balance between cost effi-

ciency and supply chain resilience. It leverages the strengths of both global and local 

suppliers to maximize efficiency, mitigate risks, and maintain competitiveness. 

Transitioning from understanding why the firm chose this approach, the next focus is on 

how the firm implements the glocal dual sourcing strategy in practice, navigating the 

associated challenges and capitalizing on the benefits. 

 

 



46 

 

4.2 How the Firm Implements Glocal Dual Sourcing 

4.2.1 Initial Development with Local Suppliers 

The firm begins its glocal dual sourcing strategy by initially collaborating with local sup-

pliers during the product development phase. This approach simplifies communication 

and facilitates technical coordination. 

Respondent A explained: 

"When we're going to do dual sourcing, [...], we always start by working with a single 

supplier." 

This indicates that the firm prioritizes working with a single local supplier during the ini-

tial stages to avoid complicating the development process. By doing so, they can manage 

the design and specifications of the new product without the added complexity of coor-

dinating with multiple suppliers. 

Further emphasizing the importance of local collaboration, Respondent A added: 

"First of all, the design is fixed with a single supplier. And generally, this first launch is 

very often a local supplier. They know us well. We know our engineering. We need meet-

ings with them to reach agreement, to agree on the technique, the weight, even on the 

price we're looking at in the end." 

The familiarity and established relationships with local suppliers enhance communica-

tion efficiency. Local suppliers understand the firm's engineering standards and can par-

ticipate in frequent meetings to align on technical aspects and pricing. This close collab-

oration is crucial for fine-tuning the product design. Moreover, respondent A also iden-

tified another incentive to start initial development with a local source known by the 

firm: 

“When you have this dual sourcing strategy, the advantage of starting with a local sup-

plier is that it's easier to explain internally.” 

 



47 

 

Respondent B further elaborated on the firm resistance to change due to previous bad 

experiences:  

“I think we've also had some bad experiences in the past, which means that we're always 

a bit cautious about change. Other teams in the company can also put obstacles in the 

way. It's also important not to fight internally to move projects forward” 

Working with a close supplier, known by the firm, and with whom collaboration is easier, 

reduces the internal resistance the purchasing team might encounter when implement-

ing dual sourcing. It is especially important since sourcing decisions are validated with 

the support of the R&D and the Quality department. Respondent F explains:  

“We now have rules that we have to follow, where R&D is questioned about the changes 

or the additional suppliers we are going to introduce for the product. Then there's quality. 

Once we have the two green lights, we can send the sample orders to the supplier.” 

In this case, initially working with a close supplier facilitates internal and external align-

ment. The other benefit of starting initially with a domestic supplier before transitioning 

to dual sourcing by adding the foreign supplier is the cost savings incentive. This direc-

tionality of the dual sourcing gives more value to it as it is now a sourcing strategy allow-

ing the firm to make cost reduction and to secure its supply chain at the same time. 

Implementing dual sourcing purely for supply chain security, without the incentive of 

cost savings, is challenging due to additional costs and resource requirements. Respond-

ent F highlighted management reluctance: 

"Developing such a strategy inevitably requires extra costs... From the moment that there 

isn't an electroshock that says watch out it can be problematic, as it was the case with 

Covid for instance, things don't really change." 

Without a clear cost benefit, convincing management and stakeholders to invest in dual 

sourcing for resilience alone is challenging. It often takes a significant disruption to 

demonstrate the value of such investments. 

The point is now to understand how the firm transitioned from this initial phase by inte-

grating a foreign supplier into their sourcing strategies and achieving glocal dual sourcing. 



48 

 

 

 

4.2.2 Transition to Dual Sourcing with Global Suppliers 

After stabilizing the product design and specifications with the local supplier, the firm 

begins the process of identifying and qualifying global suppliers to achieve cost savings 

and enhance supply chain resilience. 

Respondent A described this transition: 

"We often work locally first. And then, little by little, we ask for bids from our Chinese and 

Indian sourcing hubs." 

By gradually seeking bids from global suppliers, the firm assesses potential cost benefits 

while ensuring that these suppliers can meet their technical and quality requirements. 

The second point of this transition is for the firm to assess if the foreign source is actually 

profitable. Respondent A explains the calculation at play while doing so:  

“To go or not to go, that's already a calculation that guides us. We look at how much 

he'll sell us the part. You have to add a bit of transport costs. You may have to add cus-

toms duties. You also have to add storage costs, because when I bring in a part from 

China, I'm not going to order one part at a time, I'm going to bring in a container. We've 

come up with a rule of thumb that says we need to save about 15% compared with the 

European solution.” 

So the firm use a total cost calculation to ensure that the development of the foreign 

source results in cost savings. Then the firm will engage in the qualification of the new 

foreign supplier and the product it will provide the firm with, which is a meticulous and 

time-consuming process. Respondent A noted: 

"If we really think there's an interest, we'll have to go through the whole process of qual-

ifying this new supplier. So it's a very long process. First, you have to fine-tune the product 

and then you have to approach the potential distant supplier." 

 



49 

 

This process involves extensive evaluations to ensure that the global supplier can deliver 

products that meet the firm's standards. It includes audits, capacity assessments, and 

compliance checks. Frequent communication and visit on site are therefore essential in 

this process. Distance and cultural barriers are factors that complicate this approach. 

Respondent A explained: 

"With Asia, you only work half a day. We mustn't forget that. [...] With a Chinese supplier, 

you also realise that their understanding and response is not quite what you would ex-

pect. And that's a question of culture." 

These operational challenges which include time zone differences, language barriers, 

and cultural misunderstandings, make it difficult to coordinate with distant suppliers. 

Therefore, to assist in identifying foreign and cost-efficient suppliers, the firm leverages 

its sourcing hubs in low-cost countries. Respondent E explained: 

" What we call a purchasing hub is made up of buyers and quality specialists whose job 

is to monitor suppliers on a day-to-day basis, develop suppliers, monitor the quality of 

parts and deal with all the things that can't be done easily when you're at a distance." 

These local purchasing representatives play a role in bridging cultural and communica-

tion gaps. They conduct supplier audits, oversee quality processes, and facilitate negoti-

ations, ensuring that the firm can effectively collaborate with global suppliers. They are 

especially important as complex products requiring a dual source have long qualification 

and testing period. The development of a new foreign source implies continuous collab-

oration, communication and quality monitoring with the supplier to ensure that the 

product meets the firm requirement. The sourcing hubs therefore allow the firm to iden-

tify foreign suppliers, qualify them, and then monitor the qualification of the product 

that will be sourced from this supplier.  

Respondent B emphasized the value of sourcing hubs: 

"The sourcing hubs are a great help. I think they add an enormous amount of value to 

the Group. Having people who are good performers, who also know the suppliers in the 

different areas, helps to clarify things, and also helps to have a better relationship and 

better understanding of the culture. It helps to avoid misunderstandings and 



50 

 

misinterpretations, and it gives you important information that might not otherwise have 

been shared." 

These insights highlight how the firm leverages its sourcing hubs in foreign countries to 

identify and integrate global suppliers effectively, by avoiding cultural barriers, facilitat-

ing communication and therefore facilitating the alignment of all the internal and exter-

nal stakeholders. 

The firm has now transition to glocal dual sourcing, and needs to manage both local and 

global suppliers, which requires careful coordination and strategic planning while also 

introducing new complexities in the supply chain. 

 

4.2.3 Managing Glocal Dual Sources 

Once both local and global suppliers are integrated into the supply chain, the firm ac-

tively manages the allocation of orders and monitors supplier performance to optimize 

cost savings and maintain supply chain resilience. 

Respondent A highlighted the use of their ERP system for order allocation: 

"I have a file, I call it the dual source file, which lists the parts that can be bought from 

two suppliers. And we simply establish a percentage. The SAP ERP system triggers orders 

based on this percentage. Generally, we do 80-20, 75-25, 50-50 or 90-10." 

By setting specific quotas for each supplier, the firm can control the flow of orders to 

balance cost efficiency and supply security. Adjusting these percentages allows them to 

respond to changing market conditions, supplier performance, and emerging risks. 

Respondent F provided insight into how they adjust supplier quotas over time: 

"The aim now is to make a quota, what we call a quota in our system, where we say that 

we're keeping the supplier here in Europe close by, and we set a 50-50 quota, for a certain 

period of time. Then, if we see that everything is working well in the delivery settings, we 

can increase the quota to 80% in Asia and 20% here, still to have a foot in both compa-

nies." 



51 

 

This gradual shift in order allocation ensures that the firm maintains relationships with 

both suppliers, preserving the ability to pivot between them as needed. It enhances the 

firm's ability to mitigate risks associated with regional disruptions, supplier dependency, 

and logistical challenges. Respondent A discussed the flexibility provided by dual sourc-

ing: 

"If, tomorrow, China were to have major difficulties, where in fact lead times are very, 

very long, as we can see today, I could very well readjust [the quota] in favour of my 

European supplier." 

This flexibility is crucial in managing risks such as geopolitical tensions, natural disasters, 

or transportation delays that could impact suppliers in a specific region. Respondent D 

shared an example of how dual sourcing aided during the COVID-19 pandemic: 

"The local supplier couldn't keep up with the volume, so the Chinese supplier sent us parts 

directly machined, so that saved us. On the other hand, China was unable to deliver at 

one point since during Covid, the borders were close