Journal on Policy and Complex Systems
managers must consider in the supplier selection decision ( e . g ., price , quality , flexibility ), and no single sourcing option will always perform best with respect to all criteria , it is not possible for a buyer to simply rank different options using a single attribute ( Elmaghraby , 2000 ). As a result , a wide variety of decision-making methodologies have been applied to the problem of supplier selection , including multicriteria decision analysis ( MCDA ) methods and mathematical programming models . For comprehensive reviews of these methods , see de Boer , Labro , and Morlacchi ( 2001 ) and Ho , Xu , and Dey ( 2010 ).
VBO Sourcing Strategies
Sourcing strategies and decisions for VBOs are not entirely different from
those of traditional organizations . To remain financially viable , VBOs must consider economic objectives and risks when designing their supply chains . However , the emphasis that traditional organizations place on these factors is typically inappropriate for VBOs , which tend to focus on elements that impact nature and society ( Shrivastava , 1995 ). The relative importance of these objectives may differ among different organizations . For some VBOs , the social / environmental sustainability imperative outweighs or eclipses the profit motive , whereas in other organizations , financial considerations are the main driver of decision-making . For example , Koch and Hamm ( 2015 ) interviewed the managers of 11 Midwestern food hubs to assess the degree to which they focus on increasing access to underserved consumers . They found that , while the managers were interested in increasing food accessibility , in all cases , their main objective was to run a viable business , with access as a secondary priority .
The debate over single and multiple sourcing strategies is not widely discussed in the literature on VBOs . However , there is a clear emphasis on the importance of viewing suppliers as collaborative strategic partners , rather than the more traditional view in which they are leveraged through power imbalances . Stevenson and Pirog ( 2008 ) described the concept of a values-based supply chain ( VBSC ) framework , in which the objective of supporting the well-being of all participants is incorporated into traditional supply chain management strategies . VBOs and VBSCs are typically characterized as “ flat ” ( i . e ., nonhierarchical ) organizations whose participants work collectively to achieve a common aim , and they tend to allocate decision-making power to individuals and local communities ( Pullman & Dillard , 2010 ). This focus on long-term and egalitarian supply chain relationships suggests that VBOs might prefer single sourcing over multiple sourcing . However , when buyers specifically target sustainable and / or local suppliers as part of their social mission , working with multiple small-scale suppliers may be necessary to satisfy demand ( Feenstra , Allen , Hardesty , Ohmart , & Perez , 2011 ). A VBO may also use multiple sourcing as a strategy by which it can provide financial support to
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