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Evolution of Strategic Sourcing in the Automotive Industry: From Cost-Cutting to Value Creation

by Manthan Lad
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International Journal of Computer Applications
Foundation of Computer Science (FCS), NY, USA
Volume 187 - Number 43
Year of Publication: 2025
Authors: Manthan Lad
10.5120/ijca2025925743

Manthan Lad . Evolution of Strategic Sourcing in the Automotive Industry: From Cost-Cutting to Value Creation. International Journal of Computer Applications. 187, 43 ( Sep 2025), 1-8. DOI=10.5120/ijca2025925743

@article{ 10.5120/ijca2025925743,
author = { Manthan Lad },
title = { Evolution of Strategic Sourcing in the Automotive Industry: From Cost-Cutting to Value Creation },
journal = { International Journal of Computer Applications },
issue_date = { Sep 2025 },
volume = { 187 },
number = { 43 },
month = { Sep },
year = { 2025 },
issn = { 0975-8887 },
pages = { 1-8 },
numpages = {9},
url = { https://ijcaonline.org/archives/volume187/number43/evolution-of-strategic-sourcing-in-the-automotive-industry-from-cost-cutting-to-value-creation/ },
doi = { 10.5120/ijca2025925743 },
publisher = {Foundation of Computer Science (FCS), NY, USA},
address = {New York, USA}
}
%0 Journal Article
%1 2025-09-23T00:37:19.801049+05:30
%A Manthan Lad
%T Evolution of Strategic Sourcing in the Automotive Industry: From Cost-Cutting to Value Creation
%J International Journal of Computer Applications
%@ 0975-8887
%V 187
%N 43
%P 1-8
%D 2025
%I Foundation of Computer Science (FCS), NY, USA
Abstract

The automotive industry appears to have shifted from cost-oriented sourcing to value-oriented sourcing between 2018–2025, spurred by electrification, digitalization, supply-chain disruptions, and sustainability. Through a systematic review of the research literature, industry reports, and case studies, this article shows that firms which pursued value creation were more innovative, more resilient, and more competitive than their cost-oriented competitors, such as manufacturers' responses to semiconductor shortages, EV battery partnerships, and ESG requirements. Some firms developed collaboration with their suppliers, created online, automated sourcing processes, and implemented commodity management processes that enabled them to improve risk management and scalability. For manufacturers, suppliers, and policymakers, value-oriented sourcing is likely to shift from being perceived as a trend to being perceived as a strategic imperative.

References
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Index Terms

Computer Science
Information Sciences

Keywords

Strategic sourcing automotive industry value creation supplier relationships digital transformation sustainability supply chain management procurement evolution

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