Management and Economics
| Open Access | Integrated Cost Optimization and Collaborative Strategies in Supply Chain Management: Leveraging Vendor Development and Strategic Sourcing
Dr. Alexander Morton , Global Business School, London, United KingdomAbstract
The contemporary business environment is increasingly characterized by globalized supply chains, heightened competition, and evolving market uncertainties. Organizations are compelled to adopt strategies that optimize costs while maintaining operational efficiency and strategic flexibility. This research investigates the integrative role of cost optimization, vendor development, and strategic sourcing within supply chain management (SCM). By synthesizing insights from both theoretical frameworks and empirical studies, this study elucidates how firms can achieve sustainable competitive advantage through the strategic alignment of cost management practices, inter-organizational collaboration, and supplier relationship management. Drawing upon activity-based costing, structural and executional cost management, and collaborative network theories, the study highlights mechanisms through which firms can identify cost drivers, enhance resource allocation, and foster trust-based relationships with key suppliers. The paper further explores the duality of collaboration, emphasizing the interplay between inducements and opportunities in inter-firm linkages and the implications for long-term commitment and performance. Findings underscore that integrated approaches combining strategic sourcing, vendor development, and advanced cost management techniques are instrumental in achieving both operational efficiency and strategic resilience. The study contributes to SCM literature by bridging the gap between theoretical constructs and practical implementation strategies, offering a roadmap for managers aiming to enhance value creation within complex, multi-tiered supply chains.
Keywords
Supply Chain Management, Cost Optimization, Vendor Development, Strategic Sourcing
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