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

The automotive industry appears to have shifted from costoriented 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.