Strategic Procurement under Supply Constraints - An Integrated Sourcing Framework for Last-Mile Airline Catering

Abstract

Airline catering procurement operates within a constrained environment marked by supplier scarcity, operational interdependence, and strict regulatory oversight. These conditions amplify cost pressures and increase vulnerability to service disruptions. While previous studies have examined procurement governance, sourcing models, and digitalisation individually, limited research has integrated these dimensions within the context of supply-constrained service industries. The purpose of this study is to develop an Integrated Sourcing Framework that aligns governance structures, sourcing configurations, and digital enablement to enhance resilience and efficiency in airline catering procurement. Using an inductive qualitative approach, insights were gathered through semi-structured interviews with procurement professionals representing strategic, managerial, and operational functions. Findings reveal the importance of adaptive governance portfolios that adjust to market maturity: relational governance ensures continuity in monopoly contexts, hybrid structures balance flexibility and control in semi-competitive environments, and modular sourcing promotes efficiency in competitive markets. Digital capability emerged as the backbone of procurement integration, enabling transparency, collaboration, and proactive coordination. These findings informed the development of the Integrated Sourcing Framework and a three-phase Implementation Roadmap (Stabilise, Integrate, Optimise), which together offer a structured pathway for adaptive sourcing transformation. The study contributes to procurement governance and service-modularity literature by embedding digitalisation as an enabling mechanism for strategic adaptability. Limitations include its single case focus and the absence of supplier perspectives, which restrict generalisability but provide a foundation for future comparative and longitudinal research.