How do Firms in Different Sectors Organize their Supply Chains? Evidence from Transaction-Level Import Data

Sebastian Heise, Justin Pierce, Georg Schaur and Peter K. Schott

No 1405, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Heise et al. (2021) develop a model-based empirical measure—sellers per shipment (SPS)—to characterize how firms organize supply chains in response to a quality control problem. High SPS indicates spot-market purchasing with costly inspections, while low SPS suggests long-term relationships where buyers pay an incentive premium to prevent cheating. Here, we document intuitive variation in US importers' SPS across sectors, and that show shipping characteristics such as average price, quantity shipped and shipment frequency are in each sector consistent with the model of sourcing developed in Heise et al. (2021), providing further confidence in the measure.

Keywords: Supply chain; Uncertainty; Trade war; Procurement (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 F23 (search for similar items in EconPapers)
Date: 2025-02-27
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgif:1405

DOI: 10.17016/IFDP.2025.1405

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