Outsourcing from a supplier perspective
2015 (English)In: Journal of WEI Business Economics, ISSN 2166-7918, Vol. 4, no 1, 1-13 p.Article in journal (Refereed) Published
Thispaper investigatesoutsourcing from a supplier perspective. More specifically, it focuses on strategic and also operational factors that are addressed when a supplier considerstaking over outsourcing that they have not handled previously. The supplier side has not been given the same attention as the customer side in the outsourcing literatureto date,and this paper represents a step towardscomplementingthis predominant customer focus. The paper applies acase study approach. Data collection is based on 23 in-depth interviewsin the Scandinavian wood productsindustry. The paper finds thatcost advantages in comparison with customers’large-scale capacity production are difficult to achieve in the context studied. Under the circumstances, there arelimited possibilities for economies of scale;in addition,new investmentsare neededto build manufacturing capacity.The recommendation for practitioners istoconsider what new competencies are required when entering into an outsourcing agreement. In addition, it is critical that the outsourced manufacturing is profitable byitself,and that the revenues derived from the delivered components are sufficient to cover theresultingcosts.
Place, publisher, year, edition, pages
2015. Vol. 4, no 1, 1-13 p.
Outsourcing, forward integration, supplier value, adding strategies
Economics and Business
IdentifiersURN: urn:nbn:se:liu:diva-114782OAI: oai:DiVA.org:liu-114782DiVA: diva2:792412