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Dynamics of sourcing A. & , O., 2007, , ,: Strategic implications of outsourcing and insourcing
Jönköping University, School of Engineering, JTH, Industrial Engineering and Management. Jönköping University, School of Engineering, JTH. Research area Industrial Engineering and Management. (Produktionssystem)ORCID iD: 0000-0003-3236-5648
Jönköping University, Jönköping International Business School, JIBS, EMM (Entrepreneurship, Marketing, Management). Jönköping University, School of Engineering, JTH. Research area Industrial Engineering and Management.ORCID iD: 0000-0003-2111-5977
Escola Tècnica Superior d’Enginyeria Industrial de Barcelona, Barcelona, Spain.
Escola Tècnica Superior d’Enginyeria Industrial de Barcelona, Barcelona, Spain.
2007 (English)In: Proceedings of the 14th International Annual EurOMA Conference- Managing Operations in an Expanding Europe, 2007Conference paper, Published paper (Refereed)
Abstract [en]

From a strategic manufacturing perspective, companies are facing challenges in finding a balance in what they do on their own and what their suppliers do. This balance requires some times that companies are outsourcing and sometimes insourcing activities. One conclusion is that outsourcing should be considered as a strategic decision that is not easily made by purchasing or operations departments. Many companies tend to outsource more and more of their manufacturing to specialists, which however does not mean that companies can afford to loose their competence in manufacturing. It is still essential that the companies, even though another company performs parts of the actual manufacturing, understand the special conditions for manufacturing. Otherwise they are not in a position where they can discuss product development, specification of the different tasks that they want the contractors to do, and they can certainly not make the right decisions when buying components and parts from suppliers. Outsourcing decisions also need to be strategically justifiable; outsourcing only for cost reasons is rarely successful. Outsourcing should provide other advantages in terms of improvement of competitive priorities. For different reasons, it may also end up in a situation where the company needs to insource previously outsourced activities.

Place, publisher, year, edition, pages
2007.
Keyword [en]
Insourcing, outsourcing, supplier involvement, global sourcing
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
URN: urn:nbn:se:hj:diva-3341OAI: oai:DiVA.org:hj-3341DiVA, id: diva2:34161
Available from: 2007-09-19 Created: 2007-09-19 Last updated: 2015-12-30

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Winroth, MatsDanilovic, Mike

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