Number 1 The West East Institute 1 OUTSOURCING FROM A SUPPLIER PERSPECTIVE

Content Provider	Semantic Scholar
Author	Nordigården, Daniel
Copyright Year	2015
Abstract	This paper investigates outsourcing from a supplier perspective. More specifically, it focuses on strategic and also operational factors that are addressed when a supplier considers taking 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 literature to date, and this paper represents a step towards complementing this predominant customer focus. The paper applies a case study approach. Data collection is based on 23 in-depth interviews in the Scandinavian wood products industry. The paper finds that cost advantages in comparison with customers’ large-scale capacity production are difficult to achieve in the context studied. Under the circumstances, there are limited possibilities for economies of scale; in addition, new investments are needed to build manufacturing capacity. The recommendation for practitioners is to consider what new competencies are required when entering into an outsourcing agreement. In addition, it is critical that the outsourced manufacturing is profitable by itself, and that the revenues derived from the delivered components are sufficient to cover the resulting costs.
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://www.westeastinstitute.com/journals/wp-content/uploads/2015/05/1.Nordigarden.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article