Over the last decade, outsourcing has proved to be a relevant strategic option for companies narrowing their operations to focus on core competencies. This paper analyses the process of outsourcing manufacturing to cost-efficient and innovative suppliers in support of internal resources and capabilities. A scientific reference model founded on manufacturing strategy is proposed to help choose the right level of analysis and steer the research process. From this, a system model is developed to enable identification of the production system elements and internal support functions. Finally, a framework that links the phases of the entire outsourcing process to strategic planning is synthesised. The framework includes a logical sequence of key activities with built-in performance measures and expected output for each of the phases. The research methodology combines theory study with case study and action research in Aalborg Industries, which operates in the heavy industry. Thereby, the research pursues both academic and industrial application.
['Jesper Momme']
Framework for outsourcing manufacturing: strategic and operational implications