Changing Sourcing Strategies: Transferring module manufacturing

Abstract

This thesis is a part of implementing new sourcing strategy to the case company business unit. Module manufacturing was transferred to local subcontractor and piloted in low cost country module supplier. New sourcing process was implemented to support the outsourcing project. This project enables the production volume increase without increasing human resources. Transfer was conducted in phases. The first phase included pilot deliveries with modules suppliers. The final phase was to start executing the new process and sourcing strategy. The transfer process led to an abandonment of single sourcing method. Variable workload is managed with the help of several suppliers, which is important during to demand peaks. The main outcome of the thesis is the implementation of the sourcing strategy and finding the improvement areas to better quality. Non-automated manufacturing in high-cost-country is required to adapt such a strong changes in order to sustain manufacturing sites. The paper is based on the theories of Supply Chain Management and Strategic Sourcing.