For a long time, companies have been using outsourcing as main strategy to overcome obstacles and gain competitive advantage. The reasons for doing so are many, including the possibility of cutting cost, sharing risk and focusing on the core competences. However, current research shows that outsourcing has reached its limits and companies start considering alternative solutions and revising their sourcing strategy. Therefore, an upcoming trends is to backsource. This describes the process of taking previously outsourced functions back in-house. As outsourcing brings a loss of knowledge, the matter of backsourcing is not always an easy one and therefore, bringing various challenges, which need to be overcome.The decision for backsourcing is taken when the outsourcing strategy no longer provides the best solution for the company to gain competitive advantage. On the one hand, the outsourcing partner might not be able to deliver the desired quality of the products or services anymore; on the other hand, the company itself might discover new opportunities, which provide more profit. Important motivations for backsourcing include regaining control of the core business activities, dissatisfaction with the outsourcing company, merger and acquisition etc.There are many risks and challenges managers have to consider when deciding to backsource an activity. The challenges derive from both internal and external issues and may vary based on the characteristics of each company and the business environment. Moreover, being aware of critical success factors can enable a company to fasten the backsourcing project and bring it to an end more successfully.This thesis aims at increasing the understanding of motives, challenges and critical success factors for manufacturing companies when conducting a backsourcing project. Therefore, a middle-sized manufacturing company’s backsourcing project has been investigated. From this case study, we were able to derive essential factors by interviewing managers in the under-explored field of manufacturing companies’ backsourcing projects.The result of this study shows that the matter of backsourcing plays a major role in every company’s strategy. Motivations for backsourcing could be connected either to dissatisfaction, the opportunity to gain market share or the opportunity of acquiring a competitor. Being clear about these motives and evaluating them carefully is the first step of the process. By having a strong project team, the challenges can be handled and overcome. Moreover, identifying and knowing the critical success factors enables the company to allocate its resources and in this sense to bring the project successfully to an end.

By the end of 20th century many industries including automotive supply industry have undergone significant merger and acquisition activity. Mergers and acquisitions have led to geographical expansions of OEM’s (Origininal Equipment Manufacturer) across country borders and across continents. This tendency can be explained by the pressure to manufacture better equipments and less expensive vehicles which lead to specialization and internationalization of the truck industry. Plus, these consolidation trends are still actual phenomena in truck industry and can bring structural and strategic changes in the supply chain. Apparently. these trends bring a challenge for automotive suppliers, which is how to sustain competitive market position after the merger of important customers. By using the example of Scania and MAN consolidation, this research adopts case-study method with qualitative approach. The intent is to clarify how the buyer–supplier re-lationship is influenced by post-merger sourcing strategy in the automotive industry, with the purpose to investigate and analyze supplier strategic response mechanisms against pos-sible impacts of post-merger sourcing strategy in truck industry. The findings emphasize the importance of sourcing strategy changes in achieving the motives of the merger. We also identify a set of specific supplier selection criteria that appear to cause changes in the sourcing strategy of merged OEMs which, ultimately, influ-ence their purchase decisions.Then it is observed that dimensions like interaction, power-balance, and collaboration in buyer-supplier relationships vary with regards to sourcing strategy changes. Together, the findings contribute to our understanding of the strategic reponse mechanisms like business reengineering and restructuring through which suppliers can improve their market-related performance and better postion themselves in front of the merging customers.

This dissertation consists of two parts. The first part isabout“Managing buyer-supplier relationships in autoproduction chains ­ a case study of Volvo and its supplierrelationship management”. The second part is about“Managing buyer-supplier relationships in telecom supplychains ­ a case study of Ericsson and its supplierrelationship models in different business situations”. The scope of this study is restricted to supply chains inautomotive and telecommunication industries, where the successof supply processes is dependent on how well a company managesits supply chain with horizontal or vertical integration tofulfill customer demands. The research is carried out as a number of case studies ofbuyer-supplier relationship management in the auto and telecomsupply chains. The aim was to analyze how a company fulfillscustomer demand in the best way through different supplierrelationships, and how and why alternative relationship typesare used in reality. The study is based on the relationship between two focalcompanies and their suppliers. Case study methodology is used,and data is collected from selected cases through interviewsand observations. Analysis is carried out within and acrosscases. From the case interpretation and analysis, conclusionsare drawn as to which strategic level of buyer-supplierrelationship is appropriate for different situations. As a result and in conclusion, a static supplychain-reaction model is built at the end of the Part I. Thestatic model describes the importance of collaborativebuyer-supplier relationships in the product developmentprocess. Based on this model, it is concluded in Part II thatthe most suitable supplier relationship is different fordifferent products. For the same product, the most appropriatebuyer-supplier relationship varies with the product’s lifecycle timing. Therefore, two dynamic buyer-supplierrelationship models under different business conditions and indifferent product life-cycle periods are created in Part II.The models apply to dynamic processes, not to interactingcompany organizations in general. The study increases the knowledge regarding selection of themost appropriate supplier relationships in different businesssituations. Key words:buyer-supplier relationship, sourcingstrategy, supply chain management / <p>Qc 20130827</p>

Purpose - The purpose of this study is to investigate potential for and cost related impact of internal lead time reduction through coordination between materials supply and a production activity of customer-order-unique products. In order to achieve the purpose two questions are answered; 1. How can with respect to sourcing strategy, coordination between materials supply and production activity of customer-order-unique products be achieved? 2. How does a coordination affect cost items in related areas of the business? Method – Based on literature in the area of materials supply a theoretical framework for the study was established. The company JELD-WEN, an industrial manufacturer with customer-order-unique-production of fire- and safety-doors was used for a case study. Data collection was performed through interviews, observations and document studies. A comparison between the theoretical framework and empirical data generated the final results. Findings – Using a hybrid sourcing strategy, changes in materials supply through an internal call-off together with the materials feeding method kitting proves potential to reduce the internal lead time in the manufacturing process. An economic impact of such coordination with a production activity has been found for three cost items; handling cost (increase), administrative order cost (increase/decrease) and inventory carrying cost (increase/decrease). Implications – The study does not contribute to new theory in the field. Instead existing theory and relations defined in the theoretical framework have been verified by the case study. Internal lead time reduction identified in the study may be used in other ways than by the means of an improved customer offer. This can be done through sharing time to other time-exposed activities in the manufacturing process or as an additional safety time for finished products to secure company's delivery accuracy. Therefore, in a decision situation for change affected cost items should be assessed in contrast to the more indirect value of a lead time reduction. Limitations – Modifications of materials supply occurs in a context where conditions outside the unit of analysis plays a crucial role and thereby limits the possible usage of the potential lead time reduction. The study handles impact of cost items in a general direction (increase or decrease). Absolute terms contribute to more precise consequences and are probably necessary to support a company's final financial decision of using an alternative approach in materials supply.

Outsourcing has become a well known and commonly used strategy for Swedish companies, which involves buying a part or process from a subcontractor rather than performing it within the company. Common reasons why companies chose to outsource rather than to perform the activities themselves are cost- and competition related. Previous low labour- and facility costs in countries such as China and Estonia have been forces that have kept the outsourcing trend strong. In recent years you can see more Swedish companies bringing back previously subcontracted functions into the company, so called insourcing. This can partially be explained by changes in external market factors such as raising salaries in low-cost countries and increased automation.

Titel: Competitive advantage through strategic sourcing: A SME perspective. SME: The size of an enterprise can be measured by its employment, sales, or profit (Tam etal, 2007). Small and medium sized enterprises range between 10 and 250 employees. FiveSwedish SMEs was used for the multi case study. Background: The competitive market situation has created a shift in companies’ strategythinking. Strategies focus increasingly on core activities and business development. Oneeffect of this is that companies choose to outsource activities they don´t consider to be corebusiness (Van Weele, 2010; Thrulogachantar and Zailani, 2011). Purpose: The purpose was to investigate strategic sourcing plans that SMEs can apply toincrease their competitive advantage. Methodology: The research was conducted through a qualitative study with a deductiveapproach. A multi-case study was made on five SMEs in Kronobergslän, Sweden, with twosemi-structured interviews at each company. Result and conclusion: The investigation resulted in a current view of SMEs sourcing andsuitable recommendations for SMEs to direct their purchasing activities to strategic sourcing.The process of implementing a strategic plan for SMEs can be seen as relatively difficult butthere are purchasing activities that can be improved by a strategic thinking. To keep in mind isthat supplier’s performance matter, but it is the resources of suppliers that are the maincompetitive advantage and it is in this area where supplier development and sourcingstrategies should focus. Further research: However further research could investigate strategic sourcing in adifferent approach, both from a supplier and customer perspective

In this study we explored the relationship between absorptive capacity, knowledge sourcing strategy, alliance forms, and firm performance. Based on the literature and case study, we proposed the concept of knowledge sourcing strategy in alliance contexts, which can be categorized into two types¡Xknowledge internalization strategy and knowledge access strategy. From organizational learning perspective, we argue that a firm¡¦s absorptive capacity has a positive influence on knowledge internalization strategy, and accordingly a firm¡¦s governance choices of alliances are also influenced. Firm¡¦s R&D performance are also included in theoretical model in order to generate further managerial implications. Instead of using conventional regression method, we adopt Structural Equation Modeling (SEM) to conduct path-analysis, in that SEM is well suited to verifying causal models. We argue that firms should seek a better alignment between absorptive capacity, knowledge sourcing strategy, alliance forms, and firm performance. Our arguments are supported by empirical analysis of a sample of 148 R&D alliances involving computer, telecommunication, LCD/LED, semiconductor, and electronic machinery industry.

Research on outsourcing has been around for several decades, while recent evolution in the information systems discipline towards ICT service commoditization significantly changes the context of decision-making. Services that are available on-demand via the Internet allow organizations implementing functions they demand in a fraction of time. This trend represents a chance for organizations seeking to use advanced ICT services without a need of major investments. Problem is the current lack of guidelines and tools for managing ICT services and their outsourcing. Given the trends on the ICT service market, it is expected that much of the IT management in the future will encompass the ICT services and utilize service-level structures. Methods currently available are either too broad or encompass only small part of the whole problem. Ad-hoc or unsound decisions in this area might cause major complications in terms of quality, usability, integration, and consequently influence total cost of organizational IT. Organizations need to either revise existing models or propose and implement completely new models to manage their IS/ICT. This thesis deals with the management of IS/ICT with focus on the ICT services outsourcing. It discusses available sourcing models in the literature and links them to the various interconnected areas. Based on these areas, it presents an integrated view on IT outsourcing strategies. Most importantly the thesis proposes an original concept for decision-making about outsourcing of ICT services named the SOURCER framework. This approach utilizes the presented outsourcing strategies, and introduces a complex methodology and decision-making criteria that will assist organizations with selection of ICT services in order to maintain and manage a most suitable ICT service portfolio. The decision-making is based on four essential viewpoints: function, costs, time, and quality. These viewpoints are discussed, individually analyzed, and serve as a basis for further research. The whole framework is developed and validated according to Design Science Research Methodology (DSRM). Individual components are evaluated using a survey among a group of selected IT managers. Proof of concept is then established by a case study on framework use in a real organization. This case study covers strategy specification, business--IT alignment, specifying service architecture and its interconnections, outsourcing, and management of the ICT service portfolio.

abstract: The dissertation aims to provide a new perspective on the management of multi-tier supply chains. When a firm decides to buy a product from a supplier, the buying firm also needs to decide whether to use the supplier to make the lower-tier sourcing decisions or to make those decisions in-house. I call the former "supply chain-buy" and the latter "supply chain-make." If the choice is supply chain-buy, the buying firm releases sourcing control of its bill of materials (BOM) to the top-tier supplier and this supplier, then engages with the supply base to determine the BOM's supply chain. If the choice is supply chain-make, the buying firm maintains sourcing control of the BOM and engages with its own supply base to select the lower-tier suppliers. The dissertation provides a theoretical foundation and empirical observations for understanding the supply chain make-buy decisions. The dissertation consists of three main chapters: Chapter 2 extends the make-or-buy literature into the multi-tier supply management context to provide theoretical reasons for engaging in supply chain-make as opposed to supply chain-buy. Building on transaction cost economics, the knowledge-based view, and structural hole theory, Chapter 2 explains the phenomenon that cannot be fully explained by a single-theoretic perspective. Chapter 3 empirically investigates the economic and behavioral factors that influence individual purchasing managers' supply chain make-buy decision-making. Specifically, the roles of behavioral uncertainty, interpersonal trust, and familiarity are considered. A scenario-based behavioral experiment involving the members of the Institute for Supply Management is employed. Lastly, Chapter 4 studies the performance implications of particular supply network structures influenced by supply chain make-buy decisions. Supply chain make-buy decisions can affect the prevalence of structural holes in supply networks. Chapter 4 investigates the different types of structural holes in supply networks. It provides a novel way of understanding structural holes in the supply network context by distinguishing structural holes between the focal firm's suppliers (horizontal structural holes) from those between its customers and suppliers (vertical structural holes). Panel data on supply networks and firm financial indicators are used for analysis in Chapter 4. / Dissertation/Thesis / Doctoral Dissertation Business Administration 2017

<p>Tidigare forskning har påvisat att ett företags produktionsförmåga påverkar förmågan att utveckla nya produkter. Faktum är att de företag som är duktiga på att producera ofta även är duktiga på att utveckla nya produkter, då flertalet produktionsaktiviteter såsom prototypframställan är viktiga i utvecklingsprocessen. Detta, i kombination med att mer än 70 % av en produkts kostnad bestäms under utvecklingsfasen, innebär att det är av yttersta vikt att samspelet mellan utveckling och produktion hanteras effektivt.</p><p>En begräsning med tidigare forskning är antingen att den tenderar att endast titta på interaktion under utvecklingsfasen eller på hur företag kan förbättra produktionsförmågan. Därför är avhandlingens syfte att vidga analysen av interaktion mellan utveckling och produktion genom att studera interaktion under såväl utvecklings- som produktionsfasen. Detta görs genom att studera hur interaktionen påverkas av viktiga kontextuella faktorer såsom organisatoriskt och geografiskt avstånd samt uppgiftens karakteristika. För att uppnå syftet studerades flertalet företag genom intervjuer, vilket utmynnade i fyra papper samt en kappa som sammanfattar och drar slutsatser utifrån dessa papper. De två första papperen fokuserar på interaktion under produktionsfasen, medan de två sista papperen behandlar interaktion under produktutvecklingsfasen.</p><p>Syftet med Papper 1 är att klargöra möjligheter och begränsningar med olika ansatser för produktionsförbättringar. Totalt studerades sju företag: två som saknade ett systematiskt förbättringsarbete och fem som jobbade systematiskt. Resultaten visar på tydliga skillnader mellan olika ansatser. De företag som lyckats bäst är de som har ett systematiskt arbetssätt, men även bland dessa företag finns det vissa skillnader. Företag där framförallt produktionstekniker är ansvariga för förbättringsarbetet har förvisso lyckats att implementera förändringar, men avsaknaden av förankring hos operatörerna har inneburit visst motstånd. Framförallt kan detta vara en nackdel i föränderliga miljöer där operatörerna kan ge stora bidrag med sin spetskompetens. Generellt sett tycktes det vara svårt att involvera operatörerna. Bredare ansatser där såväl produktionstekniker som operatörer bedrev förändringsarbetet var således svårare att införa men de som hade lyckats fick god utväxling. En faktor som tycks vara viktig för att införa en sådan bred ansats var att ledningen stödjer arbetet.</p><p>Papper 2 fokuserar på tre av de sju fallföretagen från Papper 1 för att se hur produktionsförbättringarna kan användas för att förändra och förbättra produkten. Mer specifikt syftar detta papper till att undersöka hur interaktion under produktionsfasen påverkas av samverkan mellan förbättringsansats och geografiskt avstånd mellan utveckling och produktion. Resultaten visar att systematiska förbättringsansatser ger fler möjligheter till produktförbättringar än vad osystematiska ansatser gör. Tillvaratagandet av dessa möjligheter påverkas negativt av ett längre geografiskt avstånd mellan avdelningarna, då det ofta är nödvändigt för konstruktörer och produktionspersonal att diskutera ansikte mot ansikte för att utröna vilka möjligheter som finns och hur de kan förverkligas. Det kan således konstateras att kombinationen systematisk ansats och närhet skapar de mest gynnsamma förutsättningarna för att produktionsförbättringar skall leda till produktförbättringar.</p><p>Istället för att studera interaktion under produktionsfasen vänder Papper 3 på myntet och studerar interaktion under utvecklingsfasen. Syftet med papperet är att undersöka hur interaktion under utvecklingsfasen påverkas av det geografiska och organisatoriska avståndet mellan utveckling och produktion. Totalt studerades två företag, ett företag utan egen produktion och ett med. Resultaten visar på att utvecklingsavdelningen behöver besitta relativt avancerad produktionskompetens för att kunna utveckla nya produkter effektivt. Utvecklarna behöver med andra ord jobba målmedvetet för att bibehålla och utveckla denna kompetens, vilket underlättas om de två avdelningarna är placerade i närheten av varandra. En nackdel med närhet tycks dock vara att interaktion domineras av informationsutbyte ansikte-mot-ansikte trots att mer kostnadseffektiva media såsom e-post ibland kan nyttjas.</p><p>Syftet med Papper 4 är att bredda den föregående studien genom att studera en större mångfald av företag och produktutveckling (dvs. produktutveckling baserat på föränderlig såväl som mer mogen teknologi). Mer specifikt är syftet att se hur interaktion mellan utveckling och produktion påverkas av samverkan mellan geografiskt/organisatoriskt avstånd och uppgiftens karakteristika. Totalt studerades sju företag där fyra av dem baserar sina produkter på mogen teknologi (tre med egen produktion och två utan) och två företag utvecklar högteknologiska produkter (ett med egen produktion och ett utan). Resultaten visar att olika kombinationer av avstånd och uppgift skapar olika utmaningar som måste hanteras med hjälp av olika interaktionslösningar:</p><p>(1) i en turbulent miljö utan egen produktion är utmaningen att säkerställa att utvecklarna har tillgång till relevant produktionskompetens.</p><p>(2) i en stabil(are) miljö utan egen produktion kan utvecklarna enklare förstå produktionsprocessen. Utmaningen ligger snarare i att få feedback från leverantörerna så att produkten kan tillverkas till lägre kostnad.</p><p>(3) i en turbulent miljö med egen produktion har utvecklarna hög kompetens. Utmaningen är att utnyttja spetskompetensen inom produktionsenheten.</p><p>(4) i en stabil(are) miljö med egen produktion är utmaningen att formalisera interaktionen till en högre grad. Det tycktes som att dessa företag nyttjar ansikte-mot-ansikte interaktion fastän billigare media såsom e-post kunde nyttjats.</p><p>De fyra papperen studerar således såväl utvecklings- som produktionsfasen. Genom att vidga analysen av interaktion och studera båda faserna visas på vikten av att styra och hantera interaktion under båda faserna. Det konstateras att effektiv styrning av interaktion under utvecklingsfasen leder till effektivare produktion medan den under produktionsfasen ger möjligheter till produktförbättringar. Således bör vi inte se projektavslut som slutet för interaktion mellan utveckling och produktion. Det är troligtvis inte ens början på slutet utan möjligen slutet på början.</p> / <p>Previous research has highlighted the fact that at least 70% of a product’s cost is committed during the design stage of new product development projects. Thus, how firms manage interaction between design and manufacturing really matters. Although many studies have demonstrated that manufacturing capabilities affect product development performance, there is little research investigating how firms can improve manufacturing and use these improvements to modify and improve product designs. Thus, the purpose of this thesis is to extend the analysis of design-manufacturing interaction by studying interaction during both the new product development and manufacturing phases, taking into account important contextual variables such as geographical and organizational distance, and task characteristics.</p><p>To fulfil this purpose, two questions are posed that relate to the manufacturing phase, and two that relate to the new product development phase:</p><p>1. What are the implications of different continuous improvement approaches for manufacturing performance?</p><p>2. How do these approaches affect design-manufacturing interaction during the manufacturing phase, when various levels of geographical distance are taken into account?</p><p>3. How is design-manufacturing interaction during new product development influenced by different sourcing strategies?</p><p>4. How is design-manufacturing interaction during new product development influenced by different sourcing strategies, when the task characteristics of the product are also taken into account?</p><p>By studying multiple cases and conducting semi-structured interviews, this thesis makes two distinct contributions. First, the findings illustrate that successful interaction during the manufacturing phase is influenced both by the selected approach to manufacturing development, and the geographical distance between design and production departments. While the approach affects the number of improvements, the distance affects the nature of the interaction. In essence, a combination of systematic approach and proximity between design and manufacturing seems to be the most effective combination.</p><p>Second, the findings illustrate that different combinations of sourcing strategy and task characteristics result in different challenges, which require different kinds of interaction. When reviewing how firms manage these challenges the findings both support and challenge the contingency theory. On the one hand, the paper supports the theory in terms of promoting organic procedures in unstable environments and mechanistic procedures in stable environments. On the other hand, it challenges contingency theory advocates for downplaying firms’ ability to shape their future. In fact, this research has shown that companies generally have many different feasible options. The implication is that it may be more important for managers to be aware of how to manage the pros and cons of these options than to choose a particular organizational structure.</p><p>By taking an extended view on analysis of interaction, the thesis demonstrates that interaction matters during both the new product development and manufacturing phases. Thus, while effective management of interaction during the new product development phase could lead to improved manufacturability, interaction during the manufacturing phase could lead to improved product designs.</p> / Report code: LiU-Tek-Lic 2006:72.