Outsourcing Vs. Insourcing in the Automotive Industry. The Role and Concepts of Suppliers PDF Download

Author: Christian Nitschke
Publisher: GRIN Verlag
ISBN: 364086509X
Category : Business & Economics
Languages : en
Pages : 133

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Book Description
Master's Thesis from the year 2005 in the subject Engineering - Industrial Engineering and Management, grade: 2,0, Stellenbosch Universitiy, course: Operations Management, 78 entries in the bibliography, language: English, abstract: The research report takes an in-depth look at the automotive industry and their major participants in the upstream value chain. The different parties involved are the automotive manufacturers (OEMs) and their suppliers. The overall goal of the following report is to identify suitable business models for small to medium sized (SME) automotive suppliers. As the automotive value chain currently undergoes an evolutionary change towards a diminishing vertical integration of the OEMs, it becomes a challenging issue to reconfigure the responsibilities of the suppliers. Thereby OEMs and their suppliers have to cope with a shift from a functional to a process orientated value chain. During this reorganization of the OEM-supplier interface, enterprises realign their strategic intent towards their core competencies as well. Besides the shifting value chain, both suppliers and OEMs have to cope with a consolidation in their industries. This consolidation is impacted by stagnating traditional markets, an ongoing globalization of the value chain, and an increasing productivity pressure in the automotive industry. Looking at the automotive supplier, it becomes obvious that the suppliers are on the one hand challenged by productivity pressures and on the other hand have the opportunity to take over more business of the automotive value chain. The growth potential requires changes in the area of supply chain management and new types of collaboration in the supply network. This prospective development is mainly influenced by a trend towards the outsourcing of entire processes by the OEMs and the increasing need for future innovations in the automotive industry. After discussing the above mentioned issues, the report analyses the role of suppliers with res

Author: Johnny Ch Lok
Publisher: Independently Published
ISBN: 9781799109174
Category : Business & Economics
Languages : en
Pages : 46

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Book Description
What is global outsourcing source strategy in a departmental role? In a highly competitive global environment, many manufacturers are responded by setting and outsourcing relations for components and finished products with lower cost producers on a contractual electronic commerce department, ( original equipment manufacturer basis). Outsourcing strategy is part of the value supply chain of corporate activated. Nowadays, global outsourcing increases organizational and technological capacity of firms and cooperating a network of remotely located external suppliers performing. These understanding the important roles that product designers, engineers and production managers and purchasing manager etc. play in global sourcing strategy empowerment. Specially, electronic commerce is popular to supply chain. For example, Toyota car manufacturing company, owns unique capabilities by designing and manufacturing certain car components in-house, i.e. insourcing. Toyota also outsource manufacturing activities, Toyota adopts purchasing necessary, but no strategic inputs from independent component suppliers on obtaining a lower cost for these inputs. For example, products would be belts, tires and batteries to vehicle products that are not customized and do not differentiate its products from its competitors. Toyota's outsourcing strategy is car strategic inputs provide differentiation, e.g. engine, transmission etc. are sources from suppliers based on strategic partnership to gain to access to suppliers' capabilities and it is also a conceptualize global outsourcing sourcing strategy to Toyota car manufacturing company. How value chain outsourcing affects firm level performance. Global outsourcing strategy means to identify which production units that will serve which particular markets and how components will be supplied for production and thus included a number of basic choices, companies can make in decision how to serve various markets. Either choice relates to the use of inputs, assembly or production within the country to serve a foreign market or decides to use of internal or external supplies of components or finished products. In this outsourcing source input situation, the term sourcing is needed to describe how multi-national companies mange in of components and finished products in serving foreign and domestic markets. Sourcing decision making is both contractual point of view, the sourcing of major components and products are occurred by multi-national companies. First is from parents or their foreign subsidiaries. Second is from independent suppliers on a contractual basis. The first type of sourcing is known as insourcing. Otherwise, the second type of sourcing is referred to outsourcing. How to achieve economies of scale by outsourcing or insourcing sourcing input strategy?

Author: Martin Lempp
Publisher: Springer Nature
ISBN: 3030900363
Category : Business & Economics
Languages : en
Pages : 170

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Book Description
This book provides an integrated perspective of the automotive market for the next decade. It shows how customers and producers are shaping the market simultaneously and contends that the first steps of the mobility revolution have already been taken. It compels automotive companies to strike new paths to participate in this journey. The authors provide a comprehensive analysis of the automotive industry, including prevailing business models of OEMs and 'tier-n' automotive suppliers, the competitive environment they are embedded in as well as socio-economic changes affecting future market conditions. Subsequently, elements of the automotive disruption are presented; these enable the provision of novel urban mobility concepts and offer a new source for additional services accompanying the user. A comprehensive insight into consumer behavior, potential automotive business models which can be sustained by 2030, smart city models, transformation strategies, and diverse market penetration scenarios are also provided in the book. It also outlines the challenges and key actions that shape the automotive sector even beyond 2030 as well as knock-on effects across different industries arising from the technological and economic changes in the automotive market are projected.

Author: Per V. Jenster
Publisher: John Wiley & Sons
ISBN: 0470014806
Category : Business & Economics
Languages : en
Pages : 202

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Book Description
Outsourcing became fashionable in the late 1980s, came of age in the 1990s, and is now a normal part of corporate life. Written by well-known and respected business authors and incorporating new research from Copenhagen Business School, this book covers the newest elements of outsourcing today and discusses how strategic alliances should be established between the buyer and supplier. Topics explored throughout include the scope, scale and importance of what is outsourced; the pricing and risk sharing involved; and changes to organizations which lead them to seek more outsourcing.

Author: Gagan Syal
Publisher: KIT Scientific Publishing
ISBN: 3731500906
Category : Computers
Languages : en
Pages : 235

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Book Description
CAE ProNet methodology is to develop CAE network considering interdependencies among digital validations. Utilizing CAE network and considering industrial requirements, an algorithm is applied to execute a product, vehicle development phase, and load case priority oriented CAE process. Major advantage of this research work is to improve quality of simulation results, reducing time-to-market and decreasing dependencies on hardware prototype.

Author: Christian Nitschke
Publisher: GRIN Verlag
ISBN: 3638392732
Category : Technology & Engineering
Languages : en
Pages : 127

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Book Description
Master's Thesis from the year 2005 in the subject Engineering - Industrial Engineering and Management, grade: 2,0, Stellenbosch Universitiy, course: Operations Management, language: English, abstract: The research report takes an in-depth look at the automotive industry and their major participants in the upstream value chain. The different parties involved are the automotive manufacturers (OEMs) and their suppliers. The overall goal of the following report is to identify suitable business models for small to medium sized (SME) automotive suppliers. As the automotive value chain currently undergoes an evolutionary change towards a diminishing vertical integration of the OEMs, it becomes a challenging issue to reconfigure the responsibilities of the suppliers. Thereby OEMs and their suppliers have to cope with a shift from a functional to a process orientated value chain. During this reorganization of the OEM-supplier interface, enterprises realign their strategic intent towards their core competencies as well. Besides the shifting value chain, both suppliers and OEMs have to cope with a consolidation in their industries. This consolidation is impacted by stagnating traditional markets, an ongoing globalization of the value chain, and an increasing productivity pressure in the automotive industry. Looking at the automotive supplier, it becomes obvious that the suppliers are on the one hand challenged by productivity pressures and on the other hand have the opportunity to take over more business of the automotive value chain. The growth potential requires changes in the area of supply chain management and new types of collaboration in the supply network. This prospective development is mainly influenced by a trend towards the outsourcing of entire processes by the OEMs and the increasing need for future innovations in the automotive industry. After discussing the above mentioned issues, the report analyses the role of suppliers with respect to their main customers, the automotive OEMs. Based on the findings business models for suppliers are assessed and key success factors for small to medium sized suppliers are proposed and evaluated. The findings of the evaluation are translated into suggestions for most suitable business models of SMEs. The report concludes with recommendations for the strategy building process indicates problems concerning the shifting value chain, and points out the importance of further research in the field of the small to medium sized automotive supplier industry. [...]

Author: Andreas Weth
Publisher: GRIN Verlag
ISBN: 3638922707
Category : Business & Economics
Languages : en
Pages : 85

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Book Description
Diploma Thesis from the year 2006 in the subject Business economics - Supply, Production, Logistics, grade: 1.7, UNITEC New Zealand (Supply Management Institute (SMI)), course: Diplom, 105 entries in the bibliography, language: English, abstract: Problem Definition and Scope of the Diploma Thesis The problem which is addressed in this diploma thesis is the research deficit in the field of benchmarking supply and sourcing strategies. As it was stated in the introduction, no academic publication could be identified in which supply or sourcing strategies in the automotive industry are benchmarked with another industry and detailed recommendations for a particular industry are derived. This lack of academic research is related to a general research deficit in the whole field of supply management which was already identified by Wildemann (2000), Van Weele (2002) and Jahns (2005). The whole field of supply management cannot be entirely benchmarked within two industries in a diploma thesis. Because of that and to reduce complexity, the sourcing strategy triangle which is further explained in section 2.4 and shown in the following figure 2 was developed as a benchmarking framework. 1.3 Structure of the Diploma Thesis Firstly, chapter one provides an introduction including the problem definition (section 1.1), background information about the Hilti Corporation (section 1.2) and the structure of the diploma thesis (section 1.3). This is followed by supply management definitions and classifications which are given in chapter two of the thesis; supply management terminologies are defined (section 2.1), a supply strategy is explained in its strategic environment (section 2.2) and different supply management concepts are explained and analyzed (section 2.3). Besides that, also the sourcing strategy triangle which is used for the benchmarking approach is introduced in section 2.4. After that, chapter three includes the benchmarking analysis of the sourcing strategy triangle. In

Author: David Bowles
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
Aims and Objectives of Research. 1. To develop a 'one stop' generic decision making matrix (Outsourcing Decision Model) that provides the necessary clarity into defining whether an organisation should proceed with an outsourcing initiative or not. This would be based upon a distillation of existing models and reviewed literature. With the recognition that there may be subsequent advantages following the process, the model will include not only these but a means of evaluation in order to ascertain whether or not an outsourcing initiative may be or was successful or not. This latter aspect must logically be viewed as veryimportant as an outsourcer must be aware of the benefits and also whether or not they were achieved. In addition, the model would include sufficient guidance with potential supporting metrics and their application. 2. To validate the Outsourcing Model through specific case studies using a triangulated approach in comparing the selected automotive OEM with some of its major competitors. Within the context of the case study, the research would also attempt to understand how the subject outsourcing organisation compares to its major competitors in equivalent comparable products and whether or not this reflects in the success of these companies. This case study not only provides a means of reinforcing the remaining case studies by using a triangulated method of application to the research developed outsourcing decision model but also provides a deeper understanding of the context of the supplier and competitors within the industry. 3. To test, via case studies the effect of specificity relating to the outsourced end product rather than the outsourced entity. This aspect provides the deepest application to the researched outsourcing decision model and therefore the most comprehensive validation. In addition, because the case studies are retrospective, they have the benefit of providing data to establish the level of success. This would be very important, particularly as it would enable a focus on particular criteria that failed to highlight a particular outcome and therefore provide a chance to make amendments. Low specificity is a well established criterion in defining an outsourced entitywhich is reflected within the body of the research. The further extension of this theory towards the outsourcing of and outsourced entity related to an established previously outsourced commodity is a new concept with no identifiable literature or evidence relating to its importance. The fact that it provides an element within the research that is potentially unique and carries no extra task burden it has been captured as an added element within the two important validation case studies:4. To evaluate if outsourcing performance can be enhanced through the introduction of a second supplier into a single supplier sourcing situation. Subsequent to outsourcing, this aim and objective focuses upon the possibility of enhancing performance through the introduction of a second supplier. Particularly in cases whereby expertise may have been lost from an outsourcer, ultimate results relating to the outsourced entity may be compromised through either opportunism or diminished supplier performance. Whether these aspects are deliberate or unintended, an outsourcer should have some means of mitigating this risk. This mitigation may potentially be enabled through the use of a second supplier in order to provide a degree of competition. 5. To identify a link between Specificity, Commonality and Platform Sharing. The Author's professional role was very heavily based around the modern practices within the Automotive Industry. Outsourcing, platform sharing and commonality are well publicised strategies that have been adopted by various car manufacturers in order to gain efficiencies. Researchwas carried out in order to provide a better understanding of these strategies and to establish if there is any link between them. A confirmation of any linkages may then provide potential for establishing greater synergies between them.

Author: Smita Brunnermeier
Publisher: DIANE Publishing
ISBN: 0788184091
Category : Automobile industry and trade
Languages : en
Pages : 98

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Book Description
NIST's Manufacturing Engineering Laboratory (MEL) is developing standards that promote interoperability among members of the U.S. automotive supply chain. This study assesses the costs of imperfect interoperability to the U.S. automotive supply chain and describes the sources of these costs. This study estimates that imperfect interoperability imposes at least $1 billion per year on the members of the U.S. automotive supply chain. By far, the greatest component of these costs is the resources devoted to repairing or reentering data files that are not usable for downstream applications.

Author: Boris Kuster
Publisher: GRIN Verlag
ISBN: 3638298582
Category : Business & Economics
Languages : en
Pages : 102

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Book Description
Bachelor Thesis from the year 2004 in the subject Business economics - Supply, Production, Logistics, grade: 80% England, 1,3 (A), University of Greenwich (School of Engineering), language: English, abstract: Is Outsourcing manufacturing as the strategic solution to strengthen future competitiveness or just a modern trend? The aim of the project is to answer this and closely related questions with either economic or business content. The analysis begins with first generating an awareness of the nowadays employed outsourcing business and variances and the steadily surrounding decision making process. The advantages and disadvantages of outsourcing, outsourcing specifically manufacturing and the different sourcing strategies are shown and lead to further questions like the importance of virtual companies or the economic impact of outsourcing. As the outsourcing decision and amount is not universal but determined by very specific criteria a combined implementation way was chosen to finally reach the projects aims. Three industry case studies (automotive, electronics manufacturing and pharmaceutical production) were conducted to show contribution to the often unique processes and understand details influencing the decision. Furthermore an E-Mail survey was conducted assessing production managers’ (again of various industries) opinions about outsourcing manufacturing and researching their companies’ outsourcing degrees. Charts were extensively used to visualize the calculated data and the combination of both case studies and questionnaire finally led to the combined and entire evaluation of nowadays outsourcing business and its related swings and roundabouts. In this way the project could be brought to completion The self critical future work an problem sections mention further approached and solution possibilities for future project in the same field.