A Study of Strategy on Outsourcing Basing on the Supply Chain ...

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?Abstract? The trend of world economy globalization and the increasing demand for customer?s individuation require enterprises more flexibility to match the changing market. Single enterprise grasping all the advanced knowledge and skills in all operational areas becomes unrealistic, In order to gain competitive advantage, some large companies are changing the traditional strategy, focus only on their core business, and outsource the other business to the competitive enterprises. Using of supply chain management, business outsourcing strategy has gradually become an important means to gain a competitive advantage in information era. Business outsourcing is also known as resource outsourcing, out association for resources or external resources. It is a management model that outsourced the non-core business (such as logistics business) traditionally in the charge of internal to professional, Efficient service providers (e.g. third-party logistics provider), uses of the most outstanding external professional resources so as to achieve lower costs, improve efficiency, give full play to its own core competitiveness and enhance the rapid response capabilities for the environment. The theories of strategy management, economy globalization and supply chain management forward the business of outsourcing.This paper researches enterprise outsourcing strategy under the environment of supply chain management. Drawing on the supply chain management, outsourcing, game theory, transaction cost economics and other related disciplines, to comprehensively use of the above disciplines to study enterprise outsourcing, the main points of the chapters are as follows :The first chapter, introduction. This chapter briefly introduces the meaning and origin, discusses the importance of outsourcing to enhance enterprises?core competitiveness and improve enterprise supply chain management, briefly overviews supply chain management, business outsourcing, transaction costs, the game theory and other relevant knowledge. In the end give the framework and method of this paper.Chapter II, supply chain management outsourcing analysis. Learning from other people?s results of research, I describe the theory of supply chain management and outsourcing in detail. First give a general description of supply chain management theory, and then outsourcing economic analysis, introduce the advantages of outsourcing and what should pay attention to, and explain outsourcing theory from the transaction costs, the core competitiveness of enterprises and supply chain management. Finally, discuss what should be outsourced, analysis the transaction costs of outsourcing by transaction cost economics, analysis the border of outsourcing and self-making by technical economic, and then give the general method of decision of outsourcing and self-making.Chapter III, the contractor choice. Review how to choose the best contractor. First introduce the principles and basic steps of choosing contractor, and then outline the methods of choosing contractor, statement the common methods and why to use AHP, Then highlight the AHP principles and steps, introduce how to chose the contractor and the steps of choosing contractor by AHP, and give the level of the contractor selection process.Chapter IV, the analysis of enterprise and the contractor?s game. Analyze the process of enterprise and the contractor?s game. Explain the outsourcing activities by the principal-agent theory of information economics; discuses how to incentive the contractor to work hard, introduce the information?s impact to the enterprise and its contractor, Dynamic multi-stage game and the oversight of outsourcing. Finally, from the point of the contractor, analyze the factors of the contractor joining the supply, and how outsourcing market competition and the contractor?s self-promotion to impact outsourcing operations.Chapter V, outsourcing case. Empirical analysis of the above theories into practice, Analyze Company A?s outsourcing decision-making. Chapter VI, Concluding remarks. The summary of the full text, introduce the framework and ideas, guide the future direction of the paper. Although this paper try to discuss outsourcing strategies under the supply chain environment in detail in order to guide enterprise outsourcing decisions, But there are still many shortcomings, first many models this paper used are based on reasonable assumptions, which is highly abstract, it could be a good guide for enterprise?s outsourcing in theory, but for all kinds of outsourcing, operational practice is not very strong; Second discuss only one contractor to complete outsourcing task alone, don?t introduce the joint outsourcing of enterprise with the contractor or contractors with other contractors; third don?t explain how the enterprise manage effectively and rationally the contractor and how to implement effectively supply chain management. These points are needed to be researched in-depth in future.All of above, if a enterprise wants to implement outsourcing strategy, it should make a proper outsourcing decision first, determine the correct outsourcing targets those just do supporting work and don?t threat to the enterprise?s development after the outsourcing. Then select suitable suppliers, in conjunction with actual supply chain management situation, choose the best contractor who can truly meet the interests of the supply chain. Finally take effective incentive measure and supervising system to ensure outsourcing successful and improve the whole supply chain competing ability.In the course of vendors to implement effective management, monitoring and performance evaluation, and to establish an effective incentive mechanism, Outsourcing can guarantee the success of enterprises so as to enhance the competitiveness of the entire supply chain and competitive purposes.

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Title: A Study of Strategy on Outsourcing Basing on the Supply Chain Management
Category: Management economics
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Pages: 191
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