The perceived impact of supplier-manufacturer relationships and supplier management strategy (the lean approach) on outsourcing success

• Main Authors: Ahmad Nordin, Mohammed Ashril, Hassan, Mohamad Ghozali, Mohd Kassim, Abdul Wahid
• Format: Conference or Workshop Item
• Language: English
• Published: 2010
• Subjects: TS Manufactures
• Online Access: http://repo.uum.edu.my/4029/1/Mo.pdf; http://repo.uum.edu.my/4029/; http://cob.uum.edu.my/ictom/
• Institution: Universiti Utara Malaysia

This paper is a conceptual paper on outsourcing otherwise known as subcontracting is the strategic use of resources outside the company to perform tasks that are usually handled internally by the company itself. In today’s competitive world, successful outsourcing is a powerful tool for companies to generate value and gain competitive edge over rivals. Companies can focus on their core competencies and rely on their outsourcing partners for non-critical processes and operations. The formed strategic alliance can normally create synergy amongst companies that can lead to short and long term benefits. Some benefits are monetary and some are non-monetary. One factor of successful outsourcing is having a smooth supplier-manufacturer relationship.The positive impacts of outsourcing towards business performance & organization performance which both are representing monetary benefits had been studied extensively but evident in many academic literatures and texts, empirical findings particularly in countries like Malaysia are scarce especially outsourcing in non monetary benefits Kong (2005). This paper attempts to examine the effectiveness of successful outsourcing on the aspects of supplier-manufacturer relationship and in addition to recognizing the contribution of lean approach as a management strategy to substantiate outsourcing success.