Decision Analysis On Outsourcing Solution In Supply Chain Environment

With the entering to the 21st century, global economy has been seeing an integrative trend. Supply chain management, which is developing unprecedentedly with a significant innovation, presents itself as an integrative mode of cooperation and competence. The predominance of scale-economy is playing a more and more important role in the enterprising management. On account of the dramatic changes of value chain brought by industry subdivision, enterprises are focusing on the OEM (Original Equipment Manufacture) by outsourcing their inefficient or high cost business instead of covering the whole manufacture operation from the very beginning to the end, which they did before. Along with the integration of the global economy, a good number of the world famous corporations are moving their manufacturing business to China mainland. And one manifest phenomenon, during this period, is outsourcing."Outsourcing"means enterprises outsource their incompetence business to those who operate it better with low cost.In the intense market competition, companies have their own market positioning on core technology and products. Enterprises'development counts on the success of core competence. Outsourcing non-core but important business units to those specialized suppliers is the effective approach to free up themselves to fixate on the construction and development of their core competence business.Putting the analysis of outsourcing in the supply chain environment, this thesis demonstrates the supply chain management firstly, and secondly, from the angle of supply chain management, which includes the goal of the strategy, the realization of the strategy and the measurement of performance, it expatiates the advantages and disadvantages of the outsourcing and in-sourcing, with the core competence and value chain theory, and the outsourcing development is the inevitable result of the development of supply chain, on the basis of characteristics of the electronic manufacture. Thirdly, it demonstrates the indispensability of the outsourcing, with the case of lucent. Finally, it illustrates the importance of outsourcing in the supply chain management by outsourcing decision analysis, outsourcing realization and achievement comparison with cases and figures.