Manufacturing backsourcing: a case study of a company's process framework

Abstract

The purpose of this study is to examine the backsourcing process. Based on previous research and lessons learned from a case study of a supplier of maritime equipment in a Scandinavian cluster, important drivers, activities and challenges related to the backsourcing process are identified. The key contribution of this research is the development of a stepwise model of how companies can backsource. It is a framework describing how companies can conduct the backsourcing process, which consists of four phases comprised of different objectives and activities. Moreover, three main challenges are identified, namely limitations in capacity, rebuilding knowledge, and adapting the backsourced product to the production site. In addition to filling a gap in the existing literature, the framework can also be used as an analytic tool to help managers deal with the decisions and challenges related to the backsourcing process.