Outsourcing of manufacturing: Learning from the automotive industry

Outsourcing has arguably become the latest management fad. Manufacturing outsourcing, in particular, is a strategic option that needs to be critically addressed, not only in the light of the structure and dynamics of the industry in which the firm competes, but also its positioning. This paper explores the manufacturer-supplier relationship at two of Skoda's facilities in the Czech Republic as well as Volkswagen's recently opened truck and bus plant in Resende, Brazil, with the belief that these experiences can be a source of learning and inspiration to companies across a broad manufacturing spectrum(1).