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Logistical efficiency in comparison when outsourcing from Asia versus outsourcing from Europe A case study on a shoe developing company

Alaa Alsheikha ; Andreas Serino Olander
Göteborg : Chalmers tekniska högskola, 2019. 75 s. Master thesis. E - Department of Technology Management and Economics, Chalmers University of Technology, Göteborg, Sweden; E2019:024, 2019.
[Examensarbete på grundnivå]

Icebug AB’s headquarter is located near Gothenburg in a town named Jonsered. The company has 26 employees and the net sales of 2018 were around 157,4 million SEK. Main areas of conducted business are designing, developing and selling outdoor shoes for extreme weather conditions. The purpose of this case study was to evaluate the difference in logistical efficiency based on outsourcing Icebug AB’s production of a specific product from an Estonian vendor versus outsourcing from a Vietnamese vendor. The current state (Vietnamese case) is based on data from 2018. The prospective state (Estonian case) is based on data from 2018 and feedback from the Estonian vendor. To be able to validate the data in this study, open-ended cross sectional interviews with multiple departments were conducted and multiple documents were overviewed. Furthermore, the processed data was reviewed, compared and followed up with informal interviews. Procedures such as checking transcripts for mistakes and comparing findings from multiple sources were implemented. The logistical efficiency was limited by variables such as total cost, tied up capital, customer service, delivery flexibility, environmental impact and time to market. The supply chain was delineated with the boat freight from the vendors to the main storage facility in Gothenburg. To examine the purpose, the current state (Vietnamese case) and prospective state (Estonian case) were compared. The difference in outsourcing the production of product a specific from Estonia versus outsourcing from Vietnam were: The total cost will decrease with 30%, the overall customer service will improve, the overall tied up capital will be minimized, the overall environmental impact will decrease, and the delivery flexibility will increase. This study concluded, on the basis of the empirical evidence and evaluated factors, that Icebug AB should change the outsourcing of the production of the specific product to Estonia.

Publikationen registrerades 2019-06-13. Den ändrades senast 2019-06-13

CPL ID: 256776

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