Logistics consequences of manufacturing outsourcing in China for Nordic enterprises

Abstract

With the replacement of traditional manufacturing by global manufacturing outsourcing and the centralization of manufacturing outsourcing to China, a lot of Nordic enterprises have moved their manufacturing activities through launching own local factories or purchasing final products from certified Chinese suppliers for the purpose of both cost reduction and easier entry into local market. But for the final target of achieving sustainable competitive advantage, what will the logistic consequences be for these Nordic companies during their outsourcing procedure in China? Our main purpose is to delineate the relevant logistics problems and how they affect the global supply chains of those Nordic organizations. Based on qualitative and quantitative observations from case studies in different industries, we try to make analysis on both the internal decisions inside Nordic organizations and the external environment in China. Then the thesis conducts a line of arguments concerning indications of whether a successful logistics strategy has been implemented by these Nordic companies. After integrating theories and experts’ experiences, our own ideas will be given to explain and improve the performance of logistics operations in the process of manufacturing outsourcing in the Chinese market.