Outsourcing into service factories

Abstract

Strategic outsourcing and supply chain integration issues have gained considerable attention in recent years. Concentration on core competencies usually addresses examples along one supply chain. However, a different phenomenon appears in the strategic “dis‐integration” of companies. As explored in five cases taken from the German chemical industry, a separation of two kinds of companies can be observed. Product manufacturers concentrate their business on specific products and technologies, while facility operators, which can also be conceived as service factories, are formed to operate the infrastructure of a production site. This will be described and analysed on building outsourcing and service management thought. A model will be derived describing how the formation of facility operators takes place. The services offered are analysed to yield insights into the business of facility operators. The link between product manufacturers and facility operators offers challenges for future research in supply chain management.

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