The management of outsourced manufacturing in the production of flexible packaging products of superior multi-packaging limited

Abstract

As company continues to capture larger market share, in-house capacity expansion is necessary to meet the demand. Production capacity expansion involves new equipment acquisition, floor space expansion, new hiring and so on in which huge capital investment is inevitable. However, due to the rapid technological change and fluctuating demand, investment in terms of machinery and resources induced great amount of business risk as it restricts flexibility and responsiveness to changes. Therefore, an alternative to encounter this dilemma in increasing capacity would be to allow involvement of third party manufacturer through outsourcing. Despite having minimum investment to release in-house capacity, outsourcing provides sufficient flexibility towards the change. However, outsourcing poses some risk level that will bring negative impact to the company's growth if it is not managed properly. This thesis was done in Super Multi-Packaging Limited (SMPL), Study had been carried out to establish methods and frameworks to initiate and managing outsourcing processes in flexible packaging products.