The role of specialized outsourcing companies in reduction of costs of production firms - Case study 'Binni' and 'Albed'

The success of any subcontracted activity depends on the choice of third party -- the appropriate subcontracting specialized company and its relationship with the business itself. This choice is the hardest challenge for firms that decide to outsource -- we will try to look at the prospect of applying and applying it to manufacturing firms.

The study examines the relationship of specialized subcontracting companies with manufacturing firms and their impact on cost reduction. The study is based primarily on first-hand information collected by managers of outsourced specialized subcontracting firms and firm administrators who transfer or perform activities through outsourcing outsourcing to perform tasks that earlier were realized by the firm itself.

Data is collected and based on theoretical considerations, a proposed model is proposed: Manufacturing firms (furniture manufacturing) -- Specialized subcontracting companies for transport with cost reduction, focus on core activity and flexibility while subcontracting quality goods services and timely delivery of products. Data analysis revealed that there is an important impact of the relationships of specialized manufacturing firm manufacturing firms to the firm's performance. Further, the direct and indirect effects of these relationships, the cost reduction, the flexibility and the focus on the main firm's brand activities have been revealed.

Research design is a case study approach and is based on two firms in the furniture manufacturing industry.