Modular Sourcing is a procurement strategy in stock management and is concerned with the purchase of produced modules.

Branches of industry like the automobile industry, building industry or the electronics-processing industry often buy in place of individual parts finished intermediate products (modules, subsystems) with relatively large function range.

Advantages

• The manufacturer can concentrate on his core authority.
• Reduction of the number of the suppliers.
• Reduction that type variety by building block principle
• Standardisation of the production stages by building block principle
• Restriction of the manufacturing depth.

Disadvantages

• More fastidious purchase activities in commercial and technical view.
• Loss of authority
• Conflict between the standardisation and individual customer's requests

Articles in category "Modular Sourcing"

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Related Websites

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