Subcontractors in a partnership environment:: A study on changing manufacturing strategy

Abstract This paper discusses the development of the subcontracting system by Finnish subcontractor manufacturers during the past 10 years. The findings show that there has been a clear shift towards long-term, commitment-based supplier–customer relationships among the manufacturers. It is argued that the ability to manage the inbound logistics and to cooperate with other companies appear to be more essential for the success of subcontractors than before. The paper also demonstrates the altered strategy of subcontractors' core business and presents the manufacturing strategy framework for subcontractors.