Title: ANALYSIS OF OUTSOURCING STRATEGY USE
Authors: Idris
Item Type: Thesis
Affiliations: Master of Management Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
In order to achieve efficiency that is believed to prevent bankruptcy, many methods and concepts have been developed. One of them is outsourcing. However, besides promising a number of strategic benefits, it also brings the consequence of the emergence of strategic risks. PT Djarum Kudus as one of the largest cigarette companies in Indonesia is required to carry out efficiency in order to be able to compete in a global competitive climate. The outsourcing strategy carried out is the maintenance of machines and facilities at PT Djarum Kudus. This research uses a qualitative approach with a case study research design at PT. Djarum Kudus. The thought process starts from value chain analysis, identification of internal and external activities, to the stage of the outsourcing decision-making process. In carrying out the decision-making process, there are three models that can be used sequentially, namely: (1) Strategic Vulnerability and Relationship Control Consideration Model, (2) Make or Buy Cost Analysis, and (3) Strategic Sourcing Model. The research results show that by considering the factors in the model, PT Djarum Kudus has the potential to establish an outsourcing collaboration with PT Boma Bisma Indra (PT BBI) on the maintenance activities of machines in facilities with the following decisions: (1) Outsourcing strategy of machine maintenance activities in facilities at PT Djarum Kudus is carried out with PT Boma Bisma Indra as the service provider; (2) The type of outsourcing carried out is full outsourcing (buy) on machine maintenance activities in facilities; (3) The work contract agreement with the service provider is carried out within the framework of a long-term contract, by creating a certain supervisory mechanism that can balance the level of flexibility and the level of supervision required; (4) The optimal contract period is 4 years, after which a re-evaluation can be carried out
Keywords: Outsourcing
Sources: http://repository.unair.ac.id/34819/