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Outsourcing Supply Chain Support and its Effectiveness and Implication in R&D Environment in Singapore - Dissertation Example

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Pages 56 (14056 words)


This paper aims to study the outsourcing challenges and issues, speicifically related to information sharing between partners that are faced by precision tool R&D organizations in Singapore. The research uses i3lab as the case for study and employs interviews of 5 employees at i3lab. …

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Outsourcing Supply Chain Support and its Effectiveness and Implication in R&D Environment in Singapore

This paper tells that in the past decades, there has been experienced an acute shortage of supply chain support services, especially for Research and Development (R&D operations), There are multiple reasons for these shortages and these include outsourcing to foreign countries like China and India where cost advantages can be obtained, inflationary pressures on the costs of operations. Indices like the manufacturing unit labour costs have shown an increase of 15% while unit business costs have increase by 7.8% over 2010. In addition, there is also a shift towards knowledge based economy as opposed to manufacturing and engineering, which has led to the government focusing on other sectors. There is a lowering of demand in the ultra-precision engineering segment in Singapore. A recent survey by the Ministry of Trade and Industries (MIT) has revealed that there is a decline of 5.9% in the manufacturing sector in the second quarter of 2011. The Precision Engineering sector comprising of precision modules and components has shown a 10% decrease in 2011 from the year 2007. The above factors have made it lucrative for organizations in the in the ultra-precision engineering R&D activities to follow the path of outsourcing. However, while outsourcing leads to cost cuttings, it may also lead to a loss of control over standardization and problems of product quality. There is therefore a need to share information with the outsourcing partners. The current dissertation is aimed at evaluating how the ultra-precision engineering R&D need to manage their sensitive information while sharing knowledge and practices with their outsourcing partners. ...
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