Modular sourcing

Modular sourcing or modular procurement is a procurement strategy in materials management and deals with the purchase of finished modules or assemblies.

Industries such as the automobile industry, construction industry or the electronics processing industry often buy finished intermediate products (modules, subsystems) with a relatively large range of functions instead of individual parts.

advantages

The manufacturer can concentrate on his core competencies. The number of suppliers is reduced, as is the variety of types. The production stages are standardized through the modular system. The vertical range of manufacture is reduced. An effective procurement market reduction can be achieved through cooperation with Global Sourcing .

disadvantage

There are more demanding purchasing activities from a commercial and technical point of view. The skills required to manufacture the outsourced modules are lost. Conflicts between the standardization and individual customer requirements can arise. The dependency on the supplier increases as well as the associated risks (e.g. possible quality problems, non-compliance with delivery dates).

Web links

• Springer Gabler Verlag (editor), Gabler Wirtschaftslexikon, keyword: Modular Sourcing ( online )
• Modular sourcing on finanzen.net