Modular Sourcing: Why and How Case Study: Prioritizing Samand Body Modules for Outsourcing

In this paper the importance of strategic approach to modular sourcing is described. Also a process for modular sourcing decision in manufacturing industry is proposed. The proosed decision process includes determination of strategic directions, selection of modules, evaluation and prioritization of them. With a focus on the importance of evaluation criteria, this paper proposes the following factors as the comprehensive strategic sourcing decision criteria for manufacturing industry: customer importance, technology clockspeed, competitive position, supply basecapability, and architectural relationship. Also, economic value added as the most important financial factor is presented. At the end, the proposed process ia applied for outsourcing decision of 28 automobil body modules.