Outsourcing on the production, a study of small and micro business in furniture sector

Abstract

The small and micro businesses (SMBs) in the custom-made furniture sector are organizations that have survived for decades using the same technology and internal production procedures with scarce operational and financial resources. Gradually, small woodworkers have sought alternatives to improve their furniture manufacturing processes using outsourcing as a form of evolution and survival. The objective of this work is to understand how the outsourcing process in the furniture production may represent, for the segment of the micro and small carpentry enterprises, a way to better meet the needs of its consumers and consequently, improve the results expected by the small business owner, as well as decrease their risks. In order to respond to the objectives of this work, a survey was carried out with 60 woodworkers in the city of São Paulo, through a descriptive and explanatory qualitative research. It was observed that there may be improvements in the management of companies that partially or fully perform the outsourcing process, with the main result being the focus on the most relevant activities of the company, moreover reducing costs, increasing productivity, reducing products delivery deadlines, among other benefits. The availability of time generated for the carpenter-owner by the process of outsourcing allows them to learn new technologies and product designs. For unfavorable points, there are resistance to change on the owners’ part, the miss choosing of the outsourcing company, the changes in the rules of commercialization when the supplier perceives dependence, and lack of rules in the relationship between the carpentry company and the outsourced.