Research on enterprise outsourcing design under supply chain management model

Supply chain management(SCM) has been emphasized as a new management idea and model in recent years. Its management idea is to put enterprise major energy into core business, make full use of advantages, and outsourcing non\|core business to cooperative enterprises. Therefore, outsourcing design of enterprises comprises one of main aspects of SCM. The paper underpins this background, discusses the definition of outsourcing and component elements firstly. Based on Williamson's new institutional economic theory about governance structure in economic transaction, it categorizes governance hierarchy of enterprise outsourcing. In the end, the paper frameworks the outsourcing design model based on the combination of transaction cost and core competency under SCM model.