As Samsonite expanded throughout the world, it continued to manufacture its own products and license production to other manufacturers. Then Samsonite entered into subcontract, arrangements in Asia and Eastern Europe. In Europe, the subcontractors provide final goods as well as the subassemblies used in Samsonite factories. The trend to outsource more and more of its production has been steadily increasing.
By 2007, Samsonite had shut down several of its plants in Europe and decreased internal manufacturing of soft-side luggage from 23 percent in 2004 to just under 10 percent in 2007 Although it still produces the majority of its hard-side luggage internally, the company now sources 90 percent of its soft-side luggage from third-party manufacturers to consolidate its manufacturing capacities and to achieve cost savings. Figure 18.6 illustrates S a m s o n i t e ' s coordination of outsourced parts and finished goods, along with its own production in Europe.