This thesis was commissioned by Kymi-Solar Oy, a startup company founded in 2016. The aim was to find a cost-effective, yet the most risk-free subcontracting network for Kymi-Solar Oy's patented OptiSun product. The OptiSun solar and extract air heating system is an environmentally friendly hybrid heating system. It is based on waste heat recovery and designed especially for Finnish weather conditions.

The problem at Kymi-Solar Oy was the lack of purchasing experience: the company had not made any international purchases and was not familiar with the risks associated with the contracts. Therefore, this thesis focuses on the means by which the risks in the supply chain can be managed. The intention was also to find out whether the absorbers required by OptiSun would be more profitable to buy from Chinese or EU manufacturers, when considering the risks involved in external trade as well as the risks based on quality.

The thesis was carried out as a case study and by using qualitative research methods. As methods of data collection semi-structured interview were used, and responses to tenders were analyzed during the study. Both price and quality-based comparisons were made for the absorbers, and general instructions were given to the company to facilitate the verification of the qualifications of the service providers. Furthermore, information was provided on the contracts related to the OptiSun product and on future procurement contracts.

On the basis of this study, it was concluded that the absorbers which are manufactured in China are on average cheaper when transport costs and customs duties are included. The quality of the EU-made product was slightly better. As the study progressed, it turned out that the most advantageous as for the risks would be buying absorbers from an experienced Finnish importer.

In conclusion, it is worthwhile to buy the absorbers from a Chinese manufacturer, but through an importer. This makes the price remain affordable, but the major risks included in the contracts remain with the importer. There was no tender for service providers, as the design and installation of the OptiSun product are customer-specific. However, the company will be able to take advantage of the guidelines that have been drawn up.