Bose Case Study Final

1278 Words Mar 6th, 2015 6 Pages
Bose Case Study
By: Girdhar Agrawal goa5069 S.C.M. 406

Objective: To help Bose Corporation continuously improve, its sustainable competitive edge as technological leader of acoustic science, by analyzing and improving the performance of its Supply Chain.
Executive Summary: Bose Corporation, headquartered in Framingham, Massachusetts is one of the largest producers of audio premium speakers. These speakers are used in automobiles, high-fidelity systems and consumer, commercial broadcasting systems. The company has a global supply chain and procures, 20% of its material from foreign suppliers. It also procures, 35% of its materials directly from local suppliers. The firm is trying to move towards, single sourcing many of
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6) The certificate of achievement program for identifying qualified suppliers helps Bose distinguish the quality suppliers from the others. This in turn helps reduce inspection and other miscellaneous procurement costs, associated with the products procured from these suppliers.
7) Single sourcing is an effective strategy, while sourcing the most important parts for your product. It helps build supplier relations overtime, which ensures maximum performance. The risks to this approach though are: overreliance on one supplier and the loss of cost benefits, which can be obtained by auctioning contracts for non-essential raw materials.
8) Some difficulties that may be faced while trying to introduce just in time for international suppliers are: Increased transport costs to ship quickly over such large distances, government rules and regulations like inspections and other similar activities, which might hold product on port for longer than expected.
9) Bose sources a lot of its parts internationally as there are cost efficiencies to be observed when sourcing internationally. This is due to the presence of cheaper factors of production present in other countries.
10) Bose’s JIT II system allows it to pass on the responsibility of managing supply inventories, within the Bose plant to the supplier itself. This brings down inventory costs, due to proficient handling of raw material inventory by the supplier.
11) Flexibility and cost

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