Essay about Gscm

803 WordsDec 20, 20124 Pages
Ques. 1) Based on the risk factors associated with the Bugabyte and the Bugabyte Lite, which product do you think Grunwald and Vogel will recommend as the best candidate for assembly outsourcing? Ans: The present case is based on Managing Procurement and Global Sourcing. Here in the present case the company Metrovox purchases the components for Bugabyte and Bugabyte lite from the suppliers in China. Afterwards the assembly of both the product is done at German assembly plant. Now due to recent development of the video capable in Bugabyte there is delay in production which contributes to 30 percent late delivery rate. Due to this reason the management decide to outsource the assembly process to one of the suppliers. They hired the…show more content…
3 Negative impact on employees 4 Gaining outside expertise 4 Cultural Difference 5 Ability to focus on core competencies 5 Documentation 6 Obtaining outside technology 6 Political Instability 7 Shipping delays In the present case on the bases of Grunwald and Vogel`s decision the benefits are as below: a) The delay rate in the production will be decreased by outsourcing the assembly fuction near the supplier of the parts. b) The whole product will be shipped onced. c) As Bugabyte is mass manufacturing product so it will be very much cheap for manufacturer to outsource someone for the assembly process. and the disadvantage are: a) If the outsourcing company will not do the proper testing then may be the product quality will decrease. b) Might the assembly process outsourced company copy the patent as they had the product description. Ques. 3) In the event that Metrovox can outsource the assembly of the circuit boards to an existing supplier, discuss the key contract issues Metrovox will need to consider with their supplier. Ans: The key contract issues Metrovox will need to consider with their supplier are as below: a) There must be negotiation done. For example as below: 1) What quatity is being assembled? 2) Availbility of discount for what amount
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