Professional Documents
Culture Documents
Submitted byAmu Prabhjot Singh-10BM60011 Divya Hamirwasia-10BM60025 Sampurna Rakshit-10BM60077 Siddharth Verma-10BM60086 Swarnabha Shankar Ray-10BM60092
Contents
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Bose history and supplier relationship
BOSE History
1964
Dr. Amar Bose and Sherwin Greenbalt started BOSE corporation Launched 901 using the reflective technology
1968
Launched 501 smaller version of 901 1970 Approached GM for manufacturing car stereos Launched 301which fitted into a bookshelf
1973
1982
1990
Bose systems were incorporated in GM, Honda, Acura, Audi and Nissan
Continued..
Exploring new markets Highest selling manufacturer in Japan, France, Holland & Australia Believed in good sound is universal Corporate Procurement Buying Center Design engineer, Materials Planner, Buyer
Pre-1988 Broader channels of distribution High-end specialty stores Electronic retailers Direct marketing Produced systems and components Integrated systems trend Home theater systems Plug and play equipment Centralized purchasing by Corporate
Bose-Supplier Relations
Backward integration Careful selection of vendors Vendors not considered partners
Bose as a buyer
Expected more commitment from suppliers Lesser variation from component specified to reduce cost and manufacturing errors Frequently monitored technology used by vendors Finalized vendor only after close monitoring of pilot project
BOSE manufactures high quality audio systems which are technically superior and looking for vendors on the same line would help them simplify the process
Purchasing methods
Traditional
Longer lead times Relatively large lot sizes
JIT
Smaller lot sizes
More frequent deliveries Long-term contracts Minimal paper work Less formal communication Shorter lead times JIT II Supplier comes into the organization
Vendor
Opportunity to work long term with Bose Corp. Possibility of bigger contract with Bose Corp. Continuous learning Relationship with Bose gets stronger Social Bonding Access to Bose systems, facilities and people Better synchronization of production and delivery schedules
inventory
Risks of JIT II
Bose
Lack of top management buy-in/commitment
Vendor
Financial hit of $80,000 per year
Confidentiality of information
Loss of control on purchasing for Bose Purchasing might object Contract makes switching difficult in case of poor supplier performance Problems like strikes at supplier may hamper supply Possibility of unfair pricing Effects of inflation & changes in raw material prices on vendor price Lack of formal criteria to determine when and with whom to establish JIT II relationships - can create contractual liabilities
Recommendations
If Vendors agreed, how to deal with other issues
Treating Vendors Initially a restricted access to be given Confidential information about competitors will not be shared and so as other sensitive information. Access to necessary documents is ensured Over a period of time , the restriction will be minimized to reach the full potential of JIT II approach Competitors Competitors should be made sure that confidentiality of critical information will be maintained Number of suppliers will be drastically reduced in the future
Continued..
Collaboration in other areas such as product design as incentive for G&F to participate Open access for G&F representative to systems, facilities and personnel Badges for G&F representative - treated as Bose employees How to go about JIT II approach Criteria for JIT II approach Suppliers are selected based on the check list containing all the necessary conditions . Then, Top 3 suppliers are selected After due consideration about the product quality and quantity they produce one vendor is chosen A representative from the vendor should be seated in the manufacturing facility to ensure JIT II approach is maintained Maintaining Fair prices There should be a constant check in the market about the price. Innovation from the supplier side should be given due value Flexibility and quality of the product should be included while comparing the price.
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