Professional Documents
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Presented By:
Raisha Shakya Rashma Dangol Sabina Panthi Saurav Pokhrel
BACKGROUND
Greg Jamison, the head of global sourcing at US Tech, has a complicated situation The U.S. consumer electronics giant has long outsourced much of the design and production of company to its branded offerings to Tai Source, an original design manufacturer, or ODM, in Taiwan. Tai Source, in turn, has moved most of its manufacturing to Beijing, giving US Tech many of the cost benefits and none of the hassles But commodity producers are squeezing
Rethink its sales strategy in China And its relationship with Tai Source. When Greg hires a longtime Tai Source employee to get a feel for the fast-growing China market and scout out other suppliers in China and Taiwan, relations between the two companies start to fray There are signs that Tai Source plans to market its own branded goods in China.
How can US Tech protect its relationship with Tai Source while it explores sourcing and sales opportunities in Asia?
Multiple sourcing
Trust alone is not sufficient. Effective relationships need to be grounded in a current, quantitative, and shared understanding of supply chain environment and best practices. Rigorous study of the suppliers in both Taiwan and China. Alternatives to pure ODM sourcing and