Bose Corporation

Bose Corporation is a worldwide producer and seller of audio systems. They sell/produce audio premium speakers for automobiles, hi-fi systems and broadcasting systems and would like to be the ‘Leading manufacturer of quality sound products‘. Over time they have established a network of international subsidiaries, distributors and manufacturing sites. Each one has facilities and a staff of people who represent Bose® interests within these countries: Australia, Austria, Belgium, Canada, Denmark, France, Germany, India, Ireland, Italy, Japan, Netherlands, Norway, Poland, Sweden, Switzerland and the United States and United Kingdom. Bose® employs approximately 9000 employees and had distributors in 45 countries. This results in total annual sales over $3 billion.

The Dutch head office is based in Edam. Nowadays the sales department for hi-fi and home cinema products is located in here, even as the marketing department and supportive services and their EU export-division. But before the ’90 these were not the main functions for this location. This location operated as a central warehouse for Europe. There were manufacturing facilities in Ireland and USA who stocked all their products in the central warehouse in Edam. This central warehouse in Edam made sure that there was weekly replenishment of local warehouses out of Edam. These local warehouses were located at Bose EU subsidiaries and distributors. These local warehouses replenished local distribution to dealers.

However this system seemed well organized, there was still a lot of room to grow. At the beginning of the ’90 Bose was growing enormously and this logistics model no longer supported the growth effectively. There was too much inventory in the supply line and dealers require frequent deliveries, instead of holding inventory. When in 1993 the EU internal border opened and from that moment on products, people and services could transported for free, Bose created a master plan. They created a new self...