Global Supply Chain Management and Strategic Sourcing

Case Study 1

CASE STUDY: GLOBAL SUPPLY CHAIN MANAGEMENT AND STRATEGIC SOURCING

Ans. 1 Bugabyte and the Terabyte Lite, Grunwala and Vogel would advise Terabyte as best candidate for assembly outsourcing. This product is in market for more than six years and there are many competitors who are offering this same product. So there is no risk of copying of the technology as the technology is already available with other people. But the Bugabyte is a very new product and no one is familiar with the technology of this product so there are chances of people to steal the technology and create their own products similar to Metrovox.

Ans. 2 There are certain advantages and disadvantages of outsourcing the assembly function.

Advantages are-

1. It will help in getting production done on time.

2. It will reduce chances of late delivery of products to the clients.

3. It will reduce burden on the production line of Metrovox.

4. Metrovox can focus on production of new products and can concentrate on marketing of Bugabyte.

Disadvantages are-

1. There is risk of getting low quality standard products made by the suppliers in hi assembly line.

2. There is risk of modification of products by the supplier or there are chances of creating an unexpected competitor for Metrovox in the market.

Ans. 3 There are few contract issues that are to be considered by Metrovox with their supplier they are-

1. The quality of the product should be same as the quality standards of Metrovox.

2. There should be timely delivery of the products so that production process goes smoothly.

3. The product specifications should be according to the specifications mentioned by Metrovox.

Ans. 4 Economic Order Quantity strategy is the inventory management strategy that Grunwald and Vogel should recommend Metrovox to adopt to ensure efficiencies...