Bose Case Study

Bose Group Project Case Questions 7-11: Courtney Coleman

7. There are several reasons BOSE would want to single source more than multi source. In the long run single sourcing saves time and money. It diminishes opportunities for errors in production and distribution. Also, the variation in production is very small verifying great quality. Some of the risks associated with single sourcing would be risk of a buyout on the suppliers end. Without the supplier you are forced to delay production and begin search for a new supplier. Another disadvantage that occurs is the loss of interest in your company from other suppliers and you could lose your competitive edge.

8. When implementing Just-in-time with international suppliers you may run into governmental issues as well as union/ labor issues that you have no control over, but that is with any company.

9. Bose is setting up international trading advantages by using offshore suppliers. The costs of the goods BOSE wants to buy are cheaper elsewhere. BOSE is also finding the quality of the products is a bit better. Bose is also getting low cost skilled labor, low cost raw materials, tax breaks, and low trade tariffs.

10. JIT is a purchasing concept for reducing lead times in time-based competition, just-in-time management. JIT II is building a customer supplier relationship. The employee of JIT II is located in the warehouse helping with warehouse labor, but is not being paid warehouse money. BOSE saves money on personnel by having the employer here as a JIT II partner.

11. When entering into long term contracts with suppliers such as Bose did you avoid fear of strikes and yearly bargaining fees. Another advantage would be always knowing the labor cost and not having to anticipate too many interruptions.