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    Bose-Grp9

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    Bose Corporation was considering participating in a JIT II program with one of its suppliers, G&F. JIT II is a customer-supplier partnership that involves placing the supplier's representative in-house at the customer to facilitate coordination between the companies. Some benefits of JIT II for Bose included access to a purchasing resource at no cost, faster delivery times, and reduced waste. Potential risks for Bose included loss of purchasing control and confidentiality issues. The report provided recommendations for incentivizing G&F's participation, such as offering a bigger share of business, and establishing formal criteria for selecting JIT II suppliers.

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    Bose-Grp9

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    Bose Corporation was considering participating in a JIT II program with one of its suppliers, G&F. JIT II is a customer-supplier partnership that involves placing the supplier's representative in-house at the customer to facilitate coordination between the companies. Some benefits of JIT II for Bose included access to a purchasing resource at no cost, faster delivery times, and reduced waste. Potential risks for Bose included loss of purchasing control and confidentiality issues. The report provided recommendations for incentivizing G&F's participation, such as offering a bigger share of business, and establishing formal criteria for selecting JIT II suppliers.

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    Bose Corporation was considering participating in a JIT II program with one of its suppliers, G&F. JIT II is a customer-supplier partnership that involves placing the supplier's representative in-house at the customer to facilitate coordination between the companies. Some benefits of JIT II for Bose included access to a purchasing resource at no cost, faster delivery times, and reduced waste. Potential risks for Bose included loss of purchasing control and confidentiality issues. The report provided recommendations for incentivizing G&F's participation, such as offering a bigger share of business, and establishing formal criteria for selecting JIT II suppliers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2K views13 pages

    Bose-Grp9

    Uploaded by

    tarun7787
    Bose Corporation was considering participating in a JIT II program with one of its suppliers, G&F. JIT II is a customer-supplier partnership that involves placing the supplier's representative in-house at the customer to facilitate coordination between the companies. Some benefits of JIT II for Bose included access to a purchasing resource at no cost, faster delivery times, and reduced waste. Potential risks for Bose included loss of purchasing control and confidentiality issues. The report provided recommendations for incentivizing G&F's participation, such as offering a bigger share of business, and establishing formal criteria for selecting JIT II suppliers.

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    of 13

    Bose Corporation: The JIT II Program

    Submitted to: Prof. G. Shainesh Customer Relationship Management Term VI

    Case Analysis: Grp-09 Manish Kumar Urele(0911033) Shubhajeet Mazumdar(0911051) Suhas S Shetiya (0911055) Vijay Kumar (0911207) Neeraj Kumar Agrawal(0911257)

    LOGO

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    Contents

    1. 2. 3. 4

    Bose & Supplier relations Buying & Selling context Participation in JIT II by Bose and G&F?

    LOGO

    Bose History

    LOGO

    Bose strategy & Sourcing Policies


     Corporate Procurement Buying Center
      Design engineer, Materials Planner, Buyer Vendor salesperson from selling organization visits Bose to get orders

    Exploring new markets Highest selling manufacturer in Japan, France, Holland & Australia Believed in good sound is universal

    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

     Pre-1988
     Centralized purchasing by Corporate Procurement; delivered to plants  No purchasing by plants

     1990
      Decentralized Purchasing by plants against contracts negotiated centrally

    LOGO

    Bose-Supplier Relations
    Increased dependence postpones internal development

    Long term supply of similar part increases specialization

    Backward integration Careful selection of

    Vendors supply components based on their capability

    Components not necessarily what Bose wants from the vendor

    vendors Vendors not considered partners

    Lack of understanding about buyers and their needs

    Costlier to source externally than to make inhouse

    LOGO

    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

    Traditional Supply Chain

    LOGO JIT

    JIT & JIT II


    JIT II

    LOGO

    JIT II Program
    Process

    JIT II, a customer-supplier partnership concept implemented through system integration JIT II links engineering, planning, and purchasing departments System integration is achieved as sequential processes No longer separated by functional or organizational walls. A supplier's sales representative - in-plant representative Works full-time in a customer firm Is paid by the supplier The customer serves as the host organization Functions as an employee of the customer's purchasing department Attending planning meetings Determining material needs. The in-plant is then authorized to purchase materials from the supplier for the customer The customer's regular purchasing staff is free to concentrate on non-JIT II suppliers In plant representative
    Vendor Planning Purchasing Engineering

    LOGO

    Purchasing methods
    Traditional
    Smaller lot sizes

    JIT

    Relatively large lot sizes More frequent deliveries Less deliveries at higher quantities Long-term contracts Lowest price is main objective Minimal paper work Time consuming, formal paperwork Less formal communication Formal communication Shorter lead times Longer lead times JIT II Supplier comes into the organization

    LOGO

    Benefits of JIT II
    Bose G&F
    Opportunity to work long term with Bose Corp. Key/Strategic Account for G&F - $2.1 million of revenues and 10% PBIT 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 Interaction with Bose gives insights Improved Profitability

    Access to purchasing, product-expertise and order fulfillment resource at zero cost G&F rep is aware of Bose s needs Faster delivery lower lead times Reduced number of suppliers Long-term relationships Better quality at reasonably low cost Quality ensures good sound reproduction Reduced waste in order processing and inventory (warehouse and storage) Reduced paperwork higher turnover, lower cost

    LOGO

    Risks of JIT II
    Bose G&F
    Financial hit of $80,000 per year Insufficient volumes from Bose may render relationship unviable A lot of investment in one customer problems at Bose may affect G&F Need for redesign of existing processes for new system Inability to react to quick changes can hamper relationship Inability to supply to upcoming plants in Mexico and Michigan may affect relationship

    Lack of top management buy-in/commitment 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

    LOGO

    Recommendations

    Bose needs to incentivize G&F Prestige of being a preferred supplier Bigger share of business for G&F Reduction in costs can boost profitability for G&F and Bose 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

    Explore possibility of structural bonding through internet and EDI technology to lower costs Define formal criteria to select JIT II suppliers Bose needs to monitor incoming quality Collaboration in quality improvement

    LOGO

    THANK YOU

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