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Bose Corporation: The JIT II Program (A)
Bose Corporation: The JIT II Program (A)
II Program (A)
Presented by: Group 2
Apurva Mittal (161210)
Harpit Agrawal (161220)
Harshvardhan Chauhan (161223)
Mohammed Rehan Kadri (161233)
Pranjali Rastogi (161241)
Brief on important case facts, about
the company
CASE FACTS
BENEFITS
Bose Vendor
•Access to purchasing, product-expertise and •Opportunity to work long term with Bose Corp.
order fulfillment resource at zero cost –Possibility of bigger contract with Bose Corp.
•G&F rep is aware of Bose’s needs – Continuous learning
•Faster delivery – lower lead times •Relationship with Bose gets stronger – Social
Bonding
•Reduced number of suppliers
•Access to Bose systems, facilities and people
•Long-term relationships
–Better synchronization of production and
•Better quality at reasonably low cost
delivery schedules
• Quality ensures good sound reproduction
–Interaction with Bose gives insights
•Reduced waste in order processing and
•Improved Profitability
inventory
Risks
Bose Vendor
•Lack of top management buy-in/commitment
•Financial hit of $80,000 per year
•Confidentiality of information –Insufficient volumes from Bose may
•Loss of control on purchasing for Bose render relationship unviable
•Purchasing might object • A lot of investment in one customer –
•Contract makes switching difficult in case of poor problems at
supplier performance Bose may affect G&F
– Problems like strikes at supplier may hamper •Need for redesign of existing processes
supply for new system
•Possibility of unfair pricing –Inability to react to quick
–Effects of inflation & changes in raw material prices changes can hamper
on vendor price
relationship
•Lack of formal criteria to determine when and
•Inability to supply to upcoming plants in
with whom to establish JIT II relationships - can
Mexico and Michigan may affect
create
relationship
contractual liabilities
Thank You