Bose Corporation Case Study

1103 Words 5 Pages
Register to read the introduction… How many sources do they want/need? How can they rate/rank their performances?” etc. Supplier performance measurement is at the forefront of this next stage. It needs to directly tie in with the organizations strategic goal because of its importance to the company’s success. The fact that Bose strives to further implement the use of JIT and single source suppliers to lower costs, lead times and inventory, amongst other things, is the reason why it is crucial for Bose to make sure they select suppliers that can fulfill their high quality standards. But quality isn’t the only thing that can be taken into consideration; the suppliers must have the capacity to stay up to date with order quantities and be very agile and responsive as well. A lot of Bose’s success as a company comes directly from its supply chain and a lot of the supply chain’s success comes from capable suppliers. Without total cooperation and quality from it’s suppliers, Bose’s JIT or single source supplier system would fail. Since suppliers are so critical to Bose’s success, the supplier performance measurement system needs to be robust, but at the same time rewarding. Without the suppliers wanting to work for your company, without them wanting to work to receive a certificate of achievement, Bose is left with serious problems. Maintaining a ranking system that not only benefits Bose, but their suppliers as well, is crucial to the company’s …show more content…
The newly implemented EDI (electronic data interchange) system they use within domestic logistics domain is a prime example. Knowing where their products are at all times, in up-to-date real time is quite the benefit, but it doesn’t end there. Not only is all of the product being monitored, it also gives Bose the opportunity to streamline shipping channels to reduce cost and the ability to select shipments for expedition. The EDI system that Bose uses, gives them the ability to ensure that all domestic deliveries are on track and will be delivered on time, at all times, making it the ultimate tool to drive up levels of customer service. Beyond the technology, the EDI system has one other necessary component, the transportation carrier. For a system like Bose’s to work, entering a long-term contractual agreement with a capable company gives both parties security and leading to much better process

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