Uploaded by Jenny Tucker

Case Study Bose

1.Discuss how the strategy development process might work at a company like Bose.
The definition of client requirements and how the business might better meet them forms the
basis of the strategic development process. For instance, Bose's customers include automakers
like Honda and Nissan as well as other precise retailers who ship their goods. Understanding the
competition has a significant impact on the company's supply and procurement strategy. To help
Bose launch new goods as soon as feasible, suppliers must be able to integrate with the
company's technological innovation and rapidly react to its needs. In Additionally, this
guarantees that providers will respond quickly, efficiently, and with a prominent level of service.
2. What should be the relationship between Bose’s supply management strategy and the
development of its performance measurement system?
There should be a strong bond between the two. The supply management strategy includes
having a strong supplier–manufacturer relationship, timely delivery of high–quality components,
few quality problems, and responding quickly to customer demands. The purpose of the
performance measurement system is to manage providers so that the two parties can meet the
protocol. The enhancement of top-tier suppliers who can bring innovation, quality, performance,
delivery, and service capabilities with them is emphasized by the supply management approach
in this instance. According to the quality measurement method, all regions will have high-quality
suppliers. Bose keeps an eye on timely delivery, technical advancements, performance in terms
of quality, and supplier bids when necessary. They gauge how well the logistics for
consignments are working as well.
3. Why is purchased quality so important to Bose?
Quality is a hallmark of Bose goods. The price also reflects this. It belongs to Bose, Bose. If their
customer satisfaction deteriorates, customers may as well switch to a lesser priced label. Low
quality is not tolerated by companies like Honda and Nissan, and since materials provided by
Bose's suppliers also determine quality, quality performance is a key component of Bose's supply
chain performance evaluation system. If Bose wants to produce finished products that are
trustworthy in the eyes of their clients, this quality evaluation is essential. Finding vendors who
can deliver items that fulfill quality standards is crucial for the purchasing department.
4. Can a just-in-time purchase system operate without total quality from suppliers?
Quality is crucial in a last-minute acquisition framework since inadequate quality might lead to
excessively expensive deferrals. For instance, a shipment containing rejects must be returned to
the supplier if it arrives at Bose's acceptance docks. Such occurrences can occasionally shut
down the line when Bose conveys almost no stock (for instance, the line runs out of parts despite
the provider's supply being regular that day!). This means that Bose's deliveries to its customers
have now been delayed, causing problems, losing some market share overall, etc. Bose must
keep an eye on the quality of its source to prevent this.
5. Why can some components arrive at the Hillsdale, Michigan, plant with no incoming
inspection required?
These parts are mostly obtained from vendors who have submitted a certificate of achievement
application form. These vendors are considered qualified if their consignments have fewer
than 1% faults and arrive on time. This does away with the need to approach inspections.
Given the importance of quality to Bose, the student might be perplexed as to why a
forthcoming inspection at the Hillsdale facility is lacking. However, this strategy might be
linked to a procedure known as supplier accreditation, in which suppliers go through a
challenging period and come under intense inspection over time. In addition, the product,
technicians, and members of their families are all inspected. If the provider is successful in
this process, at this point his shipments will undergo routine inspections. The supplier will
be accredited, and each shipment will enter the line without inspections if the supplier
conducts the inspection without rejection.
6. Discuss the reasons why Bose has a certificate of achievement program for identifying
qualified suppliers.
There are several justifications for placing recognized achievement programs beneath qualifying
providers. As was previously discussed, approved suppliers will first make deliveries on
the production floor, doing away with onerous scrutiny of subsequent shipments in this
manner. This can therefore shorten the process and cut expensive inventories even further.
Additionally, engineers are now capable of designing items and recommend a purchasing
database when developing a new component is necessary, which is another significant
benefit of supplier certification. A qualified supplier may now be accessible for
manufacture and delivery if a part is now available that comes near enough to meet their
7. Bose is moving toward single sourcing many of its purchased part requirements. Discuss why
the company might want to do this. Are there any risks to that approach?
To reduce the volatility of their supplier network, Bose is moving toward switching single
sourcing. Single sourcing can lead to key players banding together, which is a common
ongoing relationship involving a commitment over an extensive time period, the sharing
of data, and the risks and benefits of the relationship, which have many interesting points.
There are also many benefits to using various sources, such as: Limit restrictions should
be kept to a minimum. Such as, access to innovation that is rapidly evolving and lowers
the source risk, like variations in quality, strikes, adverse weather, disruptions to the
supply, and other factors that may occur.
8. Discuss some of the difficulties a company like Bose might experience when trying to
implement just-in-time purchasing with international suppliers.
Trying to implement JIT buying with external sources has a lot of drawbacks. This also includes
the following: extended lead times, increased stock, another time zone, and various
dialects. This includes issues with specifics not matching up and potential changes in
social contrasts. Expect delays in transportation at customs and the periphery. Issues with
protected invention exist throughout several countries Other potential problems include
quality. Bose "had to discover a way to merge minimal inventory with buying from distant
suppliers," according to the company's director of purchasing and logistics, because
overseas sourcing does not support JIT delivery. The JIT (Just in Time) system cannot be
used by foreign vendors to produce and transport materials.
9. Why does Bose have to source so much of its purchase requirements from offshore suppliers?
Why is Bose acting in this manner given the variety of problems that could arise with JIT
acquiring from seaward providers? The right answer is that global suppliers typically offer
products with better innovation and frequently at a lower cost. Since the majority of
hardware vendors are based in Asia and the Pacific, it seems sense that Bose would select
the best vendors with whom to partner. In order to compete in a global industry, one must
source from global suppliers.
Bose has clients overseas. Without having to hold items at a more distance facility, it may ship
quickly to those consumers once its suppliers are finished.
10. What makes the JIT II system at Bose unique? Why would a company pursue this type of
It shortens the time needed to complete tasks and saves money on labor costs associated with
warehousing, shipping, and related activities. The strategy combines on-site minimal inventory
storage with the use of the traditional JIT system. Another element of the JIT II system is the
"best EDI (Electronic Data Interchange) infrastructure in the industry." The whereabouts and
movements of each freight handler terminal both inside and outside of Bose are tracked by the
EDI system.
11. Why is it necessary to enter into a longer-term contractual arrangement when pursuing
arrangements like the one Bose has with its domestic transportation carrier?
JIT systems require less variance. That is possible with longer-term contract arrangements, but
not with simple, rapidly evolving agreements.
12. Why is it important to manage logistics time elements proactively when pursuing higher
levels of customer service?
Bose may present itself as a company that is customer-driven thanks to the time factor of
logistics. The "technology works near to real - time basis and permits two-way
communication across all 230 freight handlers ports at Bose" is how they accomplish this.
13. What role does information technology play at Bose?
The role of proof is played by information technology. Bose's supply chain strategy is controlled
and maintained by an automated system created with innovative technology. The
Electronic Data Interchange (EDI) system from Bose is crucial for tracking shipments,
verifying delivery status, and monitoring order status. Through the processing of
transactions, EDI also has a significant impact on the organization's ability to save
thousands of dollars. Financial managers projected that implementing EDI would reduce
the cost of ordering and receiving a product from $150 to just $5. In addition to this, the
Bose has become more well-liked in the real-time process. A low-cost shipping and
distribution system may be examined by the organization thanks to the information's
automatic updating and downloading numerous times each day.
What advantages do information technology systems provide to Bose that might not be
available to a company that does not have these systems?
The following are some benefits that business experiences because of information technology.
The ordering process and product delivery time are sped up by information technology.
Additionally, information technology lowers clerical and inventory expenditures. Bose has
the ability to have bilateral communications with its cargo carriers, suppliers, and obtain
daily updated data. It offers comfort. If other companies do not offer that convenience,
Bose might have a competitive edge.
Why has Bose developed its supplier performance measurement system?
A critical component of Bose's provider improvement method is their provider execution
estimation system. On-time delivery, quality compliance, specialized improvements,
management quick to demands, and process length are used to evaluate providers. By
carefully monitoring these crucial indicators, Bose is able to continuously enhance its
supply chain. The provider is instantly informed and alerted when provider execution
starts to lag, enabling them to take corrective action to address the problem. The top
management of the provider pays close attention to these measures. Employees from the
supplier company called Bose acquiring in Hillsdale pleaded with them not to include the
incident in the week-by-week execution report because they did not want to have to face
the VP of the company who paid special attention to the performance measurement
Do you think the performance measurement systems at Bose are computerized or manual?
Computers cannot perform all tasks. A computer may occasionally perform a task more precisely
than a person. for instance, quantifying data A computer, on the other hand, is unable to
interpret or utilize that information.
Bose Corporation Supply Chain Analysis. (2019, Dec 07). Retrieved from