Supply Chain Management Case Study Bose Corporation
Discuss how the strategy develop process might work for organization like Bose?
As per the analysis of Mozcka, the process of strategy development is comprised of different classes including:
Defined business purchase strategies
The determination of strategic significance of commodities
Determination of purchase and business requirements
Market research
Development of goals and Analysis of gaps
Execution of strategy and Monitoring the outcomes
Review of performance
In my opinion, since Bose produces premium audio speaker, their planning of business, aggregate planning and their planning for production should be complied and consistent with the organizational supply chain procedure. Since the high-tech audio system of Bose is used by those customers, who have higher disposable income in their products like high quality automobiles, high quality audio system and commercial broadcasting systems, therefore, the development of their strategy should be responsive and consider the uncertainty of demands.
Highly Responsive Supply Chain
As per the Standards of SCM 445, it is important to have complete understanding of the customer in the supply chain management, since it is the only way through which organization is able to achieve the lowest possible total cost. The supply chain strategy of Bops Corporation should be highly responsive to the customer base as their product is of higher price and quality. Several organizations have different target market and customers. For instance, Camry of Toyota and Lamborghini's customers are different. The customers of Lamborghini are not conscious about fuel efficiency; however the customers of Camry would be conscious for this feature. These customers also show concern for mileage. In other words, the strategy of Bose Corporation should be designed according to the targeted customers, who want to purchase high quality speakers. These people want to receive high quality services when they purchase the premium speakers of Bose. Thus the supply chain of Bose Corporation should be responsive.
High Responsiveness To Uncertainty Demand
It has been studied that demand uncertainty is a considerable concept in the management of supply chain, since this uncertainty may lead to bullwhip effect due to which forecasting becomes difficult. Bose Corporation might have high uncertainty in demand as compared to an organization that makes normal speaker, as the products of Bose have premium quality. Because of high demand uncertainty, it is required from the management to have efficient and effective supply chain strategies.
Precisely, since the product of Bose has high demand uncertainty and the organization is required to be more responsive to customers, their process of supply chain should have effective coordination with retailers and suppliers. The organization can achieve supply chain coordination with highly advanced information technology systems and innovation in supply chain structures.
What should be the relationship between Bose's supply management strategy and the development of its performance measurement system?
The supply chain management of Bose Corporation is significant for maximization of their net profits and production of high-quality product in longer term of business. The organization has single sourced strategy in wood, particle board, plastic injected models, woofers, glues fabric and 800-1000 parts. Since, the organization is more powerful than its ...