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BOSE CORPORATION

By
Vijaya Prabhu [10BM60097]
Sathishwaran [10BM60079]
Somaskhandan [10BM60087]
Sathyaseelan [10BM60080]

Company Background
Founded -1964 by Amar Bose, MIT professor
The business was based on innovations in acoustics and
electronics.
In its initial years the companys revenues were primarily
based on portable, battery-operated equipment.
Bose launched the first successful model - 901 speakers,
which were followed by further successful products like the
501 and 301 speakers. Bose entered the car stereo market
with a partnership with Delco division of GM and eventually
offered sound system to Honda, Acura, Audi, and Nissan.

BOSE Strategy for Growth


Bose was a privately held firm and had equal
distribution of revenues in Japan, Europe and
United States. The company tag line was Better
Sound Through Research
Mission: Provide outstanding sound experience to
everyone in the whole world
The company followed three strategies through
which it led its growth
Acquiring new markets persistently
Broader channels of distribution
Producing systems and components

Existing Corporate Procurement


Process
Design and product
specification

Solicit Bids

Selection and
Qualification of bids

Negotiate Contracts

Initiate Pilot Order

Day to Day purchasing


Handed over to Plant

JIT II Program
Benefits and Risks for Bose
Immediate cost reduction
In plant representative
Defined ceiling on all pricing.
Less paperwork
Eliminates duplication of work
Less Inventory
Flexibility and on time shipments
Stronger supplier alliance, hence better cost
control and employee count

JIT II Program (contd)


Benefits and Risk for the Supplier
Consolidated orders and potential to supply to
other plants as JIT II partner
Access to demands
Efficiencies and cost reductions.
Increased revenues
Better able to anticipate Bose needs
Better planning of schedule

Desirable Outcomes
Successful implementation of JIT II in plastics and
printing material
Reduced procurement cost
Improve internal manufacturing capability for the
components in each plant
Improving purchasing function through
decentralization
Maintain long term relationship with suppliers

Vendors will be interested or not


First , the vendors will not be interested.
We need to make them aware about the new
approach of BOSE (JIT II) .
The benefits of JIT from both the perspectives
should be explained
Long term benefits of the approach is to be
highlighted
CBA should be done to make them interested in
this approach ( Placing one Rep instead of 3)
Confidentiality of information
Bose corporation should increase the business offered to Vendors
participating in the JIT II program
Help vendors in planning their schedule better
Make them aware of the benefits of being part of JIT II

If Vendors agreed, how to deal


with other issues
Treating Vendors
Initially a restricted access to be given
Confidential information about
competitors will not be shared and so as
other sensitive information.
Access to necessary documents is
ensured
Over a period of time , the restriction
will be minimized to reach the full
potential of JIT II approach
Competitors
Competitors should be made sure that
confidentiality of critical information will
be maintained

How long this approach should last


This should be a perpetual relationship
between the Manufacturer and the supplier
This enhances the relationship with the
supplier ,results in enhanced
Flexibility
Profits
Innovative capability
Better products to get competitive edge in
the market

How to go about JIT II approach


Maintaining Fair prices
There should be a constant check
in the market about the price.
Innovation from the supplier side
should be given due weightage
Flexibility and quality of the
product should be included while
comparing the price.
Tracking the market price for the
products supplied by vendors (could be
performed by corporate procurement)
New products must be given price based
on the value provided to Bose

How to go about JIT II approach (contd)


Criteria for JIT II approach
Suppliers are selected based on the check
list containing all the necessary conditions
.
Rank the vendors based on past performance,
technology capability, quality etc.
Ensure Vendor commitment to the program
Set an evaluation period to understand the
improvement in performance
Finalize the vendor that provided maximum
benefits
After due consideration about the product
quality and quantity they produce one vendor
is chosen

Thanks you !!!