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Bose Corporation

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Analysis of Bose Corporation Case

Manufacturing Strategy at Bose
• Focus was mainly on speakers. The three most critical components of speaker design was;
1.Transducers, 2.Electronics, 3.The cabinet
• Three existing manufacturing units:
1.Westboro, Massachusetts; 2.Ste-Maire, Quebec; 3.Carrickmacross, Ireland
• Two planned manufacturing units:
1.Hillsdale, Michigan; 2.San luis , Mexico
• Plants were increasingly becoming self-sufficient. Expanding their range f manufacturing
• Three potential problems: o Separate priority and agenda for BOSE and the vendors o Long term relationships helped vendors become an expert by acquiring specialised capitals o In long term out-sourcing would be more expensive than in-house manufacturing.
Corporate Procurement Strategy
• The two major functions of the Corporate Procurement Division was :
1. Locating new vendors 2. Sourcing new parts
• Vendors were involved at a very early stage of product development – like design advice and product specification
• Elaborate screening process for choosing a vendor
• 4 types of personnel involved in procurement process:

1.Design Engineers, 2.Materials Planners, 3.Buyers, 4.Vendor Salesperson
• After 1988 procurement and purchase were decentralised and instead of Corporate Level, buying began at Plant Level
• Buyers at Plant were responsible for Quality, Cost and Delivery and decisions depended on the domain knowledge and experience of the representative
• 75% of buyers time were spent on Inventory planning, Adjusting Delivery Schedules and Order Placing. 15% of time was spent on revising the existing parts to ensure that they met quality level and the remaining 10% were spent for negotiations with existing or new vendors
• Preferred vendors were:
1.Those with secure financial positions, 2. Closely located,
3. Capable of faster delivery and consistency, 4.With

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