Bose Swot Analysis

JIT was initially designed by Bose to allow the purchaser and the vender to work together to eliminate the need for inventory and multiple suppliers. The two worked as partners instead of adversaries. The company became more efficient in reducing administration costs and by reducing the amount of intermediaries. To increase saving in the purchasing department Bose implemented JIT II.

JIT II consist of suppliers adding a full time representative on site at the Bose plant. This representative would combine the task of planner, buyer and salesperson. This JIT II system benefitted; the administration of the purchasing function, the logistics, concurrent engineering and material stores and support services.

Strength

Having an in plant at Bose allows the supplier to be available for support at all time. The in plant representative reduces lead times because they actively taking part in production planning meetings, choosing materials and placing orders to supplier. This in plant must also ensure that all flows properly. This includes the necessary check ups such as making sure material arrives on time and quality assurance.

The customer and supplier both save cost in administration. The customer no longer needs to pay for the purchasing function because the in plants revenue is paid by the supplier. The supplier no longer needs to have a sales representative. Once the two partners have come to a agreement an evergreen contract is signed. This is a normal contract, however there is no end date thus ending when one party is unsatisfied.

JIT II improves communication through electronic data interphase. This reduces administrative savings by allowing Bose to communicate with the vendor with real time data and information. An in plant for transportation also uses EDI to know where material are in the shipping process. This reduces time and money that would have been spent on outsourcing transportation to another company.

Concurrent engineering is beneficial because the in plant is always on site therefore is very knowledgeable on the products