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Agile Electric Quality Issue in a Global Supply Chain Case Solution & Answer

Agile Electric Quality Issue in a Global Supply Chain Case Solution

Introduction

The report contains an analysis of the issues faced in providing electronic component to an OEM by 5 suppliers divided in 4 tiers. The suppliers include various global and Indian suppliers. The report provides a summary of the case followed by background of each supplier along with the issues discussed in the case. The report also provide possible solutions and a recommended short term and long term action plan.

Background

The case involves a discussion of certain quality issues related to the supply chain and how these issues evolved with the passage of time in context of a global multi-tiered supply chain. The multi-tiered global supply chain includes various players including Ford, Automaker, Agile, ECPL, BIPL and other US based tier 4 suppliers. Details for each of the party involved is given below. (Dhruv Dar, 2012)

Ford:

Ford is one of the world’s largest OEMs (original equipment manufacturers) in automotive industry. It is located at the pinnacle of the global supply chain discussed in the case and has a critical importance for Automek to enter into OEMs market that could bring potential growth opportunities for Automek.

Automek:

Automek is a North American based, globally located multinational auto component manufacturer. It is the tier 1 supplier in the global supply chain discussed in the case with the responsibility of electronic component assembly. It usually provides set of complete systems to a number of vehicle manufacturers internationally. The success of the project of supplying actuator to OEM was critical to Automek as it could come up with strategic growth opportunities. Automek chose to include low-cost, quality focused suppliers in its list to cope with the intense competition in the North American market for which it chosen Agile considering its quality focused culture and attractive pricing. The bond of the two global suppliers became highly successful providing mutual benefits to both of the parties since years with Automek increasing its ties with Agile along with providing technical support through sending its engineers for products which Agile has no experience.

Agile:

Agile initially was an Indian subsidiary of Japan in 1990s for the purpose of production and sale of electronic motors and their parts. Now the firm has expanded its production to a number of divisions and is capable of producing making electrical, sheet metal and plastic parts. Agile has long term relations with Automaker considering it to become its top three customers in coming future. It is the tier 2 supplier in the global supply chain discussed and is responsible for actuator assembly…………..

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