The case describes the disruption caused by the shortage of chips and sensors in the automobile sector. Although semiconductors used in the automobile sector are essentially low value and cost only a few dollars, they are technologically intensive in terms of both design and manufacturing. Moreover, only a few players in the manufacturing sector have the capability to produce chips, creating an asymmetry in the power equation. Interestingly, the semiconductor value chain is adapting to new geopolitical tensions, and the chipmaking landscape may undergo a significant change in the next 10-15 years. In this context, the case discusses the structure of the semiconductor industry as a whole and its characterization within the automobile sector. It also describes the current sourcing model of semiconductors used by automakers. The main objective is to help students better understand the complex and evolving supply chain structure and its implications for automobile companies worldwide. The case concludes with specific questions about how automakers should restructure their semiconductor supply chains and address future disruptions.
This case describes the sourcing contract selection challenge faced by an electronics manufacturing company. The company must decide whether to continue the existing wholesale price contract, or should they switch to the quantity flexibility contract suggested by the supplier.
The case describes the contract selection issue by an embedded product manufacturing company towards the procurement of a component. The manufacturing manager is evaluating various procurement contracts. Currently, the company sources the component through a long-term wholesale contract combined with sourcing it from an alternate online platform. The supplier firm has suggested an options-based contract. The manufacturing manager is also planning to discuss buyback-based sourcing contract with the supplier.
This case describes the sourcing challenge faced by a firm which is involved in contract manufacturing of a device. The company must decide whether to continue as a contract manufacturer where they are engaged in a wholesale price contract, or they should get into the development of their channel by engaging with the design firm through a revenue sharing contract.
Dynamic Technologies (DT) is a India-based aerospace manufacturing company which is supplying sub-systems to a Tier 1 aerospace vendor. Owing to superior performance the aerospace OEM offered to directly source the entire system from DT. As a supplier to the Tier 1 vendor, DT was engaged primarily in labor-intensive assembly operations. However, as a direct supplier to the OEM, it will also involve complex precision manufacturing. The question is whether DT will be able to conduct this critical operation in-house or depend on a European company which was engaged in the precision manufacturing when DT was supplying to the Tier 1 vendor. There were other complexities, such as, the vendors for special grade metals were not available in India and these have to be sourced from Europe. The CEO of the company was grappling with two options suggested by his deputies and the inherent risks involved. Can he come up something different?
SATTVA eTECH is an electronics company involved in design and development of embedded new products. The senior manager of the company is working on the planning and execution of a defense project. Further, the manager is also evaluating the various alternative strategies to tackle uncertainties in the project network.
SATTVA eTECH is an electronics company involved in design and development of embedded new products. The company designs and manufactures client's requirements ranging from nuclear control systems to industrial automation systems. The company is analyzing the three potential design orders received from clients of different industry segments. One of the managers (Samidth in the case) has been assigned the responsibility to present his independent assessment of this order selection dilemma and present the entire detailed analysis to the company's top management.
Ferrero Group is a confectionery manufacturing company which produces a line of chocolates and chocolate spreads with hazelnut as the main ingredient. The company is the largest buyer of world hazelnuts (25%). The company procures hazelnuts from Oltan, the world's largest producer of processed hazelnuts with a market share of 25% to 30%. Ferrero purchases almost 70% of Oltan's hazelnut production. Recently, there was crop damage owing to which the harvest of hazelnut crop is low. This has increased the prices of hazelnut. One of the customers (Esha in the case) is concerned about the price increase of Nutella owing to such hazelnut supply issues. Hazelnut is a major ingredient of this chocolate spread. Esha is considering Ferrero's vertical integration, in which it may decide to purchase large producers such as Oltan. Further, she is also evaluating the implication of such a strategy for the final market prices of Nutella.