Case Study: Wiring Harness
Case Study:
The Global Sourcing Wire Harness Decision
Ricky J. Myers
Embry-Riddle Aeronautical University
April 25, 2013
Abstract
As Sheila Austin works out the decision to source from one of the two suppliers that have responded to her request for quotes for a new wiring harness for Autolink, she is faced with a decision to go with an international supplier in China, or from a local supplier. The initial look at the price quotes would steer towards the international source, but the underlying fees and costs associated with the international seller would make her think twice about accepting that deal. The in-depth analysis will steer her in the right decision to which supplier is the better candidate as well as how the cost per unit is broken down. Sheila needs to make her decision to start the retooling of the manufacture systems to accommodate the new design, and begin delivery. Which manufacturer will be the better option for Autolink to provide the product the assembly plant for installation? We’ll discuss the best choice of the potential suppliers that Sheila should start contracting with, and how that decision was made.
The Global Sourcing Wire Harness Decision
Introduction
As the auto industry continues to update itself and keep their products current with modern technology, the need to change models is ever-increasing to keep up with customer demand. As we look at the manufacturing process and sourcing, overseas and domestically, for the necessary materials, parts and services, several factors will always stand out: How cost effective is the local market versus the international market for supplier pools? What quality can the manufacturer support for their price? How well can the buyer maintain the supply distribution channels for either storage or Just-in-Time deliveries?
“Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four
The Global Sourcing Wire Harness Decision
Ricky J. Myers
Embry-Riddle Aeronautical University
April 25, 2013
Abstract
As Sheila Austin works out the decision to source from one of the two suppliers that have responded to her request for quotes for a new wiring harness for Autolink, she is faced with a decision to go with an international supplier in China, or from a local supplier. The initial look at the price quotes would steer towards the international source, but the underlying fees and costs associated with the international seller would make her think twice about accepting that deal. The in-depth analysis will steer her in the right decision to which supplier is the better candidate as well as how the cost per unit is broken down. Sheila needs to make her decision to start the retooling of the manufacture systems to accommodate the new design, and begin delivery. Which manufacturer will be the better option for Autolink to provide the product the assembly plant for installation? We’ll discuss the best choice of the potential suppliers that Sheila should start contracting with, and how that decision was made.
The Global Sourcing Wire Harness Decision
Introduction
As the auto industry continues to update itself and keep their products current with modern technology, the need to change models is ever-increasing to keep up with customer demand. As we look at the manufacturing process and sourcing, overseas and domestically, for the necessary materials, parts and services, several factors will always stand out: How cost effective is the local market versus the international market for supplier pools? What quality can the manufacturer support for their price? How well can the buyer maintain the supply distribution channels for either storage or Just-in-Time deliveries?
“Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four
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