Viro Automotive Company Case
Jason Hwang
I S 300
Viro Automotive Company Case
1. Describe the supply chain of Viro Automotive Company
Viro Automotive Company’s supply chain is currently based on the pull system model; they manufacture and distribute the cars only after they have been ordered by their customers, rather than by forecasting demand (push system). After having received the orders from their customers, Viro then sends the orders to their own suppliers, or members of the supply chain. In this case, the main client is the President of the United States whom put in an order for his daughter, and expects the first car off of the assembly line. From receiving the order from the customer to handing over the car are all parts of the downstream portion of the supply chain. The upstream portion of the supply chain in this case, however, begins with the speed controllers. The speed controllers are made from Viro’s contract supplier, Oberfranken (tier 1 supplier). Oberfranken, a German based company, and they originally source their voltage regulators from Malaysia. However, because the factory was destroyed, Oberfranken had to find a new supplier for their voltage regulators, and turned to Zamboni, a tier 2 supplier. The new voltage regulators, unfortunately, used a higher voltage that needed to be recalibrated, so they outsourced to Yamagata, a tier 3 supplier in Japan. Yamagata then needed sealant for the circuits, so they outsourced to Consolidated Chemical, who then needed a valve for their mixing equipment for their high viscosity sealant. They manage to find the valve from Haskell Supplies, and then the supply chain is completed, relaying all the way back to Oberfranken.
2. Please explain what outsourcing is and how it differs from offshoring. Identify three specific challenges associated with outsourcing from the case that Viro has to manage
Outsourcing is contracting a certain process of a business/product to a third party. In this case, Viro outsources parts of its automobile
I S 300
Viro Automotive Company Case
1. Describe the supply chain of Viro Automotive Company
Viro Automotive Company’s supply chain is currently based on the pull system model; they manufacture and distribute the cars only after they have been ordered by their customers, rather than by forecasting demand (push system). After having received the orders from their customers, Viro then sends the orders to their own suppliers, or members of the supply chain. In this case, the main client is the President of the United States whom put in an order for his daughter, and expects the first car off of the assembly line. From receiving the order from the customer to handing over the car are all parts of the downstream portion of the supply chain. The upstream portion of the supply chain in this case, however, begins with the speed controllers. The speed controllers are made from Viro’s contract supplier, Oberfranken (tier 1 supplier). Oberfranken, a German based company, and they originally source their voltage regulators from Malaysia. However, because the factory was destroyed, Oberfranken had to find a new supplier for their voltage regulators, and turned to Zamboni, a tier 2 supplier. The new voltage regulators, unfortunately, used a higher voltage that needed to be recalibrated, so they outsourced to Yamagata, a tier 3 supplier in Japan. Yamagata then needed sealant for the circuits, so they outsourced to Consolidated Chemical, who then needed a valve for their mixing equipment for their high viscosity sealant. They manage to find the valve from Haskell Supplies, and then the supply chain is completed, relaying all the way back to Oberfranken.
2. Please explain what outsourcing is and how it differs from offshoring. Identify three specific challenges associated with outsourcing from the case that Viro has to manage
Outsourcing is contracting a certain process of a business/product to a third party. In this case, Viro outsources parts of its automobile