After studying this case study, we end up in the next key points: Orange Ltd is a TV producer and needs a strategy in order to maintain its market share, given that the MNCs may work as threaten due to their global financial strength and network. As the TV market has been very volatile and the customers keep on choosing what to buy considering of price value and special features of the products, Orange Ltd has to overcome the challenge of bringing new products in a very short time to the market at attractively competitive prices. The process involved in the cabinet production, which is the component responsible for the delay of the new product release is now taking 18 months. The company’s goal is to reduce this time by 4-5 months. According to the case study, the 2 different options involving process reengineering and location of component sources were considered as follows; either finished moulds sourcing or base moulds sourcing and finishing thereafter.
In the first option, where the company imports ready moulds to produce the plastic cabinets, it has to consider of many parameters such as reducing the lead time, the quality of the product that is outsourced, and of course the reliability with the supplier, so that they save money in the end. In order to make this reality, Orange Ltd will have to make extended research on the market and find the appropriate supplier of moulds that produces them up to their final form. In the second option, where the company imports semi-finished moulds in their base form and, as it has the equipment of building modes, Orange Ltd will have to take into consideration the same parameters as for the first option, including the extra work the mould would want to be finished and ready for use.
For both options, it is crucial for Orange Ltd to coordinate with other companies that will act as suppliers, in order to reduce the time among the release of new products. Different coordination modes between firms are required to synchronize interdependent activities, ensure visibility to match supply and demand, align actions and decision with the chain profitability, and acquire new capabilities from joint efforts. These modes help the participating members, which are here Orange Ltd and the supplier of moulds, to advance supply chain profitability by reducing lead times. In this specific case, it would be crucial for Orange Ltd to find suppliers with the appropriate know-how within the borders of India and sign a long-term contract (which means trust between the two parts), in order to minimize the transportation costs and of course not reduce the quality of the outsourced product, which here is the mould, either finished or not.
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Topic: Case Study: Orange Electronics Ltd.
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