Fox Routers Electronics, Inc.

2369 Words10 Pages
Problem Statement Due to the financial instability of the current supplier, Fox Routers Electronics needs to select a new supplier from India, China and Taiwan in order to guarantee the continuous production of the Model 301 Frontier IP Router. In addition, the marketing department of Fox Routers Electronics has observed three potential markets (South Africa; Victoria, Australia; Brazil, South America) for the new product. Also, the warehouse location in the new market should be decided. Situation analysis Fox Routers Electronics is a global communications company with the latest technological products and has wide range customers. Fox Router is an ODM which responsible for design products in-house and outsource the manufacturing of the products. The suppliers provide the components that go into the final assembly of the products. CMs do the final assembly then ship the products to Fox Router locations. The only Contract Manufacturer which associated with the new market locates in Kunshan, China that can provides on time delivery to warehouse worldwide while other final assembly Contract Manufacturers ship the products to other markets. Considering the time reasons of the new product launch, Fox Router will continue use the current final assembly CM which located in Kunshan, China. However, the main supplier for the Model 301’s Power Supply Unit is suffering financial difficulty and no longer meets the supplier qualifications to keep its tier 2 status. After conduct some research, Fox Router wants to select a new supplier among three potential qualified suppliers (they are Global India, China Worldwide and Taiwan Supply respectively) which quoted the PSU part formerly and have sound financial status. In addition, the marketing department is seeking a new market selected from three potential markets which are South Africa, Victoria, Australia and Brazil, South

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