Airport Security Services Case
1. What issues should Butler evaluate in his assessment of transportation risks?
Butler should evaluate all of the customer response that he can get his hands on. Other companies that have used these 3 suppliers are probably the best way to identify risk within these companies. Another assessment that he should consider is the crime rate in each area the suppliers are located. This would try to side step any loss from theft, which is a huge problem when using an overseas supplier. Further I would recommend that Butler tour each facility to check on the quality of equipment and to test traffic patterns from the facility to the airport that will be used to transfer cargo.
2. Analyze each supplier option that Butler is considering. What specific …show more content…
They have made world-class electronics already and seem to have an established transportation plan if they can guarantee no delays to the airport even with traffic. In a situation when manufacturing high end electronics, I think you have to look to industry leaders. Apple has always had a more quality over quantity approach. The small factory capacity could be offset by pushing back a launch date to build stock in a secure location here in the US. Because Finland is also the cheaper option to use it would offset some of these costs.
4. What types of transportation security issues and requirements will confront TGU if they off-shore manufacturing?
This is a very broad question, most of which has already been covered. But other issues would include a long lead time from manufacture to stores, high inventory costs, and additional staff costs just to communicate and monitor offshore supply chain activity. All of this can increase costs substantially, especially up front. In the long term you would start to see increased profits due to the experience of an established manufacture by having quality built parts. Also you would not have to pay for a warehouse and workforce to start the
Butler should evaluate all of the customer response that he can get his hands on. Other companies that have used these 3 suppliers are probably the best way to identify risk within these companies. Another assessment that he should consider is the crime rate in each area the suppliers are located. This would try to side step any loss from theft, which is a huge problem when using an overseas supplier. Further I would recommend that Butler tour each facility to check on the quality of equipment and to test traffic patterns from the facility to the airport that will be used to transfer cargo.
2. Analyze each supplier option that Butler is considering. What specific …show more content…
They have made world-class electronics already and seem to have an established transportation plan if they can guarantee no delays to the airport even with traffic. In a situation when manufacturing high end electronics, I think you have to look to industry leaders. Apple has always had a more quality over quantity approach. The small factory capacity could be offset by pushing back a launch date to build stock in a secure location here in the US. Because Finland is also the cheaper option to use it would offset some of these costs.
4. What types of transportation security issues and requirements will confront TGU if they off-shore manufacturing?
This is a very broad question, most of which has already been covered. But other issues would include a long lead time from manufacture to stores, high inventory costs, and additional staff costs just to communicate and monitor offshore supply chain activity. All of this can increase costs substantially, especially up front. In the long term you would start to see increased profits due to the experience of an established manufacture by having quality built parts. Also you would not have to pay for a warehouse and workforce to start the