Agile Electric Case Study

AgileElectric Case Study


AgileElectric Case Study


TheAgile Electric Case gives an account of the development of aninternational supply chain relating to OEM the biggest carmanufacturer in the world. Agile Electric had come up with variousparts for OEM with the help of technical teams from Automek. Agilehad since gained reputation for non-defective merchandise. Based onthis reputation, Automek authorized Agile to assemble an actuator.However, this time, Automek withdrew its technical support but sinceAgile lacked the knowledge about suppliers, Automek located andaudited potential suppliers. Once this was achieved, Agile investedin developing the new product, but as soon as the product wassupplied to OEM, the company reported defects.


Thedefects could be traced down to the supply chain. It was the opinionof the Agile Electric that Automek had full control of the selectionand approval of the suppliers. Therefore, Automek should be heldaccountable.


OEMis one of the world’s largest automotive manufacturers and is tier1 in the supply chain. Automek is tier 2 and is an electroniccomponent assembly that supplies parts to OEM. Agile on the otherhand is tier 3 and has supplied parts to Automek in the past. ECPL istier 4 and is mandated with PCB assembly that is to be supplied toAgile. Lastly, is the BIPL, which is the manufacturer of PCB and asupplier to ECPL.


IfOEM recalls its cars due to defects, it would pass losses incurred toAutomek. Automek has option of passing the charges to its supplychain or investing its resources to improve the processes in thesupply chain. However, ECPL and BIPL were unwilling to invest theirtime and effort in improvement processes. Alternatively, Automek canorder from its North American supplier. However, their costs arehigher than that of Agile Electric.


Thecase presents evidence of many problems associated with long supplychains. I believe that suppliers need to collaborate and trust oneanother when issues occur. I would suggest that in order to minimizefuture occurrences, the supply chain should be trimmed down. Besides,Automek should transfer all duties to Agile and continue offeringthem technical and engineering support.