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BOSCH CASE STUDY

1. What is the function of pallet pool and its limitations?
Using a pallet pool enables you to obtain supply chain efficiency by improving handling processes and reducing
storage costs. Reusable pallets are durable and available worldwide in conveniently located service centers
close to you at a time that suits you. Pallet pooling basically means renting out or leasing pallets from a shared
pool. Costs are reduced, as you dont have to buy new pallets or sustain your own pallet fleet.
The softwood pallet also does not fare well when not housed properly, as precipitation can induce rot, which can
weaken the wood and cause damage to whatever youre shipping. Also, think of the trees! The softwood pallet
is perhaps the least green pallet on the market, as most softwood pallets are simply taken apart and tossed after a
single trip.
2. Describe the green aspects of the Bosch packaging requirement.
Green packaging is not just about reducing the amount of packaging but takes package design, processing,
disposal conditions and the entire product lifecycle into consideration. Some of aspects of Boschs green
packaging include:

Avoidance of packaging (as much as possible). The packaging must not be larger or more elaborate than
essential to protect the goods.
Padding material should be kept to a minimum.
Where disposable and returnable packaging is used, recyclable packing materials must be used and
identified according to the specifications of the waste management industry.
Use of single-type component materials. Composite Materials are not allowed.
Where disposable and returnable packaging is equal in economic and qualitative terms, returnable
packaging shall be preferred.
Returnable packaging (e.g. Euro pallets, Euro box pallets, VDA "KLT" [small load carriers]) that is
capable of pooling (used through multiple processes and partners) is to be preferred ahead of returnable
packaging without such capability.
Returnable packaging should correspond to standard sizes. Special design and sizes should only be
defined as exception in case of specific/ extraordinary requirements of the material to delivered.
Returnable packaging must be designed to be cleaned, emptied and drained easily.

3. What are the advantages and disadvantages of standards in outbound and inbound logistics?
Advantages of inbound logistics

Improved on-time deliveries

Less handling and damage, efficient receiving
Proactive notification of disruptions
Administrative efficiency
Increased customer satisfaction

Disadvantages

Could be expensive if too much inventory is held.

Advantages of outbound logistics

Cost optimization in outbound warehouse

Increase in delivery performance
Increase in process stability and process reliability
Reduction in order lead times
Ensuring goods traceability
Optimized processes+

4. Explain the lean principles of JIT and JIS deliveries. What are problems of suppliers to fulfill
these requirements?
JUST IN TIME
A supply chain management system designed to reduce carrying costs to a minimum. A firm only orders what it
expects for its immediate needs; therefore, it keeps a low inventory. For example, if a retailer believes it will sell
1,000 widgets in a week, it orders precisely 1,000 widgets from its manufacturer. JIT systems require that the
retailer at the end of the supply chain can accurately predict demand for its products. They also require that each
stage of the supply chain knows exactly how much time it takes to fill an order when it is made. The automotive
industry and budget retailers commonly use JIT systems.
JUST IN SEQUENCE
When goods are delivered just-in-sequence (JIS), the supplier brings them to the recipient at a particular time
and in a pre-determined sequence. This type of supply system is used particularly in the automotive industry. An
example is steering wheels that are delivered to the assembly line in the same sequence in which they are to be
installed.
One of the most common problem that suppliers face is the lack of real time information. If information is not
delivered on time then the whole process is delayed which results in customer dissatisfaction. Another problem
is fluctuation in order quantities which may result in supplier holding too much inventory in case of decline in
consumer demand and vice versa.
5. Describe Bosch Relationship Controlling.
Bosch uses Electronic Data Interchange to reduce inefficiency in supply chain and encourages its partners to do
so. The following procurement control concepts are generally in use:
-

Classical delivery call procedure with releases (Release Process)

Vendor Managed Inventory (VMI) or delivery control management (DCM)
Kanban

Within the framework of the implementation of the Bosch Production system (BPS) BOSCH strives to form a
lean supply chain from the customer to the supplier. The control concept applied for the respective contracted
product is decided by BOSCH. The procurement control concepts KANBAN, DCM and VMI, are supported by
a web based Inventory Collaboration Tool provided by the company Supply On.

6. Why is the process of invoicing not mentioned in the Bosch Supplier Manual?

The Portuguese branch of Bosch needed a better method of responding to customers requesting invoice
clarification on products purchased through large distribution chains; currently, BSH used a manual process was
time-consuming and error prone. BSH wanted to automate this clarification note process, improving the
companys cash flow and reducing overhead so opted for custom-built, automated system.