The case describes the issues related to the supply chain of quality and how they develop in the context of multi-level global supply chain. The case related to the global automotive supply chain multilevel was one of the largest global automotive original equipment manufacturers (OEM), its Tier 1 supplier, who is also a U.S. global corporations, and level 2, level 3 and level 4 suppliers, based in India. From an engineering support Automek, in many parts of the Agile developed successfully for the OEM in the past. Based on this experience with the company, Automek customer placed an order with Agile for a new product (actuator assembly). In the development of this product with little support Automek, Agile was concerned about his lack of knowledge about the suppliers to drive the assembly of components and critical requirements. To allay their fears, Automek promised to support Agile (a) locate the major global supplier of specialized components, and (b) assessment and verification of critical suppliers based in India on behalf of Agile. Agile then invested in a production line and developed a drive. When did the delivery, OEM reported many quality problems that were traced tiered suppliers. Along with the quality of the questions and suggestions, questions of liability in the event of further review by experienced members of the OEM supply chain. Agile felt that with Automek chosen or approved vendors, as well as Agile does not know anything about the product that Automek must take responsibility quality problems arising from the supplier base. To complicate matters, some members of the multi-level supply chain were not willing to invest time and effort in the application of more efficient production processes and management practices at the request Automek. "Hide
by Dhruv Dar, Sanjay Kumar, Vijay Aggarwal Source: Richard Ivey School of Business Foundation 16 pages. Publication Date: July 18, 2012. Prod. #: W12056-PDF-ENG
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