This case study illustrates the management of external suppliers at an OEM and associated risks. The case is unique in that it takes place in the bowels of a global supply chain and is presented from the point of view of a Tier I supplier. Prior to reading the case, be sure to familiarize yourself with the definition of an OEM, and the meaning of Tier I, II, and III suppliers.
Working in teams, provide one response per team to each of the following questions. Be sure to follow APA guidelines included on the course Blackboard site.
Address the following questions (in at least one case, find an article that supports your statements):
1. List two reasons why Red Star was a good supplier.
2. List two reasons why Red Star was not a good supplier.
3. What were two key “issues” with the Red Star-Ashmark relationship that led to the situation presented in the case? For each issue cited, what “red flag” should have caused concern at Ashmark.
4. Discuss either an advantage or disadvantage of Ashmark using multiple suppliers for the low volume parts made by Red Star.