Collabra Inc.

Collabra is a smart phone electronics manufacturer, competing successfully with industry leaders like Samsung and Apple. Collabra has established a world class supply chain, that has responded effectively to rapid market and technology changes, and consumer expectations.

Just like Samsung and Apple, Collabra manufactures their smart phone in low cost Asian countries, such as China and Vietnam. The phones are then shipped in bulk by air freight to European and American markets. The phones are then packaged and software loaded locally at different countries.

Collabra has just launched a new line of business in disposable batteries (e.g. the AA and AAA alkaline batteries). Disposable batteries are used in almost all portable consumer electronics. The global alkaline battery market is huge. The market is projected to grow from $7.76 billion in 2021 to $10.86 billion in 2028 at a CAGR of 4.9% in forecast period 2021-2028.

The company distribute the batteries to mass market retailers such as Walmart using their established smart phone supply chain network, somehow, the executives thought, the smart phone and batteries are normally sold in the same retail locations.

At their recent quarterly business review meeting, the VP of the disposable battery division reports huge losses, high costs, and unable to increase prices due to intense competition.

Questions:

1. Explain why the disposable batteries division is not compatible with the smart phone supply chain system.
2. How would you re-design the disposable batteries supply chain so that it will satisfy the requirements for best customer service, short lead time and return the business to profitability? (10 marks)
3. Identify the push-pull boundary of the smart phone supply chain. Where will the push-pull boundary in your re-designed disposable batteries supply chain be? (10 marks)