Reference no: EM132253364

Integrating Techsoft’s New Vision Graphics Card into the Supply Chain Company Background Techsoft, a leading technology company specializing in graphics processing, has just developed a new version of their Vision graphics card. The card is 10% smaller than its predecessor and is breaking new ground in cost as it is projected to sell at half the price of their current card. The need for faster, more affordable graphics cards that can be networked to scale according to processing needs, has driven both the lower selling prices and the demand for processing higher than ever before. The issue Techsoft faces now is that its supply chain costs are now proportionally a much larger percentage of the overall graphics card selling price. Changing Landscape The technology industry evolves rapidly and each day an unsold graphics card or other piece of advanced hardware loses value as new chips and versions are researched, released and retired. Techsoft is an OEM and sells to other manufacturers and distributors. For the Vision graphics card in particular, all sales are included in other consumer and industrial products and not to be sold directly to consumers themselves. The challenge is with rapidly changing products in the market and intense competition, Techsoft has to compete on not only the functionality front, but cost as well. Due to this, its current supply chain cost is unacceptable when the cost of the card itself has been reduced by 50%. Techsoft expects innovation in all aspects of its business beyond just R&D. Therefore, Management has requested your team investigate ways to reduce the per card supply chain costs as much as possible.