Taylor Guitars
Taylor Guitars primarily competes using what type of strategy?
Differentiation
What type of wood is the most scarce, but critical to Taylor's guitar production?
Ebony
Name one key characteristic of blockchain
Decentralized, permanent, traceable or transparent
Name one major challenge facing Taylor's current supply chain
Limited supply of ebony, lack of traceability/transparency, illegal logging risk, sustainability concerns
Name one musician known for playing Taylor Guitars
Taylor Swift, Paul McCartney, Jason Mraz, Neil Young, etc.
Name one of Taylor Guitars' competitive advantages
Legally protected technology, proprietary manufacturing processes, vertical integration, sustainability leadership, strong brand reputation, artist partnerships
What non-profit organization initiated the blockchain pilot project?
U.S. Endowment for Forestry and Communities
Explain blockchain in your own words
A decentralized digital ledger that securely records verified transactions
Name one challenge Taylor would face when implementing blockchain
Supplier buy-in, implementation complexity, financial uncertainty, data integrity etc
How many types of wood species does Taylor source?
20+
Where are Taylor's two manufacturing facilities located?
El Cajon, California and Tecate, Mexico
In which country does Taylor source most of its ebony?
Cameroon
Name two benefits of blockchain for supply chains
Traceability, transparency, visibility, trust
Name two benefits Taylor hopes to achieve by implementing blockchain in its supply chain
Improved supply chain traceability and visibility / better regulatory compliance / verification of legal and ethical sourcing / increased consumer trust / faster and more reliable audits
What U.S. act creates legal risk for companies importing illegally sourced wood?
Lacey Act
What was Taylor's revenue in 2018?
$100M
What type of ebony did Bob Taylor promote to help reduce waste and encourage more sustainable harvesting?
Striped ebony
Put these steps of blockchain in the correct order: Verification, Distributed Storage, Transaction, Block Creation
Transaction, Verification, Block Creation, Distributed Storage
Why is it difficult for Taylor to trace the origin of every piece of wood today?
Complex multi-tier supply chain / paper-based records / limited end-to-end visibility
What is the name of the ebony sawmill Taylor partially owns in Cameroon?
Crelicam
Why did Taylor purchase Crelicam?
To improve control over ebony sourcing, reduce waste, promote sustainable forestry, and secure a long-term supply of ebony
What was the overall conclusion/findings of the blockchain pilot project?
Demonstrated that blockchain was technically feasible and could successfully improve supply chain traceability and transparency, but widespread implementation would require greater supplier participation and further development
Would you recommend Taylor’s Guitars to implement blockchain? Why or why not? Give two reasons for your argument
Yes: Improves end-to-end traceability and transparency, helps comply with the Lacey Act etc
No: Supplier buy-in is uncertain, integration complexity etc
What are two ways Taylor could encourage suppliers to adopt blockchain?
Longer contracts, preferred supplier status, technical support, education, RFID/QR technology, training etc
What competitor paid a $300,000 penalty in 2012 for importing illegally acquired wood from Madagascar and India?
Gibson