The Alberta based Blue Banff Technologies (BBT) is a very large solar power player and sells solutions to large end consumers who are looking to diversify their energy supply. BBT has a strong R&D lab with a record number of patents in new innovative materials (labeled SRF22 series) for solar panels in recent years. Various industries and energy suppliers are important clients for BBT which has an assembly unit in Oshawa, Ontario, Canada.

In the meanwhile, BBT has watched reports about the Government of India committing to clean energy. India has a non-fossil based installed energy capacity of 159.95 GW which is 41.4% of the total installed electricity capacity. Foreign direct investment (FDI) of up to 100% is allowed in the renewable energy industry under the automatic route, with no prior government approval needed. India has been ranked amongst top 5 countries in the world, and the best among the G20 countries, based on its Climate Change performance. In recent times, India jumped 2 spots higher, and is now ranked 8th as per the latest Climate Change Performance Index (CCPI).

While it is possible to manufacture various parts/components in Canada (BBT has done so already), BBT wants to diversify its supply chain and is toying with India and China as potential sources (and also potentially look at forward integration). The caveat - solar farms require large tracts of land. This can get mired in legalities.

Q1. What are the disadvantages of global procurement for a firm such as Blue Banff Technologies? Give specific supports for your answer. What can be a potential strategy angle of global procurement? Which key functions form the value chain in the case of BBT?

Answer rating: 100% (QA)

Disadvantages of global procurement for Blue Banff Technologies BBT include 1 Supply chain disruptions Relying on suppliers from different countries c... View the full answer