PROBLEM SOLUTION: KUIPER LEDA

Problem Solution: Kuiper Leda



University of Phoenix

Problem Solution: Kuiper Leda

Introduction

Organizations of today understand the need for efficient supply chain management (SCM) to gain an advantage in this highly competitive business environment. In order to create an effective SCM system, an understanding of the various interactions between suppliers, manufacturers, distributors, and consumers is needed. Furthermore, these organizations/entities must work together to establish a committed contractual relationship. Ultimately, doing so would provide each entity opportunities for success and increase the shareholders' wealth.

This paper will attempt to educate the readers on the importance of supply chain management. This paper will identify some of the SCM practices or strategies organizations use, specifically those used by Kuiper Leda (Kuiper), the subject of the case study. Moreover, this paper will provide recommendations on how to further improve Kuiper's supply chain which will help reduce costs, minimize wastes, and maximize value.

Situation Analysis

Issue and Opportunity Identification

The growth of Kuiper Leda shows potential for great success for the future of the company. However, the company must adapt to the transformation in order to continue producing quality devices, researching advancement in technology to improve products or create additions to the product line, and create quality products. The Midland Motors has a large account with KLI. The large annual order placed by the company demands a minimum delivery of both ECUs and RFIDs on a monthly basis.

The changes of technology and the expectations of today's devices to maintain the competitive edge with industrial competitors is the endorsing prospect of KLI. The time frame for obsolete technology is becoming smaller and smaller due to the continual change and discoveries of technology. However, Kuiper Leda is continually seeking new development to improve the company's product line. The demand for Kuiper Leda ECUs and RFIDs have increased significantly due to the dependant demand associated with new model automobiles. The new models of Midland Motors must meet the expectations of the customers, however the demand of Kuiper Leda products with the company is dependant upon the response of the customer for the automobile. “The dependant demand is the demand for a product or service caused by the demand for other products or services,” (Chase & Jacobs, 2006, p. 512). Kuiper Leda can use this opportunity to continue the company's established excellent customer service and quality products to customers to expand business. The association with maintaining a reputable relationship with a key supplier can open the doors to further expansion to large companies.

The increased supply volume is another issue that must be addressed. Handling the orders, purchasing enough raw materials to fit the order size, creating a daily set production goal, and storing items are all issues that must be dealt with. The demand for Kuiper Leda products has been viewed as fluctuating. While the past two years product demands have increased, the need for the company to maintain a steady supply of material and establish safety socks can be beneficial. “Safety stocks can be defined as the amount of inventory carried ...