Kuiper Leda Supply Chain Defense

1235 words - 5 pages

Kuiper Leda Inc. is an electronic components manufacturer that operates in Novamania. The company specializes in the production of Electronic Control Units and sensors used in the automotive industry. The company has existed for 10 years and supplies its products to automobile manufacturers and Original Equipment Manufacturers (OEM"S). Kuiper Leda wants to become the leader in the electronics components industry. The company knows that to become a supply chain leader, it must have efficient processes, people, discipline, leadership, and technology. Companies trust suppliers to deliver the products necessary to manufacture their products. Companies must maintain their production schedules to ensure the commitments made to their customers are met.Kuiper Leda has introduced Radio Frequency Identification Devices (RFID'S) to its product line to expand into the global market. Midland Motors, an American manufacture, has placed a large order with Kuiper Leda. The company must identify its inventory and supply chain management style and the measures necessary to ensure that the order from Midland Motors and the demand from other clients is met.Kuiper Leda Supply Chain Defense"A truly integrated supply chain does more than reduce costs. It also creates value -- for the company, its supply chain partners, and its shareholders. The foundation of integration is information sharing. Coordination is the next dimension. Then come the organizational linkages that enable sharing of risks, costs, and gains. The industry leaders have made one thing clear: The payoffs from successful supply chain integration can be handsome indeed." (Lee, 2000) Companies must have a process to buy new materials from suppliers, manufacture its products and a logistics plan to deliver the products to its clientele without any interruptions. Interruptions in this process can force production schedules to become out of sequence and force an insufficient amount of finished products to be available for the company to transport to its vendors. Fluctuations in inventory levels must also be addressed and planned for. Kuiper Leda has received a large order from Midland Motors for ECUs. The order is larger than the company's capacity. Midland Motors has placed an annual order of 250,000 ECU's and 35,000 RFID's. The order has a minimum quantity of both products to be delivered each month. Kuiper Leda has decided to maintain its current supply chain process to ensure complete, efficient, and acceptable standards for Midland Motors' request.Kuiper Leda has a six step process to address all areas of its supply chain. The six step process covers all areas to manage the process and to keep up with the changes in demand and sound lead times. Kuiper Leda begins with its production phase which has a clear direction of revenues, closing inventories, and capacity utilization targets for its products over the entire year. The first step allows the company to calculate and determine the average production...

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