Kuiper Leda Supply Chain Defense Essay

2346 words - 9 pages

Running head: KUIPER LEDA SUPPLY CHAIN DEFENSEKuiper Leda Supply Chain DefenseKatrina BaileyUniversity of PhoenixKuiper Leda Supply Chain DefenseDefined as "maximizing added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market", supply chain management (SCM) has become an essential component of successfully competing on both the national and global scale, especially amongst manufacturing companies (Sovereign, 2008). In establishing a competitive edge, manufacturing companies must deliver their products at a competitive price and at a higher quality than others in their field. Companies must focus on their core competencies while outsourcing those processes and tasks that do not directly contribute to the overall mission of the organization. Furthermore, effective SCM allows businesses to not only realize productivity advantages, but also maximize added value and reduce costs, allowing for innovational additions to both the product and the process. According to one author, "Productivity advantage gives a lower cost profile and the value advantage gives the product or offering a differential 'plus' over competitive offerings." (Sovereign, 2008)At Kuiper Leda Inc., an electronic component manufacturer located in the Republic of Novamia, an unexpected windfall in the form of an order from Midland Motors for 250,000 electronic control units (ECU) and 35,000 radio frequency identification tag systems (RFID), has led the company to reexamine the efficiency of its current supply chain and look for ways in which it can streamline its operations to not only meet the current demand but also the demand for future orders. This paper will develop a plan that optimizes Kuiper Leda's supply chain, while taking into consideration every aspect of the supply chain process. It will also identify metrics that can assess the overall performance of the supply chain process and help to identify those areas that are not performing efficiently. If the company is to take advantage of its opportunities for expansion and growth, Kuiper Leda must learn to maximize its strengths and minimize its weaknesses, while continuing to focus on its core competencies. A combination of in-house expertise and well-placed outsourcing will help the company to realize its growth potential while maintaining its reputation for excellence.Kuiper Leda Supply Chain DefenseAs a result of its strong technology base and an unforecasted demand for power train assemblies from Midland Motors by an automobile manufacturer, Kuiper Leda is now on the receiving end of an unprecedented order for 250,000 ECUs and 35,000 RFID tags from Midland Motors. This demand is well beyond their current plant capacity, and their current policy of material requirements planning (MRP) does not allow for these types of random variations. Relying on forecasts and orders from the distribution system, their current supply chain procedures will not...

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