Problem Solution: Kuiper Leda
The ability to manage supply chains effectively is a key component of corporate success. Adopting a supply chain management strategy (inventory strategy) that works to minimize costs, enhance quality and efficiency of products and services rendered, and maintain sufficient levels of inventory while reducing associated carrying costs is ideal for all businesses. Achieving such a goal, however, is quite challenging and most businesses adopt inventory strategies that best enable them to fulfill their most primary needs (e.g. reducing inventory costs and delivering high-quality products). Supply chain management relates to “the management and coordination of a products supply chain for the purpose of increasing efficiency and profitability” (Investopedia, 2008). In order to deliver quality products to customers in a timely manner while decreasing operating costs, businesses must have a sound understanding of supply chain management (SCM) and all that it entails.
“Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed)” (Search CIO, 2006)
Many businesses have difficulty realizing enough operating capacity to manufacture all their products in-house while attempting to minimize operating costs including inventory, labor, and other fixed costs. To accommodate for their capacity inefficiencies and fulfill costs objectives, businesses often rely on outsourcing production to global (offshore) suppliers.
Kuiper recently entered into another product line, Radio Frequency Identification Devices (RDIF’s). RDIF is technology among retail stores for controlling inventory costs and for reducing the costs of checking out customers. RDIF tags are specially coded cloth or plastic that sends radio signals to receiving antennas that can be far away. Currently, Kuiper is having issues with maintaining inventory with an order larger than the usual order and limited resources. In this analysis, there will be a few options discussed on where Kuiper stands in the organization now and how Kuiper is going to correct issues to get to their end state vision and take care of those large unexpected orders.
The following will provide an all-encompassing solution for Kuiper Leda.
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
Scott and Westbrook (1991) and New and Payne (1995) describe supply chain management as the chain linking each element of the manufacturing and supply process from raw materials through to the end user, encompassing several organizational boundaries.
Outsourcing occurs when products or services are obtained by an outside supplier (Vonderembse & White, 2013). Companies may decide to outsource if it can be obtained less expensively due to specialization or the other company may have proprietary technology that gives them a competitive advantage (Vonderembse & White, 2013). This paper will analyze trade-offs for productivity improvements, discuss both the advantages and disadvantages of global sourcing versus producing in the United States, recommend a low labor cost country based on inputs, trade-offs and global advantages and give an example of a product of the specific country.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
The current trends in emerging markets have led companies to centralize production of imperative product parts. Although outsourcing may have been beneficial in the past, bring production “close to home,” allows companies to have more control over the production process. More control over the processes translates to more control over the product. Customers demand higher quality at a lower price, so companies have to do whatever is necessary to compete.
Rao, K., and Young, R. R. (1994) Global supply chains: Factors influencing outsourcing of logistics functions. International journal of physical distribution and logistics management. Vol. 24. No. 6.
Every firm has to make important decisions regarding the production process of a product. Different firms have distinctive production strategies and the main goal is to maximize efficiency as well as financial growth. One important decision that every firm needs to make is to either outsource or insource the production of a product, or parts of a product. Outsourcing and insourcing are techniques of dispersing work among alternative departments or companies for strategic reasons.
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
It is suggested for any organization to review, reassess any existing supply chain management or any delivery techniques, before developing a new supply chain method so that any exposure to high risk of failure is reduced. Somerset as a company taken advantage of outsourcing and transferred it product manufacturing to China leveraging low cost labor and raw material. The labor cost and other cheap material reduce Somerset overhead cost, but there is always the risk of not delivering product on time due to the foreign country political climate, change in tax and tariff and local
Harley-Davidson (H-D) and other companies that have many manufacturing plants or production units and various dealerships may consider implementing RFID technology as a means of increasing the efficiency of all parts of its supply chain. An abstract from Columbia Electronic Encyclopedia describes Radio-frequency identification (RFID), as a technology that uses radio waves to transmit data and uniquely identify an animal, person or thing. This case study looks at the potential use of RFID technology to replace bar codes and scanners in Harley-Davidson supply chain. It indentifies some pros and cons of its implementation and addresses the question – What are some of the issues Harley-Davidson will face in comparison with those experienced by other companies such as Wall-Mart when they tried to implement RFID in their supply chains. Finally it will present a timetable for the adoption of RFID technology by Harley-Davidson in its supply chain.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Inventory management is a method through which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle of the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seen more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company; effective and efficient inventory management is of critical importance.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
Supply chain would not be efficient and receptive if inventory wasn't been able properly. Inventory management is definitely a way of carrying materials from raw components to the final customer, thus managing the movements and flow throughout the supply chain. Without inventory managing, supply chain movement would certainly not in existent. Every method must be managed in line with the fulfillment in the ultimate priority that is the fact that consumer pleasure. Supply chain carries investment to fulfill uncertainties and mismatch regarding demand and supply. Smart management of the supply chain is gained by integrating the strategies business processes of the partners within a supply chain in order to make certain the flow and storage can be coordinated as this can be completed within the functional area of products on hand management as well. In summarize, effective supply chain supervision is performed by having a good inventory management. The two ought to end up being coordinated with each various other especially in monitoring the flow of inventory within just the supply chain. Any mistakes with the inventory guidelines would consistently influence the supply chain that's why investment management and supply chain administration processes should be included that may result to the success of a company if enforced successfully and effectively. Also, it's significant that managers should consider to take actions in lowering the quantity of inventory required in purchase to decrease cost expected thus raise the responsiveness in the supply chain. If inventory can be managed successfully then presently there would most likely a good management of supply chain as well. They're connected with each other with one another and if one of these doesn't fit with the other, after that it'd certainly lead to the