Problem Solution

Inventory management is crucial to the bottom line of an organization. The purpose of this paper is to explore issues and opportunities of supply chain management for the Kuiper Leda Inc., a supplier of electrical components for automotive manufacturers.

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Gap Analysis: Kuiper Leda

Introduction

In operation for 10 years, Kuiper Leda Inc., is an organization that specializes in the manufacturing of Electronic Control Units (ECUs).and recently, Radio Frequency Identification Devices (RFID). Kuiper's client base is comprised of small automobile manufacturers and Original Equipment Manufacturers (OEM) for the automotive industry. The Kuiper's organization has built its reputation on high quality products and delivery responsiveness.

The purpose of this paper is to identify the challenges faced by the Kuiper's leaders ability manage cost effectively manage the inventory for current productions, increased customer demand and new products. The leaders must consider manpower, cost associated with warehousing, outsourcing versus the use of eBusiness portals as well as distribution.

This task includes a) identifying the issues created by new and changing demands for products, b) identifying the stake holders affected by the inventory management, c) defining the gap between the current state and the end state vision and d) developing a SMART (Specific, Measurable, Attainable, Realistic, Timely) approach for the end state vision.

Situation Analysis

Issue and Opportunity Identification

Economies of scale have been created for the leadership team at Kuiper Leda due to increased demand for the ECUs by and existing client, Midland Motors. Midland a supplier of power trains, has determined the inventory needs for their company to be 250,000 ECUs and 35,000 RFID. This demand provides an opportunity for supply chain collaboration. "A supply chain collaboration connects trading partners so intimately that their respective supply chains are indistinguishable." (Cottrill, 2002, p. 16). Kuiper leaders have the opportunity to solidify the relationship with Midland by developing a web-based inventory management