United Arab Emirates University Faculty of Business and Economics (FBE) Supply Chain Management Application & Strategy CASE 1 : Supply chain challenges at Leapfrog SCML 460: Supply Chain Management Application & Strategy Context: Introduction ………………………………………………. page 3 Questions ………………………………………………. page 3 Conclusion ………………………………………………. page 5 References ……………………………………………… page 6 Introduction: Our case study is about “Supply Chain Challenges at LEAPFROG”.
The term supply chain conjures up images of product or supply moving from suppliers to manufacturers to distributors to retailers to customers along a chain(2). We recognize that we must have a small image about that company so, we start searching on internet to know the history of that company: The company was founded in 1995 by Michael Wood and Robert Lally. When Wood found no products on the market that could help his struggling son learn to read.
Since then, LeapFrog has developed a number of learning platforms with a library of software titles, covering subjects including phonics (the method of learn by hearing), reading, writing, and math for grade school children (2). So this company focuses on educational toys for babies and children. We have on this case study “Supply Chain Challenges at LEAPFROG” five question to deal with. Firstly we will answer and discuss the partners who are in upstream and who’s in the downstream, also we will talk about the first supplier and second supplier.
Secondly we will give information about the data they have in the production level of the LittleTouch LeapPads and from where they bring it. Thirdly we will talk about which part of production process is limited on the Capable Toys and how they respond to these challenges. Fourthly about the challenges on the material sourcing and how they resolve it. Finally about the logistics solution that they use on that time and what the strength, weakness of that solution. Questions: * First question Draw a map of the supply chain for leapfrog. Including the retailers, capable toys, and suppliers of key materials (such as tyvek).
Which supply chain partners are “upstream” of leapfrog? Which are downstream? Which partner are first tier suppliers? Second tier supplier? Answer: This is the map for the supply chain for the leapfrog company DownstreamUpstream Third Second First- tier supplier manufacture Distributer Retailerconsumer DuPont Co Printing firm Capable factory(LEAPFROG Factory) Bulk internet (end customer) (Tyvek) (Kmart, toys R us, Wal-Mart) Upstream activity (OR) firm
Activities or firms that are positioned earlier in the supply chain relative to some other activity or firm of interest Downstream activity (OR) firm Activities or firms that are positioned later in the supply chain relative to some other activity or firm of interest * As we can see that the map show every think that we need the upstream is the side of suppliers and the downstream is the side of distributer, retailer and customer. First-tier supplier The supplier that provides products or services directly to a firm. Second-tier supplier The supplier that provides products or services to a firm’s first-tier supplier(3). Second question is what data ultimately led to leapfrog’s decision to increase production levels of the little Touch LeapPads? Where did these data come from? How long after interpreting these data did leapfrog start talking with capable toys about increasing production levels? Days, weeks, month? Answer: Because they are facing a Christmas future. They check their store and they found that they had sold 360 of littleTouch LeapPads in the products introductory weekend. So this information goes on the new system then the software shows that there will be a huge demand on that period almost 700000 unit to meet projected holiday demand.
So they forecast the number of units for that period. These data come from four computer models. They are designed to weed out unusual explanation for sales spikes. Everything from discount and TV advertising to where be stores the product was displayed. I think it take days because they have direct contact with their supplier, because they allow to them to enter the sales database * Thirdly, what part of the production process limited output level at capable toys? How did capable respond to the challenge? Answer: The molds that make the plastic are critical part of the production process it’s called also the tools.
They had two set of tools running around the clock, and they got the ok from the leapfrog for a third set of tools in the last of August, and the approve for the fourth set was after when the third set was ready and that was in the mid-October. * Fourthly, what were some of the material sourcing challenges facing Leapfrog and Capable toys? How did they resolve these problems? Answer: They had a hustle to find the specialized material and parts they need for the huge demand for those toys, they need for each toy a mini speaker, three microchips and brain. Also they found trouble on finding a supplier for touch-sensitive membranes.
However they also, have a problem to find a supplier for material clothlike paper (tyvek). They solve these problems by using staff tapped network of supplier to hunt down a second vendor, so they found the DuPont Co. for the (tyvek) but they also need something that would be drool resistant and still absorb ink. So they found a third party for that – a book – printing firm- in US. * Finally, what type of logistics solutions did Leapfrog use to get the toys to the stores on time? What are the strengths and weaknesses of these solutions? If it had been August rather than December, what other opinion might Leapfrog have used? Answer:
They solve the problem by using the air fright to respond for the shortages. The strength as we can see that they consider about the time & speed, so they will reduce orders delaying and lead time. On the other hand about the weaknesses, they almost lost their profit on air shipping because it costly and they will need to deal with 3PL to support them. Conclusion: As we can recognize from this case that the leapfrog have many challenges in different things like sourcing, production process, logistics and many other things. Also on our report by answering the question we discuss how they resolve their problem and analyze it.
We describe the supply chain map and discuss about how they process their information on their systems. On the other hand we talk about the production process and what challenges they had their and how they resolve that problems with their suppliers. Although we see the sourcing problem and the solutions for that, also we have a look in their logistics solution for their problem when they have a shortage. References: http://www. sbaer. uca. edu/publications/supply_chain_management/pdf/01. pdf http://en. wikipedia. org/wiki/LeapFrog_Enterprises http://ar. scribd. com/doc/34674743/Introduction-to-Operations-Supply-Chain-Management
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