ABC Satellites was founded on a patent for an omnidirectional satellite antenna with no moving parts. The company raised a round of seed funding to support the startup of engineering and R&D departments. After building the first unit, the company proved the patent's validity and market interest. The organization's leaders opened subsequent fundraising rounds to support the stand-up of manufacturing, logistics, warehousing, and supply chain departments. Engineering priorities have traditionally led ABC Satellites. Because of this, procurement analysts have had little leverage with suppliers, and supply chain analysts have ordered inventory in response to engineering and R&D changes and priorities instead of demand forecasts. The CEO has opened another financing round to support the pivot from startup to integrated organization. The current state details of the organization are represented below:
• High on-hand inventory of some parts but not enough inventory of others.
• One supplier that produces two essential parts has continuously failed to provide the promised quantities to support production.
• To mitigate cost, ~20% of the required parts are procured out of China.
• The logistics manager responsible for inbound transportation has reported up to 30% tariffs for several parts procured from China. This cost should have been considered during the procurement process.
• The bullwhip in inbound inventory and quickly pivoting engineering priorities have resulted in frequent and drastic changes to production.
• There are currently two senior directors. One is responsible for production, and one is responsible for the supply chain. There is no VP that ties the two divisions to a single strategy. This frequently results in competing priorities and strategies between the two leaders.
• The warehouse manager has been losing track of inventory based on the delivery and pullback of that inventory in response to changes in production.
• The Director of Production uses agile to prioritize and organize production, but the supervisors responsible for execution do not manage labor or actual production with those concepts.
• No agile or lean methodology is used in the warehouse or transportation areas.
• There is no data management system in the warehouse or transportation areas, and no key performance indicators are produced and used.
• ABC Satellites has a PO for 1,500 satellites but has had difficulty producing them due to supply chain issues.
Your organization has grown exponentially. Using a dated ERP system, you've historically manually managed the company's operations functions (receive, stow, pick, pack). As the Senior Supply Chain and Logistics Leader, write a brief perspective of your analysis on the following points:
a. What recommendations do you make for the integration of data management solutions?