Surviving Supply Chain Integration Strategies for Small Manufacturers (2000) / Chapter Skim
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9 Technology
9 Technology
Pages 72-88
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From page 72... ...
Successful companies distinguish themselves from their competitors by anticipating opportunities, selecting appropriate technologies, and using them for competitive advantage. Many SMEs, however, find gaps between customer supply chain requirements and their technological capabilities.
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From page 73... ...
By using the Internet as an integration tool, SMEs can · improve reaction to changing demands and markets · optimize resources throughout the supply chain · more efficiently source lower cost materials · achieve shorter lead times and better due-date performance Communications Although face-to-face contacts and the use of telephone, fax, and surface mail are still essential, they are no longer sufficient to ensure competitiveness. Effective communication requires additional capabilities, such as e-mail, electronic data transfer, and more.
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From page 74... ...
At a minimum, the basic capabilities should include electronic networks based on generally accepted data transmission protocols, such as email and file data transfer on the Internet, and private couriers, such as FedEx. No SME can expect to remain competitive without all of these.
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From page 75... ...
are not equal to customer demand. Integration of demand planning, order fulfillment, and capacity planning can enable reduced supply chain inventory levels, improve on-time delivery, and enable more rapid resource deployment to problem areas.
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From page 77... ...
There are many degrees of demand planning integration, ranging from manual sharing of information to integrated reporting of demand and electronic forecasting. As improved supply chain integration software and ERP solutions are introduced, the pressure on participants to embrace technological integration will increase.
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From page 78... ...
provide simplified direct access to supplier products and services; (4) reduce overhead costs for transaction processing; (5)
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From page 79... ...
Knowledge of HTML is no longer required. Web site service companies provide templates and instructions in layman's terms, and, for as little as $40 per year, the Web
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From page 80... ...
Small and medium-sized manufacturing enterprises (SMEs) should keep abreast of customer expectations regarding on-line responsiveness and use e-business service providers to assist them in creating and operating low-cost Web sites for displaying products, accepting orders, and answering frequently asked questions.
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From page 81... ...
Before purchasing supply chain integration software, companies must decide whether (because of unique requirements, the desire to continue present business practices, or the hope of gaining a competitive advantage) to develop custom modules, often at considerable cost and risk.
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From page 82... ...
Recommendation. Despite significant media coverage of the capabilities of business management systems, small and medium-sized manufacturing enterprises should evaluate, but generally defer, purchasing enterprise resource planning and supply chain integration software until prices come down, these systems are easier to install and use, and the benefits of specific systems have been more thoroughly validated.
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From page 83... ...
In addition to electronically integrating product and process development, prototypes can be tested in virtual environments prior to fabrication. In response to this initiative, prime contractors are increasingly using these advanced technologies and, to the extent that their supply chains are integrated, they will increasingly expect these capabilities from suppliers.
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From page 84... ...
To date, most OEM attempts to use high-performance modeling and simulation packages have been frustrated by limitations in software capabilities and by slow adoption throughout their supply chains. As integrated supply chains migrate toward higher levels of electronic design, modeling and simulation, and rapid prototyping, SMEs will have to
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From page 85... ...
Small and medium-sized manufacturing enterprises should carefully analyze the requirements and opportunities for electronic design systems but defer investing in them, if possible, until system capabilities increase and returns justify the investments. PROCESS AND MANUFACTURING TECHNOLOGIES The technology needs of an SME extend beyond electronic communications and design capabilities.
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From page 86... ...
The basic premise of flow manufacturing is the pull of materials through production and the supply chain based on actual customer demand, rather than the push of materials based on a preset schedule (Blanchard, 1999~. Flow manufacturing encompasses many Japanese lean manufacturing techniques, such as reduced cycle times, reduced inventory, mixed-mode manufacturing, and line balancing.
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From page 87... ...
FINANCIAL ISSUES Successful participation in many integrated supply chains is becoming increasingly difficult for SMEs unless they have extensive financial resources. Keeping up with new technologies, the increasing demands of supply chain integration, the increasing risks of product liability, and the reserves necessary to respond to rapid changes in the business environment all require strong financial reserves.
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From page 88... ...
As supply chain integration requirements and the need for new technologies increase the financial requirements imposed on small and medium-sized manufacturing enterprises, they should integrate their own supply chains to reduce redundant inventories and excess manufacturing capacities, thereby freeing cash for other investments.
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