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Surviving Supply Chain Integration Strategies for Small Manufacturers (2000) / Chapter Skim
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11 Requirements and Characteristics of Successful Small and Medium-Sized Manufacturers
Pages 92-98

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From page 92...
... As the industry continues to mature, the emphasis typically evolves toward cost saving, a limited product array, high levels of customer service, and improved manufacturing practices. Thus, SMEs must evolve the focus of their enterprises in a manner compatible with the phases of the industries they serve.
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From page 93...
... Small and medium-sized manufacturing enterprises must reassess their competitive positions and those of their supply chains on a regular basis and position themselves to respond rapidly to changing conditions. Case Study: Astronics Corporation's Repositioning Strategy Astronics Corporation, an SME headquartered in Buffalo, New York, operates in two distinct business segments: specialty packaging and aerospace electronics.
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From page 94...
... CHARACTERISTICS OF SUCCESSFUL SMALL AND MEDIUM-SIZED MANUFACTURING ENTERPRISES The committee interviewed executives of several successful SMEs in an attempt to identify common characteristics that are essential for success. The SMEs, which ranged in size from $2 million to $50 million in annual sales and had 30 to 450 employees, were selected because they have viable businesses, strong customer bases, and positive out-year projections for sales and profits.
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From page 95...
... Each SME should consider the following questions and create detailed customer evaluation criteria specific to its business needs: · Does the customer offer multiyear contracts? Spot buys may be good for short-term revenue, but the benefits of an integrated supply chain can be maximized only when both the customer and SME make long-term commitments.
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From page 96...
... Recommendation. Small and medium-sized manufacturing enterprises should develop and implement customer evaluation and selection criteria, including the following: opportunities for long-term contracts approach to supply chain integration · extent of information sharing · required forms of communication · access to product and technology plans · expectations regarding participation in product design · recognition of supplier quality certification · whether the customer can be served profitably
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From page 97...
... Thus, customer-imposed requirements that may seem onerous in the short term might prove to be beneficial in the long term. Strategic Alliances and Partnerships Successful SMEs create, implement, and maintain strategic plans, which include partnerships and strategic alliances that enable them to meet customer needs better.
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From page 98...
... Sharing of Information SMEs should develop the capability to provide accurate, robust data to supply chain partners. Supply chain integration/management software should be chosen carefully.
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Key Terms

  • successful integration
  • supply chains
  • chain integration
  • customer demand
  • successful smes

  • customer evaluation
  • product design
  • integrated supply
  • business environment
  • astronics corporation

  • aerospace electronics
  • remain competitive
  • manufacturing enterprises
  • specialty packaging
  • integration requires

  • malcolm baldrige
  • adopt statistical
  • implement customer
  • core technology
  • manufacturing practices

  • structure constituted
  • metal structure
  • folding boxes
  • expectations regarding
  • site audits

  • recognize quality
  • provide accurate
  • meet customer
  • levels required
  • selecting customers


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