Enterprise Integration Act of 2002 and SCM
How will setting supply chain standards improve supply chain management?
The Enterprise Integration Act of 2002 was initiated by the National Institute of Standards and Technology (NIST) with the goal of helping companies coordinate supply chain information exchange and improve efficiencies (Thibodeau, 2002). The need for standardization stemmed from soaring costs and lengthy design and transaction timelines -- just a few of several challenges revealed in a1999 study conducted by the NIST. The study estimated that the auto industry alone would see $1 billion in annual supply chain savings with improved enterprise integration (Yimin et al., 2011). Enterprise integration refers to seamless electronic integration along a vertical supply chain (Thibodeau, 2002).
Manufacturers in today's marketplace require flexibility, adequate time to respond to shifts in customer preference, and efficiency (Jett, 2008). Today, more customized and specialized products are necessary to meet fluctuating consumer demands. Streamlining information exchanges -- without data loss or corruption -- gives manufactures the ability to meet such demands (Yimin et al., 2011). At the time the Act was passed, most software and information technology systems lacked interoperability (Jett, 2008). Incompatible applications prevented manufacturers and suppliers from easily sharing data or collaborating on design specifications, modifications and other pertinent elements of the manufacturing process.
In addition, dispersed supply chains and operating environments are sometimes characterized by multiple IT platforms and outsourcing strategies that vary in scope. Standardization helps suppliers coordinate information exchange throughout the supply chain more efficiently, so that information can flow to all participants (Thibodeau, 2002). This enables everyone involved in the manufacturing process to react to changes, stay informed, exchange ideas, and respond appropriately to changing...
Some manufacturers have sought to improve their profitability by becoming more horizontally integrated in their supply chain management operations, but it does not appear feasible for the company to acquire the vendors that supply its component parts so viable alternatives must be identified that can facilitate the supply chain management process vertically. As Choy, Lee and Lo (2003) point out, "Very few manufactures now own all the activities along the
As has been mentioned throughout this thesis, the entire aspect of mass customization as it relates to the development of a stable quote-to-order process throughout manufacturing is critical. In this specific area is where many manufacturers face the dilemma of being entirely project-based in their manufacturing and business strategy approach or move more towards functional manufacturing with the exception being mass customization and a more fluid, agile, quote-to-order process. Figure
Business Systems Development The Strategic Benefits of Adopting an Enterprise Cloud Computing Platform Cloud computing platforms are enabling enterprises to attain faster time-to-market of new products, in addition to enabling higher levels of collaboration and communication with suppliers, stakeholders and partners externally. Enabling cost reductions through consolidation of legacy IT systems while increasing process efficiencies is delivering a positive Return on Investment (ROI) while also increasing customer responsiveness. The strategic benefits of
Supply Chain Management Hypothesis defined Concepts of SCM and the evolution to its present day form Critical factors that affect SCM Trust Information sharing and Knowledge management Culture and Belief -- impact on SCM Global environment and Supply Chain management "Social" and "soft" parameter required for SCM Uncertainties This chapter aims to give an outline and scope of the study that will be undertaken in this work. The study lays out the issues faced by manufacturing organizations when it comes
Amazon.com A Strategic Assessment of Amazons' e-Strategies Amazon's remarkable ascent as one of the top online global retailers can be attributed to the foresight they had in creating a comprehensive distributed order management, Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and e-commerce series of systems. The many other e-commerce sites that rose quickly with massive infusions of venture capital just as quick exited the market, flaming out due to a lack
Figure 2: Dell Inc. Marketing and Manufacturing Process Integration Based on analysis of Sources: (Kapuscinski, Zhang, Carbonneau, Moore, Reeves, 2004) (Gunasekaran, Ngai, 2009) (Bilek, 2010) Discussion of Current Business Issues Today Dell suffers from not having enough insight into the most critical customer relationships necessary to grow its emerging virtualization and Cloud computing businesses, as the company's approach to managing by technology instead of customers created a very myopic mindset. The transition from being
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