Professional Documents
Culture Documents
Just as globalization offers more materials and laborers, it also offers new
customers in new locations with new needs.
New technologies and a shrinking globe mean that it is easier for companies
to grow generally: to produce more, offer more, and sell more. Expanding
borders also means expanding businesses and corporations.
Increasing complexity:
Lack of data
So, what does this all mean when something goes wrong or there is a supply
chain disruption?
Lets look at the Thailand floods as an example. Disk-drive companies were hit
hard after key suppliers were knocked out of commission. The companies
needed to reroute work to other suppliers not affected by the floods. Without
the correct, real-time data of when, where and how much supplies were affected,
it is difficult to quickly regain stability.
These events are hard to manage. Manufacturers need to find a way to succinctly
manage multiple suppliers across a number of regions.
As a result, the value of supply chain visibility has increased significantly. This
capability helps to significantly minimize risk of loss, order delays and reduced
quality. Manufacturers that take a wider, more holistic perspective across
operations can better manage complex supply chains. By implementing
technologies that can increase visibility into the supply chain, manufacturers
can more easily collaborate and communicate with suppliers. Not only will
processes instantly improve, but the ability to prevent (or at least minimize)
disruptions will help to increase the bottom line.
With new markets for customers comes new competitors. When you are
competing on a global scale for supplier partners, the sky is literally the limit.
Anyone can now compete, so demands can become elevated, especially if a big
OEM order is at stake. Competitors may literally be betting the company to
get a specific order, so could be very aggressive when bidding. This situation
occurs regularly, such that it has now become a big challenge and new source of
risk to global manufacturers. How can you be sure that your low cost bidder
really has the capability to deliver your complex supplier sub-assemblies on
time and to specifications? Further, how well will they perform if you need
multiple design changes or other modifications across your global organization?
Will they still be able to provide you with the necessary traceability and
operational intelligence so you can stay lean and remain a low cost provider?
Conclusion:
In the end, a global marketplace has been both a blessing and a curse, to an
extent. While new markets have opened up, greater risk now exists, which could
potentially impact the survivability of your company. And, as some of these risks
could even compound with each other, it is now critical for manufacturers to
increase their visibility into not only their own operations, but those of their
suppliers. With this much risk in play, any system that can help mitigate excess
risk is well worth the investment.