The implementation and evaluation of a micro supply chain management system in a SME manufacturer - page 1
Keywords: sme, manufacturer, scm, supply chain
By ozzy on 18/01/2007 13:56:21
Level: Bachelor Honours Degree (BA, BEng, BSc etc)
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The implementation and evaluation of a micro supply chain management system in a medium-sized manufacturer - SCM implementation tips. (Abstract & Introduction)
ABSTRACT:
Companies often focus efforts to improve business efficiencies on internal systems and significant benefits can be achieved by so doing. However, the magnitude of the realised benefit is restricted if only processes within the organisation are targeted for improvement.
This paper describes the implementation of a bespoke web-based supply chain management system / online collaboration system. The main drivers behind the development of the system were late deliveries from the supplier and also sporadic and inaccurate delivery schedule information from the supplier.
The implementation approach is discussed along with the problems that were encountered en route and the measures that were undertaken to ensure that implementation was successful. The importance of metrics is stressed as these are essential if any improvements are to be quantified which in turn enables the justification of such projects in financial terms which is compounded by the ‘soft’ benefits that result from the use of such systems.
INTRODUCTION:
Manufacturing is vital to the economies of Europe, "more so than ever" according to the Director of Economic Affairs of the Union of European Industrial & Employers Confederations (UNICE). Considering employment alone manufacturing generates 4.5 times as many secondary jobs as retail and so is clearly important in the context of lowering unemployment. Despite the importance of manufacturing, employment in the sector fell by nearly 20% across much of Europe between 1970 and 1990 with the worst affected being the UK. Over the same time span import penetration doubled in the UK and these trends have continued coupled with major job losses across the sector as whole.
These job losses have, however, contributed to the almost 50% increase in UK productivity that manufacturing experienced between 1985 and 1994. However, existing standards of value adding capability within British industry still remain at a low level and if the UK manufacturing industry is to be competitive globally then the fat must continue to be trimmed and the strategic benefits that can be facilitated by recent advances in technology, for instance, the feasibility of supply chain planning and online collaboration, need to be built. Further, effective implementation and management of these ‘devices for efficiency’ for manufacturers are considered to be critical to long-term survival and competitive advantage.
Poirier and Bauer postulate that today’s business leaders can be grouped into four categories depending
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