This paper provides an empirical illustration of the potential of a cross‐supply chain information system (CSCIS) in an automotive industry setting. Whilst dramatic reductions in downstream finished goods, work‐in‐progress and raw materials inventories have taken place in many automotive supply chains, this paper looks at how demand information can be made more transparent in order to improve the efficiency of upstream operations. The paper concentrates on the findings from a case study that used a prototype Internet‐based system to convert original equipment manufacturer (OEM) demand into second and third‐tier component requirements. A computer‐based value analysis illustrates how this information might be used to significantly improve supply chain synchronisation in the lower tiers. The research demonstrates how information systems can be used to improve supply chain performance and provides further motivation for the development of more holistic supply chain planning information systems.
As manufactured products become more complex, their design and manufacturing demands more and more resource which is being increasingly sbared between the supply/value cbain members. Competition is being typified less by firm versus firm and more by supply chain versus supply chain. The final assemblers are simplifying their supply chain to reduce logistics complexity and provide best value to the final customer. To suppliers, particularly SM Es, this gives rise to both opportunities for increasing 'added value', as well as threats of being dropped from rationalized supplier bases. Historically, SMEs have been sandwiched between large customers and suppliers and have always reacted to their superior bargaining power. Now, if the SMEs want to survive and grow, they have to adopt a more proactive stance to re-position themselves in response to these supply chain trends. In this paper, we present a technique for re-positioning the supplier in terms of 'physical value added' and competency/practice-based 'differentiation'. We use the proposed approach to see how one supplier has successfully changed his business and another has developed plans to change, in line with the trends in their industry structure.
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