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By Thomas Orlowski, Vice President, Information Systems,
National Association of Manufacturers |
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E-commerce Can’t Stand Alone |
E-commerce really is changing the way the business is done. Are you ready to deal with the challenge of manufacturing in "Internet time"? For many manufacturers the dream of easily finding new vendors and customers over the Internet is just that - a dream. Why? Because they underestimated the effort it takes to succeed in e-commerce.
Over the years, manufacturers have improved productivity and responsiveness - while cutting costs - by reengineering business and manufacturing processes and increasing the use of technology throughout their operations. The flow of material and product through the majority of manufacturers and distributors now depends on a series of highly integrated systems.
In the rush to the Web, however, many manufacturers did not give proper consideration to the effects that e-commerce would have on these complex systems. The efficiencies gained by Web "sourcing" and sales were lost in an internal scramble to get Web inputs into existing front- and back-office systems and shop-floor systems.
E-commerce does not immediately replace current methods of doing business. In most companies, e-commerce will be an additional process that will have to run parallel to existing operations for the foreseeable future. Therefore, e-commerce must be completely integrated into all company plans and systems, like any other business function. E-commerce cannot exist in a corporate vacuum!
Before launching e-commerce, prepare all systems for impact.
Consider how operations will be affected by -
- demands for faster delivery and customized service;
- changes that affect your hard-won supply-chain relationships, especially in delicately balanced just-in-time chains; and
- changes in the company’s internal time schedules and processes.
New software creates even more choices - and
challenges. As if there isn’t enough pressure already, ERP vendors and most manufacturing systems vendors are now rushing to make their products Web-ready. That means there will be more drivers for lean, flexible manufacturing and the continuous process improvement that entails. Be careful how these are implemented.
Software readiness is one thing. Workforce readiness and political boundary resistance are quite another. As e-commerce use grows within a company, everyone will be affected to some degree. |
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