The following statistics were offered:
Order Lead Time Inventory turns On Time Delivery Total Indirect Cost (Relative)
Traditional Supply Chain 15 days 5 20% 100
Full Supply Chain Vision 2 days 90 99.9% 90
A major driver of collaboration activities is the rapidly evolving practice of contract manufacturing. Many companies, large and small, are turning to sources of manufacturing expertise to help develop, manufacture and ship their products to the end user. These companies are typically never heard of, but manufacture more and more of todayʼs electronics products. While companies such Intel, Sun Microsystems and Cisco are almost household names today, the EMS companies such as Solectron, Celestica, Flextronics and Sanmina-SCI are not so well known. A typical contract manufacturer can serve as many as fifty different companies from one facil- ity providing services that range from simple assembly of shipped in components to full product responsibility that includes design for manufacturability feedback, material sourcing, product test and record management,
packaging and shipment to the end user.
From the perspective of the contract manufacturer one might imagine the tasks necessary to maintain management control over incoming inventory, scheduling, product changes, customer shipment information, and quality assurance. What started as a simple assembly process for test or overflow capacity has become a deep collaborative effort between companies with global multi-facility manufacturing capability serving many different customers such as Intel, Sun Microsystems or Cisco Systems.
Companies in this business recognize the need to use collaborative tools from a number of perspectives:
Internal processes to maintain their own management control systems must be above typical stan- dards. The argument made by the contract manufacturer is they can do a better job by focusing on a core competency of manufacturing. Since that is the primary value they bring, the ability to perform is the center of management effort. The contract manufacturer must be everything and more than a company might expect from their own facilities.
The relationship with a number of high level customers each with their own set of suppliers, engi- neering changes, and varying end user customer requirements suggests an environment with many continuous touch points and an anticipatory posture that effectively deals with every contingency before the moment of crises on the plant floor.
Issues of culture and truth are just as real in this industry as any other. The ever present concern of “How do I know my product is being produced correctly and on time?” is pervasive and must be ac- commodated.
The answer is total openness and complete electronic connection for everyone. Collaboration is at the center of this industry: ERP systems linked in real time. Product lifecycle management systems installed with like systems or extensions at contractor sites, supplier locations, and customer location are common. MES solu- tions are now able to collaborate directly together to avoid the filtering that takes place once information is fed to higher level layers such as ERP or planning functions. Engineering change order management systems that can
effect different lots within the manufacturing pipeline is the norm. to a variety of secured observers. And in some cases cameras are in their products being assembled and tested.
On-line assembly and test data is available place allowing the customer to actually see
Collaboration Synergies Inc.
Electronics Industry Collaboration • 6
360.833.8400 • www.cosyninc.com