South-Western - Management  
A Supply Chain with No Weak Links
Topic Operations Management
Key Words Supply chain, inventory management, materials requirement planning, e-procurement, EDI, just-in-time
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News Story

What do Sun Microsystems, IBM, Dow Corning, and Bossard USA have in common? They are large-scale manufacturers seeking to improve production methods through the use of advanced computer technologies.

To compete effectively in today's business world, companies must produce and deliver the highest quality goods and services at the lowest possible cost. To keep production expenses at a minimum, the world's leading manufacturers employ high-tech computer systems that manage quality, automate key processes, and facilitate just-in-time management of materials.

Creating a more efficient supply chain isn't for world-class manufacturers only--new technology enables even the smallest mom-and-pop shops to do business alongside major manufacturers. Whether production and distribution data is shared between two local companies or among a group of multinational corporations, computers make it possible for key players to transact orders and deliver materials with precision timing.

Computer networking enables manufacturers to share data and make decisions regarding the supply chain. As one officer at IBM states, "Technology connects us to all our core suppliers. They can see our forecast, demand and replenishment requirements." With their clear line of sight, IBM and its partners can immediately correct supply imbalances, whether managing inventory or transacting orders with suppliers using just-in-time methods.

Questions
1.

Read the article and identify at least two new technologies that help manufacturers manage the supply chain with greater efficiency.

Source Helen L. Richardson, "Get smarter with your supply chain: improvements in supply chain technology enable improved information flow and connectivity," Logistics Today, July 2005 v46 i7 p29(4).
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