Teste

Driven by Demand: A Case Study |

To stay competitive in the tough electronics industry, NMS Communications knew that it had to create a more demand-driven supply chain. But how to develop build-to-order capabilities in an environment where traditionally the forecasts have ruled? The answer came in the form of an innovative hub-and-portal architecture that integrates internal systems and electronically integrates with key customers and suppliers. The project to convert NMS Communications to an electronically integrated, demand-driven supply chain is a perfect example of the confluence of two potent supply chain management trends: 1. Demand-driven supply chain management. This means changing supply chain planning and execution functions to be driven by demand in real time. The supply chain goal is no longer to build products to a forecast of future demand, but rather to build to actual orders. 2. Trading partner integration. This means integrating trading partners across the supply chain by connecting their information systems. The increased real-time visibility allows them to synchronize their activities, reduce cycle time, and eliminate large buffers of inventory.These two trends, depicted in Exhibit 1, need and support each other. A big benefit of a build-to-order (BTO) supply chain is that large stocks of inventory can be removed. But once these buffer stocks are gone, the supply chain must be agile enough to respond to the variability inherent in the actual order stream. That’s where integration comes in. Real-time visibility and integration back through the supply chain allow suppliers to see the demand in real time and begin mustering the raw materials needed to respond quickly. Converting the supply chain to BTO requires changing a lot more than manufacturing. Product design needs to change, too. Designs must be created that use standard parts and have fewer saleable configurations. The whole organizational mindset needs to change as well. For a