Organizations, especially those who outsource manufacturing operations, can improve operational capabilities with better connectivity with and visibility into all tiers of their suppliers in the business network.
Outsourcing is increasingly becoming a key strategy to lower costs, reduce capital assets and get products to market more efficiently than the competition. According to IHS Isuppli, the total electronic contract manufacturing market continues to hold in 2012, after posting a solid growth in 2011. Industries such as pharmaceuticals are leaning towards outsourcing clinical trials and manufacturing.
But at the same time, outsourcing has led to increased complexity and less visibility and control over the manufacturing process -- as the key planning and execution data resides outside the four walls of the enterprise. Electronic connectivity with suppliers alleviates this issue by providing critical visibility and control that OEMs need. But why not just connect with the first tier of your supply base and then let them manage their suppliers?
