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Study: Manufacturers Need But Don't Have Supplier Collaboration

Supply Chain Management Review (SCMR) is the "Harvard Business Review" of Supply Chain publications.  At least that's how it was put to us recently -- how accurate that is a subject for another blog.  For our purposes, let's look at a study posted by SCMR on 12/8/09.

Global companies need supplier collaboration

"Most companies know that a global supply chain needs to be in touch with all partners involved, but very few companies out there are actually doing it," wrote SCMR (12/8/09).  One stat really stuck out:

75 percent of executives surveyed "said they have 'no ability' or 'an unsatisfactory ability' to extend and leverage their internal systems to suppliers and outsourced service providers."

It's amazing that in this day and age there is any issue at all with communication or collaboration in a supply chain!  There are so many wonderful tools out there to address this.  Some are even online solutions -- simple to set up and to use as modern online banking.  Online solutions are also known as SaaS.  There are different kinds of SaaS, but for the most part if you are dealing with a company that's been providing SaaS for over 5 years you're likely in good hands.

SaaS for modern supply chains? 

Interestingly, the article next to the one we quoted about on the SCMR.com home page -- posted same day -- says that SaaS is poised to ramp up in new economy.  Well who knew?  :)  A new study "suggests that the economic recovery will encourage more use of Software-as-a-Service (SaaS) technology."  The article has a Logistics slant, which is fair enough seeing as it's written by an Editor at Logistics Management.  But it's relevant to our discussions here certainly.

Automating supply chains:  bling? or ka-ching? 

Great quote from the SaaS article:  Warren Hausman, Professor of Operations Management in the Department of Management Science and Engineering at Stanford University says, "...report demonstrates that companies can gain substantially by automating their global supply chains, probably much more than they have estimated to date," said Warren Hausman, at Stanford University.

We're hearing ka-ching from automation in a supply chain. 

Automated materials management in supply chains:  SaaS-y!

Recently, one global packaging supplier started automating its supply chain collaboration, using Actio’s Material Disclosure SaaS module to capture, track and analyze the chemicals and substances in their products and supply chain – for environmental and regulatory compliance.  This SaaS module is collaborative software for supply chain materials management:  suppliers log in and update product data (product ingredients mostly).

Guess it's really time to open our kimonos.

Also, we're aware of an article on software for REACH Regulation which discusses supply chain collaboration via a SaaS module used by companies like Stanley Works to manage substances in the supply chain – specific to the stringent environmental regulation in Europe called REACH.  Hence the name, REACHtracker.

Lean and green Earlier this month the esteemed Managing Automation posted about a new SaaS module for material approval with new functionality allowing manufacturers to better implement and manage Six Sigma initiatives, invigorate Product Lifecycle Management (PLM), and take control of global product stewardship.

Quote: the product "has become the market leading SaaS solution for greening the enterprise and the supply chain at the materials procurement level,” said Russell McCann, President and CEO of Actio. “Manufacturers use Gatekeeper to ensure that their products and supply chains comply with global environmental regulations, as well as with customer specifications and requirements."

Automated (M)SDS data management: enterprise and supply chain

Supply Chain Brain recently posted about a new SaaS module for materials management at the substance level -- managing EHS and MSDS (and GHS when it happens) data.  The makers of the module claim to be experts in materials information management, from BOM component to substance-level, with a specialty in local and global environmental regulatory screening.  

This sort of materials management is used by all companies, maybe a slight emphasis on power, aerospace, packaging, and electronics companies.  A list of clients is here.

Unlock the supply chain!