Navi Radjou, principal analyst at Forrester, believes IT
directors need to look at how the internet can be more fully
embedded within business processes.
He predicts that manufacturers will use the internet to connect
machines, using a concept Forrester has dubbed "X internet". The
technology will tackle remote management and capture information to
improve customer service. One example of where such technology is
being deployed is at BP.
"Rather than fly engineers to oil rigs, sensors feed information
back to head office. The operator can then use exception tracking
to ensure parts are replaced," he said. This approach avoids the
expense of manual inspections.
Managing directors in manufacturing are increasingly turning to
outsourcing to lower costs, which leads to a number of challenges
for IT directors, according to Simon Bragg, an analyst at
ARC.
He said, "Previously manufacturers were focused on reducing
inventory and hitting delivery dates using supply chain
optimisation, but now IT directors need to share data with the
outsourced plant to forecast production."
The challenge for manufacturing is tracking the product once it is
in transit. Bragg said one option, as used by fashion retailer
Burberry, is for the manufacturer to use a third-party logistics
operator to deliver goods direct to the retailer. Bragg thinks RFID
or Savi, a satellite-based smart tag deployed by the Department of
Defence in the US, can be used.
One of the biggest challenges AMR Research has seen in
manufacturing is the need to plan and influence demand for
products. Bill Swanton, vice-president for research at AMR, said,
"Manufacturers need to speed up the introduction of products
without disrupting the supply chain."
The demand-driven supply network is one way in which manufacturers
and their customers can track demand for products.
Swanton said the supplier and the retailer collaborate to adjust
stocking levels, based on what people want to buy.
For it to work Swanton said, "The manufacturer needs constant
visibility across its facilities and to have in place a process to
respond to changes in demand."