Matching supply chain, business strategies
July 10, 2007

1. Connecting business, supply chain strategy: A new study by Manufacturing Insights notes that while there is a need for increased speed and customer service in supply chain strategies, those are in conflict with the need to reduce manufacturing, material and logistics costs. According to the survey, 71% cited increased quality and customer satisfaction as their top business objective, but 48% said reducing material, manufacturing, and/or logistics costs was their top supply chain strategy.

“As a whole, it does appear that manufacturing firms surveyed are still looking at a cost strategy in their supply chains, as opposed to speed, flexibility, or service-enhanced supply chain strategies,” says Kimberly Knickle, program director and lead analyst on the survey.

 “Ideally, companies should map their business objectives with supply chain priorities to make the most effective IT investments, “ Knickle said. “The survey results indicate that many companies have a gap between their overall objectives and how they execute in the supply chain,” she adds.

2. Pipe dreams: High-density polyethylene pipe is in increasing use for highway projects after the Federal Highway Administration changed its specifications last year, and a New Jersey manufacturer is gearing up to meet those increased needs.

Advanced Drainage Systems, Inc. has begun production at its largest U.S. manufacturing plant in Gloucester County, NJ. The $12 million, 68,000-square-foot facility will bring 100 new jobs to the area and will serve ADS customers in New Jersey, New York, Pennsylvania, Delaware, Maryland and Washington, D.C. The company plans an open house for Sept. 18.

Said Joe Chlapaty, president and chief executive officer of Advanced Drainage Systems, Inc. “By manufacturing pipe as close to our customers as possible, it will significantly reduce the time and cost of delivery. The combination of our on-going national expansion program coupled with new changes to regulations on Federal-aid highway projects means ADS’s customers and tax payers across the U.S. will see significant savings on the increasingly expensive public infrastructure projects.”

 3. Speed stacking: It’s manufacturing of a kind. It’s certainly material handling. It’s on Regis and Kelly, so be forewarned…

4. And things continue to grow: There are a series of positive reports on manufacturing growth this summer. One of the latest was the June report from the Institute for Supply Management. June was the fifth straight month of growth for the ISM Index, which climbed to 56, up 1 point from May. ISM figures show a reading above 50 means manufacturing is generally expanding.

"Following a weak first quarter, the manufacturing sector rebounded in a strong fashion during the second quarter. In June, manufacturing expanded at its fastest pace since April 2006 when the PMI Index registered 56.9,” said Norbert J. Ore, chairman of the Institute for Supply Management Manufacturing Business Survey Committee. “This performance appears sustainable in the third quarter due to the current strength in new orders and production."

The ISM's New Orders Index rose to 60.3% in June, up from 59.6% in May. Eleven industries reported increases during June: petroleum & coal products; plastics & rubber products; nonmetallic mineral products; chemical products; food, beverage & tobacco products; primary metals; fabricated metal products; miscellaneous manufacturing; computer & electronic products; paper products; and machinery.

ISM's Production Index registered 62.9% percent in June, an 8% increase from May’s figures.

 
5. Managing security: Cisco Systems and Rockwell Automation were two of the companies involved in the latest ARC Conference in Boston, and they also discussed their collaboration on plant-floor security networks. As their latest white paper notes, “Powerful connectivity throughout the company and to outside partners has become indispensable for success. But it also creates an environment where security threats are a far greater concern. Because of the critical nature of industrial systems and the risks associated with them, it is more important than ever for manufacturers to implement a comprehensive network security strategy that protects while it enables access and integration to achieve efficiencies and complete visibility.”

Posted by Wolseley on July 10, 2007 | Comments (2)