A recent TV ad pokes fun at an increasingly taxing problem for IT departments. A group of executives sit around a table gazing in awe at a 'universal business adapter', which connects everything from Linux servers to laptops and CRM. The only problem is that, to make the adapter work, the managers need an adapter. The message? There's no simple answer to real-time integration.
Linking ERP and supply chain technology offers tantalising benefits. Having real-time information on raw materials, shipments, logistics and fulfilment means that companies can plan their entire supply chain more efficiently. When a truck breaks down or a raw material isn't available, real-time organisations can quickly switch production schedules and adjust delivery estimates for customers. This all spells lower inventory, more automation and better use of capital, says Laurence O' Neill, a supply chain consultant with LogicaCMG. "Getting to that level of integration is the Holy Grail for most of the IT directors we speak to," he says.
When Vinten Broadcast, a manufacturer of TV cameras, rolled out an integrated supply chain application from IFS, the company cut order processing time from four days to under one hour.
In the past, Vinten's customers sent orders by fax, and Vinten then ordered goods from its suppliers using paper or email. Today, the IFS software provides a single portal for customers to place orders, and for suppliers to receive order information. Sales staff use the portal for real-time information on stock availability, which is particularly useful in the growing spare parts business, says Chris Stanghan, Vinten's business systems manager. "If a film crew is in Surrey filming a drama and a camera breaks, they want to know immediately whether we have a spare, and when it can be delivered," he says.
Real-time is expensive and time-consuming
Vinten Broadcast is fortunate because all its systems run on the same software, allowing near-real-time information sharing between ERP and supply chain apps. For most enterprises, the IT infrastructure is a spaghetti of mainframe applications, legacy systems, customised applications and networks that have been cobbled together over decades. Creating real-time information in this environment can be both expensive and time-consuming.
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