Accelerate chairman urges manufacturers to think global systems

A leading industry figure today urged manufacturing SMEs to think global, think strategic and think systems if they want to succeed in 2006 and beyond. Malcolm Bird, director of quality and sustainable development at GKN Driveline, is the new man in charge at the West Midlands automotive suppliers organisation Accelerate – and he’s thinking cross-industry, supply chains and IT. “I have strong views on IT: the biggest trap is thinking you can just solve problems by buying an IT solution,” says Bird. “SMEs need to look at their business problems and then use IT to deal with complexity. Then new systems can provide higher value add and new opportunities.” He cites work with the International Automotive Task Force and its global management systems standards. “Most of that work came from our experience of matching IT systems to business,” he says. His advice: “Computers think logically and people often don’t. So when we’ve put systems in, we’ve changed the company processes to match the IT solution, not other way round.” Just as important though, he also urges manufacturers to think about their supply chains and associated systems, particularly given the rise and rise of low cost manufacturing economies. With Accelerate’s supply chain initiative currently likely to replace grant funding with specialised business improvement support, there are opportunities here. “People have to realise that today it’s a global industry – not a UK or West Midland s industry, or even only an automotive industry. Accelerate can help more widely with networks, communities, supply chains and support and representation,” says Bird. “Think about a ‘Made in the West Midlands’ badge and direct representation to customers. It’s a relatively small step from where we are now. My vision is initially for Accelerate to trade more as West Midlands Automotive Ltd. “It will be an evolution not revolution, but I see us going to large customers and saying ‘Do you have a supply issue we can solve for you?’ and then inviting our manufacturers to come into that network.” It’s already happening. Last year, Accelerate launched NEAC (Network of European Automotive Clusters). Bird believes the evidence from there is that UK manufacturers are “holding their own” against other nations. “China has obviously taken centre stage in recent years, but there has also been significant movement in India, Mexico, Brazil and central Europe, especially from the likes of Slovakia and Poland. Even with all these changes, the UK still retains its reputation as being a key partner to the global automotive industry.” But he adds: “If this is to continue, the supply chain must embrace, and not fear, what is going on in every corner of the world. The emphasis has got to be on building on our strengths, such as innovation, project management and latest technologies.”