Communication is key to competition explosion

In the face of increasing competition from low cost economies like Eastern Europe and China, effective cost controls are a very significant priority for UK manufacturers, along with technology to support better, faster innovation, efficiency and communications. Those are among top line findings of a study conducted by Benchmark Research lat last year for Microsoft. However, the survey of UK operations directors across industries also reveals that manufacturers believe that maintaining or building strong relationships with both customers and suppliers should be a strong focus. Respondents agree that virtually all major companies now operate modern ERP systems, and that techniques like lean thinking, including 5Ss, are now used by the majority. 58% also see Six Sigma methods well established, and 91% see outsourcing to other UK manufacturers as key, while 58% are looking further afield. Good communications and collaboration with the supply chain are now essential to build on what’s become a given level of competence in the UK. Benchmark finds senior manufacturing managers agreeing that forecasting remains tough, along with operations – particularly of those with significant product variety and supply chain complexity. Much the same observations are true of product development and the design chain. Slow, disconnected processes, observe the respondents, delay time-to-market and add unnecessary costs. According to Microsoft, most of the problems are symptomatic of the silo mentality, with poor communications and information exchange between interested parties. Microsoft suggests that manufacturers could be using more of its technologies to make a substantial difference. The software giant cites InfoPath, which can be used to pass purchasing information electronically and automatically to suppliers – also tracking order status, shipping dates and billing data. SME suppliers, says Microsoft, only need Office to take advantage of the facility, and be integrated with manufacturing OEMs in hours instead of weeks or potentially months.