Study calls for standards to improve information flow
August 25, 2004
Implementation of more efficient supply chain integration is much further along in the electronics industry than in automotives. The success of industry-wide consortia such as RosettaNet and NEMI in cultivating e-business process standards is credited for much of the electronics industry's adoption of efficient communications models. But there's a long way to go.
Managing supply-chain communication of inventory and scheduling information costs $5 billion every year in the U.S. automotive industry and almost $3.9 billion in the electronics industry, according to a recent report by the Commerce Department's National Institute for Standards and Technology (NIST). These figures account for about 1.2% of the value of annual shipments by each industry.