Driven by technological innovations, globalization, altered consumer patterns, and structural demographic and social changes, industrial and white goods manufacturing has undergone tremendous changes during the last 25 years.
Customer markets have evolved from local to regional and from regional to global. The demand from the different markets extends from basics to the refined, with complexity straining the consolidated offering. Dependency on sub-suppliers has increased exponentially, and geographical complexity, for both suppliers and customers, has become a major challenge to manage. Gains in production costs have often been offset by increased logistics (and financial) costs.
Longer lead times have resulted in declining customer service levels. And inefficiencies in these networks of collaborating partners (the Service Network) escalate the amount of capital tied up in assets from end-to-end.
Probably more than any other sector, industrial manufacturing has invested in the global rollout of enterprise resource planning (ERP) systems as a way of facilitating the flow of important business information between the functions within the organization.
This was an improvement, but it later became clear that the need for end-to-end control of information, of cross-enterprise business logic, and of the assets spread throughout the Service Network (that is, among the participating business partners outside of the organization) could not be achieved by utilizing ERP systems (ERPs mainly intended for internal control and structures).
Because many segments of the industrial manufacturing sector are in a mature state, consolidation through merger and acquisitions to ensure a dominant global market share and specialization have both contributed to the momentous increase in business complexity. Inflated expectations of creating shareholder value by capitalizing on synergies between the existing and acquired entities increase pressure on top management.
The focus on core business and the outsourcing of nonstrategic activities has been one method of dealing with this challenge, but this multiplies both the complexity and the non-transparency of the end-to-end business processes.
The environmental aspects of manufacturing are rapidly becoming a burgeoning cost item, and they also contribute to complexity and to requirements for end-to-end governance, visibility, and accountability across the entire Service Network. Global markets’ recent shock of instability and unpredictability has revealed the non-sustainable nature of traditional methods of managing the dynamic complexity of modern industrial manufacturing companies.
eBuilder delivers such a solution today, Customer Care Orchestration. It is built on a new paradigm for managing the extended company—including and focusing on the end-customer. Click SOLUTION in the menu above for a detailed explanation!