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While Askegar and Columbus discuss the role of PIPs with market makers in
the high tech manufacturing and distribution marketplace (1, 4) Swanton (2)
discusses the potential impact of RosettaNet adoption on manufacturing
centers in low-wage countries and points to the efficiencies possible in
Chinese manufacturing centers. Swanton sees the enablement of Chinese
manufacturing via PIPs in RosettaNet as the tipping point in their ability
to capitalize on their cost advantages and compete on time-to-market and
supply chain synchronization, much like their western counterparts.
Further, Swanton sees the emerges of the RosettaNet Automatic Enablement
(RAE) program with its uses of PDFs that document process flows, as
critical in the development of a pervasive RosettaNet network of
manufacturing suppliers in China. Chinese distribution channels throughout
high tech specifically have already worked to include content management
and content automation as part of their initial RosettaNet on boarding
strategies, as many of these companies are using highly manual approaches
to managing their content today. As RosettaNet is now under the umbrella of
the GS1 US standards organization, which is formerly known of as the
Uniform Code Council (UCC), the standards body is working to drop the cost
of on boarding...
If they are successful the
resulting inventory visibility and resulting order management velocities
will be very significant and result in higher profitability for the entire
high tech industry globally.
The bottom line is that the setting of supply chain standards is critical
for the growth of entire industries, and as the research of Askegar and
Columbus has shown, that standards are most agreeable when both sides have
a transaction to complete. For content integration across suppliers and
buyers however there needs to be greater motivation, and in the case of
Chinese manufacturers coming online, the ability to position themselves as
viable suppliers using content is critical. Supply chain standards will
greatly simplify the highly complex content, data and transaction processes
between suppliers and buyers in supply chains.
References:
Askegar and Columbus - High-Tech Supply Chains need best Practices To
Ground RosettaNet. Vinay Askegar, Louis Columbus. AMR Research. Tuesday,
January 1, 2002. Pgs. 1 - 4.
Swanton. Low-Cost Countries and Onboarding Bring RosettaNet to the Tipping
(PIPing?) Point. Bill Swanton. AMR Research. June 21, 2005
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