Unwiring the Supply ChainThe advantages found in using mobile devices within the supply chain may provide the quick ROI needed in a slumping economyBy Ram Reddy Continued from Page 1 You should take a lesson from less-developed countries that don't have the wired infrastructure of the developed world. Mobile technologies have been used to leapfrog an entire generation of the wired infrastructure, in turn also leapfrogging the physical limitations that constrain the amount of information wired infrastructure can carry. For specialized tasks, mobile devices can be used to bypass the business process and supply chain technology infrastructure to add new trading partners in a supply chain. From my own experience in the automotive industry, I've learned that many small suppliers lack the technology infrastructure to conduct business with major trading partners. Arming these small suppliers with specialized mobile devices that can receive orders, confirm shipments, and provide invoicing capability opens up the supply chain to new trading partners that previously lacked the technology infrastructure. You can bring new, smaller, and more cost-efficient suppliers and distributors into the supply chain without requiring extensive technology investments on their part. Moreover, because the trading partner owns the mobile devices, they can reduce the complexities of technology integration and focus on conducting business. Breaking desktop-centric flows within a company is difficult, as it requires modifying the supporting systems to accommodate the change. Mobile technologies used effectively can break a desktop-centric model without changing the supporting systems. The mobile device interfaces directly with a system of record to update or record information from a changed process. An Illustrative ExampleThis solution is best illustrated with an example from the rental car industry. In the traditional car return process, the parking lot attendant inspects the car and issues a sign-off form. You then must walk to the rental clerk's office and turn in the inspection form before receiving your final bill. A few rental car agencies have simplified this process through wireless devices. The attendant with a handheld wireless device scans in the car and prints out a final credit card receipt in the parking lot. This process improves customer satisfaction and reduces the cycle time the car is unavailable in the database. In this model, the existing processes and systems continue to function as usual, even though mobile technologies have radically changed one particular process. Deconstructing the Supply Chain One Link at a TimeAs corporations demand more from their technology investments in the supply chain, mobile devices are an effective way to demonstrate return on investment quickly. If deployed intelligently, mobile technologies can minimize disruptions to existing business processes and systems. This advantage, more than any other feature, has the potential to radically destroy desktop-centric processes across the supply chain. Even though mobile devices will be limited in the richness of information that can be processed, they'll be very effective when used in a narrow domain to deconstruct the supply chain in ways specific to sourcing, manufacturing, and distribution activities. Ram Reddy [ramreddy@tacticagroup.com] is the author of Supply Chains to Virtual Integration (McGraw-Hill, 2001). He is the president of Tactica Consulting Group (www.tacticagroup.com), a technology and business strategy consulting company.
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