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Electronics Production | September 26, 2007

If We Can't Collaborate Let's Self-Orchestrate

evertiq.com reported earlier that Andrzej Teplicki, Director, Supply Chain Solutions, at Solectron posted an article about Andrzej Teplicki on the cooperation in the EMS industry. Now Andrzej has posted an follow up story that describes "If we can't collaborate let's self-orchestrate."
As I mentioned in my post on Sept. 7, I don't believe that today's collaborative supply chain reality meets the collaboration vision. I also mentioned the ongoing effort by the ESCA Taskforce on the Self-Orchestrating Supply Chain. It seems we at Solectron are not the only ones disappointed with the limited supply chain collaboration, and we have a broad range of companies participating in the ESCA effort. Here's what sparked the idea and what we are embarking on:

In the 1950s and '60s, a well designed supply chain was like a conductor-led orchestra, vertically integrated and under one leader. Now, in the world of outsourcing, short product lifecycles, long lead times and divergent business objectives, the supply chain is much different. To harness the value that is lost due to existing inefficiencies, yet realizing that the command and control days are never coming back, the Electronics Supply Chain Association (ESCA) has embarked on creating a framework out of a vision for a better supply chain. That vision revolves around developing a self-orchestrated supply chain and the ESCA has formed a taskforce to develop industry-accepted frameworks and guidelines, which will help through voluntary compliance to identify and share not only the risk, but value.

The Self-Orchestrated Supply Chain will bring together several independent supply chain participants who share a common business objective that needs to be fulfilled through an end-to-end supply chain. The task force will develop a structured environment, with defined rules of engagement, developed tools and processes, all wrapped into a reusable framework. Components of the framework will include information sharing, cost/ performance tradeoffs, risk mitigation, and value sharing. The framework will be developed utilizing case studies, uncovering supply chain roadblocks, sharing best practices and setting guidelines on how to share value in a mutually beneficial way.

I will be tracking the task force's progress over the next few months and reporting back to you the findings, deliberations and conclusions of the task force's work.


Posted by Andrzej Teplicki, Director, Supply Chain Solutions, Solectron at blog.sc.solectron.com

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