Industry Focus | Supply Chain Management

Manufacturer = Distributor

With the ongoing globalization of the manufacturing industry, manufacturers are increasingly finding themselves functioning as distributors, too. Products that have been outsourced are returned to manufacturers as finished goods, but many manufacturers don't have the technology solutions to cope with the distribution process.

While much has been written about outsourcing and its impact on the labor force, less has been said about the required technology shifts as a result of globalization and international outsourcing.

By 2012, it is estimated that more than 60 percent of all manufacturers will have a strong distribution element. Whether due to globalization, outsourcing of manufacturing functionality, or profitability in post-production after sales activity, technology selection made over the next five years must include these changing requirements and software selection evaluations must be based on the new role the organization is likely to assume. Without this forward-looking reality check, ERP systems and other technology purchases will quickly prove to be costly, outdated and ineffective.

Click to Manufacturing.net and read the entire article.