Implementation of intelligent systems, enabling integration of SMEs to high-value supply chain networks

In the face of increasing competition from low-cost economies, European manufacturing companies are focusing on optimisation of operational activities to remain competitive. Previous work has identified how companies can optimise implementation of specialist technology to improve production capability; however increasing demands in service requirements such as customisability and flexibility are often negating the localised gains in capability. Supply chain management has become an increasingly important aspect of operations improvement to ensure support throughout the product realisation process. The key to creating a supply chain capable of this rapid response and high level of adaptability is integration of intelligent systems and management capabilities. A site-visit-based survey and characterisation of small and medium enterprises (SMEs), comprising actual or potential supply chain components, reveals that even those with well developed capabilities and attitudes to adopting production technologies are largely not proactive with technology adoption targeting these needs. A review of requirements for SMEs to achieve such competitive supply chain capabilities reveals a hierarchy of technical expertise to be developed. This is presented as an implementation strategy for staged introduction of these tools and techniques with a view to establishing high-value supply chains capable of withstanding business pressures from developing economies. (c) 2008 Elsevier Ltd. All rights reserved.