Supply chain management – everyone is
talking about it, but few companies are truly conquering the concept. Successful supply
chain management requires communication and cooperation throughout the extended
enterprise.
The Automotive Industry Action Group (AIAG)
– a not-for-profit trade association of 1,300 member companies – is working to improve
supply chain communications in the automotive industry. AIAG volunteers have identified
more than $2 billion in potential savings to the North American automotive industry just
by improving communication. These cost saving initiatives include streamlining electronic
communication and business processes as they relate to electronic commerce and CAD/CAM
data exchange. AIAG is also working to improve the efficiency and effectiveness of
electronic communication throughout the supply chain by creating a dedicated
"business" internet for the automotive industry called the Automotive Network
eXchange (ANX).
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Although a North American organization,
AIAG’s initiatives are reaching around the globe because of the worldwide business
implications for the industry.From addressing the Year 2000 problem to automotive facility
construction – communication is a critical business element that companies and individuals
must not forget.
Companies must make the effort to
communicate better with their customers and suppliers – taking advantage of today’s
technology. However, we all must remember to use technology wisely – sometimes, there is
no replacement for face-to-face interaction. Most of the problems and missed opportunities
in history relate to communication – or the lack of it.
