Case Study:
ERP Enables Agility, a Competitive Asset for Manufacturers
The first step toward becoming an agile manufacturer is developing the means to monitor the marketplace; for instance, changes in customer demand or competitors’ actions, and to respond to it quickly. ERP software brings all areas of the manufacturing operation into a single, real-time database where the actions of one department do not happen in isolation, but rather are known throughout other departments. As a result, all departments are aware of what’s going on within the company and are capable of responding quickly to customer demands. Manufacturers that have invested in ERP to become agile are able to leverage their insights into new products and services for their current customers and prospective ones—and to counteract competitors’ attempts to steal away their customers. While agile manufacturing is not widespread, early adopters are reaping the benefits. An example is Humanetics (humanetics.com), a Texas-based precision metal works company with four geographically dispersed plants. Humanetics’ ERP system serves the following functions:
• Supports estimating and quoting processes
• Supports parts’ manufacturing, shipping, invoicing, and payment collection
• Prepares financial statements
• Manages the day-to-day international movement of parts, quality control, and on-time delivery In a global economy, windows of opportunity open quickly and can close just as fast. The more agile and aware the manufacturer, the greater the rewards from being the first responder to customer needs.
Q1. What competitive advantages does agility provide to a manufacturing company?
Q2. Are those competitive advantages sustainable? Why or why not?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.