In a world dominated by large corporations it is difficult for a small business owner to compete. One of the biggest obstacles every business faces is figuring out how to have an effective supply chain. With the Enterprise Integration Act of 2002, the government will support data integration between manufacturers, assemblers and suppliers and provide supply chain standards. The main improvements that standardization will bring regarding supply chain management are reduced overall costs, increased production and a higher level of quality management. The Enterprise Integration Act of 2002 proposes that the National Institute of Standards and Technology (NIST) be responsible for implementing an enterprise integration process with manufacturers aimed at increasing efficiency and reducing costs. The goal is to have a central agency that can connect and integrate small and large manufacturing companies to create a standard for electronic data exchange. “This type of integration will help large and small businesses in industrial supply chains reduce costs and design cycles” (United) Through electronic technology, companies can produce a supply chain that meets constantly changing customer demand. Creating such a supply chain requires standards and business integration. Manufacturers will need to invest in compatibility software that allows data exchange at all stages of the supply chain. “The purpose of the standards is to simplify interaction throughout the supply chain, speed up transactions and reduce inventory and delays. If a large automaker, for example, changes the design specifications of a bumper, its suppliers could quickly and easily see how the new specifications affect their components” (…middle of paper…requires $47M for help accelerate integration efforts, by Patrick Thibodeau retrieved May 27, 2012, from: http://www.computerworld.com/s/article/75092/Supply_Chain_Standards_Up_for_Federal_FundingWhy is IT spending no longer creating value?, How to start a new cycle of value creation Retrieved May 27, 2012, from: http://www.pwc.com/en_US/us/increasing-it-effectiveness/assets/it_spending_creating_value.pdf The Globally Integrated Enterprise, by Samuel J. Palmisano Foreign Affairs, May/June 2006, retrieved May 27, 2012 from: http://www.ibm.com/ibm/ideasfromibm/us/integration/010607/images/leaf1/The_Globally_Integrated_Enterprise.pdf SAP SOLUTIONS FOR ENTERPRISE INFORMATION MANAGEMENT, DATA INTEGRATION AND DATA QUALITY MANAGEMENT, retrieved May 27, 2012, from: http: //www.sap.com/solutions/enterprise-information-management/data-integration-dqm/index.epx
tags