Situation:In order to compete with Asia and the United States, it is essential for the European electronics industry to capitalize on opportunities for streamlining the supply chain through shared knowledge, collaborative decision making and cultural understanding.
The Details:To address the issue, the industry has already formed a number of non-hierarchical networks that inherently require greater collaboration at the tactical and strategic management level, which in turn requires a new level of data and information sharing between network partners. ERP systems provide an adequate view of operations and can be used to build links to other companies -- where they fall short is in providing transparency at the strategic and tactical planning levels -- and that is exactly what Fortunato Cartolano and other electronics industry experts are addressing with a research and development project dubbed "CONVERGE."
What it Means:The CONVERGE project brings a consortium of experts, representing the European electronics industry, academia and technology providers, together as part of a research effort aimed at closing the gap by providing a framework and tools for exchanging tactical and strategic information necessary to make informed decisions.
In approximately five years, the expected cost savings is anticipated to be in the neighborhood of 180 Mio. € (~$248 million)-- assuming a diffusion rate of 10% of the 600 European Electronic Manufacturing Service companies