Speed-to-market, agile manufacturing, and the virtual corporation — terms firmly rooted in the lexicon of U.S. business —reflect an increasing awareness that competing successfully in the global economy will require extensive changes in the way U.S. corporations operate. In most industries, rapid worldwide political and economic shifts are increasing the number and power of new international competitors. Former socialist countries are entering the capitalist marketplace with vigor. What were previously Third World countries in Southeast Asia and Latin America are producing sophisticated goods and services. These new competitors are now smarter and more productive because their managers are better educated and have technical expertise and because the rapid cross-border diffusion of information and technology gives them nearly instant access to the latest know-how and equipment.
International customers are also more sophisticated and demanding. With access to an unparalleled variety of products from all over the world, they can more easily identify value. As a result, they have become more selective purchasers. They expect quality, reliability, and competitive pricing but also want customized products that are delivered quickly.1 Much of their power lies in shifting product allegiances, which typically focus on goods that provide greater immediate value.
Although these trends have already been explored extensively, most discussions of manufacturing agility and business process reengineering focus on... To read the complete article, login or sign-up using the form below.
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