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Editorial from the December 2007 issue of Managing Automation

An Intelligent Response

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Abstract:To respond effectively to customer demand, manufacturers operating globally need well-informed managers with access to sophisticated supply chain tools.
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Globalization and pervasive outsourcing have turned supply chains into vital links in the response to customer demand. The ability to adapt to cycles of change in supply requires vision beyond what's visible.

We all know from high school physics that for every action, there is an equal and opposite reaction. The consequences of our actions build over time to become the equal and opposite reactions that Isaac Newton noted. These days, we call this the "tipping point." An example is the tilt point when the manufacturing business shifted from a mass manufacturing push strategy to a customer-driven pull strategy. So now we might ask: What will be next?

The notion of the tipping point came up in an extended conversation with Kinaxis Corp. (formerly Webplan) CEO Douglas Colbeth. Kinaxis offers response-driven software, geared to adjust to constantly changing demands. Kinaxis' tools are part of what might be called the reaction to the initial actions of globalization and outsourcing. The company offers management new levels of visibility into the supply chain, and constant change is coupled with collaborative analysis tools that then respond to the changes. This is not simply another kind of supply chain or business planning methodology.

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