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consequences. The result is typically excess in-
ventories, too long lead times, too low customer
satisfaction and poor resource utilisation.
Supply networks are dynamic and hard to
define, and a single company is often part of
several different supply networks simultaneously.
An increasing level of customisation combined
with demands for high quality, low costs, short
and precise delivery times, and high flexibility
represents a significant challenge to managing
operations in networks.
Although these challenges will apply to com-
panies of all sizes, they are particularly true for
SMEs due to the following characteristics:
approach to existing APS solutions is presented,
and finally the approach is positioned in a broader
perspective titled “Work Bench Concept” to be
used in both SMEs and larger enterprises.
coLLAborAtion in non-
hierArchicAL netWorks
Typical for SMEs is that they operate in non-
hierarchical networks, characterised by power
being distributed among members, and the absence
of one or several dominant actors that dictate
plans or impose a centralised planning perspec-
tive (Harland et al., 2001). In such networks each
member participates in multiple supply chains
and all members are more or less equal in status
and therefore no member has the power to dictate
the others (Jagdev and Thoben, 2001). The core
part of each network might form what could be
titled as a Virtual Enterprise to share skills or core
competencies and resources in order to better
respond to business opportunities.
Coordination and collaboration between the
companies is vital in such networks. Collaboration
refers to the activities and environment related to
the “joint planning and execution of supply chain
activities” (Ayers, 2006), and is therefore an es-
sential element in planning activities in a network
perspective. Collaboration is using cooperative
efforts in order to meet mutual goals, exchanging
information, developing improvement in partner-
ship (Ayers, 2006). A manufacturing network is
fully coordinated when all decisions are aligned
to accomplish global system objectives (Sahin
and Robinson 2002); of course when this occurs
decisions have already crossed the company's
boundaries, meeting articulated and complex
contexts (Danese et al., 2004). Several collabora-
tive models for coordination networks activities
have been developed. The aim of models such as
collaborative planning, forecasting and replenish-
ment (CPFR), vendor managed inventory (VMI)
and automated replenishment programs (ARP) is
•
The network are typically non-hierarchical
•
They have limited staff available for spe-
cialist roles in planning and decision
making
•
They have limited resources available to
invest in Advanced Planning Systems
•
They require flexible tools which let them
exploit the advantage of typically being
flexible and easier to manage than larger
enterprises
Observation shows that information exchange
is often limited to order placements without any
kind of information visibility or other communi-
cation between network partners. Thus network
effects of individual decisions are often not pos-
sible to neither intercept nor predict. This implies
that planning and control at any network partner
is currently executed with incomplete information
about status among the other network partners and
without the possibility to see the full consequences
of decisions being made. Additionally, the plan-
ning and control task will vary with regards to
scope and complexity challenging the traditional
planning and control approaches, and existing
methodologies, tools and knowledge.
The paper briefly discusses three major areas
for manufacturing in non-hierarchical networks.
After this a more simple and adaptive alternative
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