Determination and exchange of supply information for co-operation in complex production networks

Today's manufacturing industry is characterised by strong interdependencies between companies operating in globally distributed production networks. The operation of such value-added chains has been enabled by recent developments in information and communication technologies (ICT) and computer networking. To gain competitive advantages and efficiency improvements such as reduced inventory and higher delivery reliability, companies are introducing information exchange systems that communicate demand to suppliers and production progress information to customers in the network. This article proposes a system that supports co-operation in complex production networks by enabling companies to determine and exchange supply information with their customers. The requirements for such a system are analysed and it is embedded in a framework of supply chain management business processes. The system facilitates the determination and exchange of meaningful, reliable and up-to-date order status information from the supplier to the customer. Based on comparing the progress of an internal production order with a pre-defined milestone model for each product, the status of the customer order is determined and—in case of lateness—communicated to the customer together with an early warning. To demonstrate the developed supply information concepts and processes, the business process is implemented as a pilot system and evaluated by the user companies participating in the 5th Framework IST project Co-OPERATE.