Programs ("CIP"), manufacturers are asking their suppliers, as a part of the
supplier selection process, to provide capabilities where the manufacturer need
not own, or even possess, inventory prior to the exact moment that unit of
inventory is required as a raw material component or for shipping to a customer.
To be successful for all parties, business models such as these often require a
sophisticated collection of technological capabilities that allow for complete
integration and collaboration of the information technology environments of both
the buyer and supplier. For example, in order for an inventory unit to arrive at
the precise required moment in the manufacturing facility, it is necessary for
the Manufacturing Resource Planning ("MRP") systems of the manufacturer to
integrate with the CRM systems of the supplier. When hundreds of supplier
partners are involved, this process can become quite complex and technologically
challenging. Buyers and suppliers are seeking solutions that utilize XML based
protocols like Biztalk, RosettaNet and other traditional EDI standards in order
to ensure an open systems platform that promotes easier technology integration
in these collaborative solutions.
GOVERNMENT OUTSOURCING TREND
The United States government has increased its focus on streamlining work
efforts and reducing overall governmental costs, which has led to further
evaluation of outsourcing as a possible avenue to achieve these goals. The
federal government formulated an E-Government strategy in 2002, which was
created to support multi-agency projects that improve citizen services and yield
performance gains. Also, recent revisions to government mandate A-76 state that
Government agencies must conduct thorough audits to determine the lowest cost
and most efficient method of doing business, and to outsource to the public
sector when in-house operations are unable to compete.
As stated in the February 2002 E-Government Strategy document developed by
the U.S. Office of Management and Budget (OMB) E-Government task force, the
primary goals for this initiative are to:
o Make it easy for citizens to obtain service and interact with the
federal government;
o Improve government efficiency and effectiveness; and
o Improve the government's responsiveness to citizens.
According to the Budget of the United States Government, fiscal year 2004,
the federal government's investment in information technology (IT) is estimated
to be increased to $59 billion for 2004 versus the 2003 budget request of $53
billion. This increased level of IT spending provides enormous opportunities for
the government to transform itself into a citizen-centered E-Government and
provides additional opportunities for the government to work with the public
sector to develop more user friendly methods of interaction. Past
agency-centered IT approaches have limited the government's productivity gains
and ability to serve citizens. With this initiative, the federal government is
poised to transform the way it does business with citizens through the use of
E-Government.
The 2002 E-Government strategy document goes on to state, "E-Government
provides many opportunities to improve the quality of service to citizens.
Citizens should be able to get service or information in minutes or hours,
versus today's standard of days or weeks. Citizens, businesses and state and
local governments should be able to file required reports without having to hire
accountants and lawyers. Government employees should be able to do their work as
easily, efficiently and effectively as their counterparts in the commercial
world. Effective execution of this strategy are targeted to:
o Simplify delivery of services to citizens;
o Eliminate layers of government management;
o Make it possible for citizens, businesses, other levels of government
and federal employees to easily find information and get service from
the federal government;
o Simplify agencies' business processes and reduce costs through
integrating and eliminating redundant systems;
o Enable achievement of the other elements of the President's Management
Agenda; and
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