Monday, May 3, 2010

HARLEY-DAVIDSON�S EFFORT PAYS OFF

Some firms draw on knowledge and make it available electronically, as part of
an effort to bring enterprise efficiencies to their business allies. Harley-Davidson
took three years to develop and introduce its H-D Supplier Network. Companies
making everything from valves and gears to pedals and clamps can enter this
site and see production forecasts, account status, and two-dimensional drawings
of parts. Suppliers can also submit shipment notices and receive inventory
replenishment alerts, much faster and at less cost than previously. This portal

eliminates the expense of an electronic data interchange system and reduces the
time spent on such interactions from the typical 45 minutes to less than 15
minutes. �Nearly 300 of Harley�s 695 parts suppliers now log on to applications
through this supplier portal� (Sullivan, 2004, p. 47).
Known for its leading-edge practices, Harley has worked hard with its key
suppliers to develop systems and methods that benefit both parties. Through the
portal, which is provided to large and small firms, suppliers can manage payables
and receivables so closely that a company can get paid within seven days of
submitting an electronic invoice. On the other side, using a single material
resource planning system, Harley provides its suppliers with the kind of information
that leads to better handling of schedule changes, improved responsiveness
to the unexpected, better planned capacity, and improved delivery performance.
The parts centers, known inside Harley as Materials Velocity Centers,
are a key component of this portal access. Requirements for the several manufacturing
sites and the headquarters operation are coordinated so that a single
reliable message is relayed to those needing to know what is actually happening,
a key in any advanced-state supply chain communication network

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