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IP networks cope best with JIT, says report
An
IDC product story
Edited by the Manufacturingtalk editorial team
Feb 28, 2006
Research statistics point to a wholesale shift to IP-based networking within manufacturing as IP is far better suited to supporting complex real-time needs of JIT planning and lean processes.
A research paper published by IDC and sponsored by Easynet revealed striking evidence of European manufacturers' planned exodus from legacy networks such as Frame Relay and ATM to next-generation IP networks.
The paper entitled 'IP in Manufacturing' drew on research from 660 companies, 148 of which were manufacturers.
The full paper can be obtained at The report cited a number of business drivers for European manufacturers including the need to achieve global execution in a rapidly changing environment, ensure product quality standards in the face of increasingly complex supply chains and improving demand planning and inventory optimisation. One of the most striking findings in the research was that 38% of manufacturing companies that currently use frame relay plan to terminate that service within a year. 18% of manufacturing companies that do not use an IP VPN service plan to start using one within a year. The research also revealed that among the manufacturers interviewed, growth for 'DIY' networks - in-house managed networks based on secure tunnelling over the public Internet - is stalling with 4% net attrition expected next year. This is due to the significant problems they pose, particularly to manufacturers. More than twice as many manufacturing companies reported problems of poor service from local ISPs as did organisations in other verticals. This problem multiplies for geographically dispersed manufacturers who need to work with a diverse set of ISPs in different countries to support their DIY network. Jill Ainscough, Easynet's managing director, commented: "Geographically dispersed by nature, manufacturers are faced with a set of unique business challenges. To stay ahead of competition, improve cost control and achieve growth, manufacturers need to be agile, responsive and streamlined. It is clear that an IP network is now the foundation for them to achieve this, rather than an old-fashioned legacy network. Whether manufacturers decide to manage their own network or outsource, it is important for them to look for a network provider that can work alongside it as a strategic business partner." Easynet's manufacturing customers include Ford Motor Company, Kohler Mira, Applied Biosystems and Bravilor Bonamat.
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