The chapter-opening diagram calls attention to important points raised by
this case and this chapter. Like many other firms, Cannondale had a complex
supply chain and manufacturing processes to coordinate in many different
locations. The company had to deal with hundreds and perhaps thousands of
suppliers of parts and raw materials. It was not always possible to have just the
right amount of each part or component available when it was needed because
the company lacked accurate, up-to-date information about parts in inventory
and what manufacturing processes needed those parts.
An on-demand supply chain management software service from Kinaxis
helped solve this problem. The Kinaxis RapidResponse software takes in data
from Cannondale’s existing manufacturing systems and assembles data from
multiple sites to furnish a single view of Cannondale’s supply chain based on upto-date
information. Cannondale staff are able to see exactly what parts are available
or on order as well as the status of bikes in production. With better tools for
planning, users are able to see the impact of changes in supply and demand so
that they can make better decisions about how to respond to these changes. The
system has greatly enhanced operational efficiency and decision making