Technological innovation within the supply chain

This paper considers how manufacturing companies within the supply chain are increasingly expected to provide technologically innovative solutions, rather than simple components. Large global companies are becoming system builders, but as they devolve greater responsibility for technology to suppliers, they are also squeezing cost and timescales. Planning for specific future technology requirements is becoming less relevant to the system builders, but is not a process widely recognised by suppliers. Small suppliers do not have the resources which the large, vertically integrated firms used to command. Technological innovation will however be necessary for the continuing and future success of the whole supply chain.