Manufacturers that hope to differentiate themselves from rivals emerging all over the planet might think carefully about ways to integrate their supply and demand chains. Indeed, a few smart companies have linked their supply chain management (SCM) and customer relationship management (CRM) systems in order to provide visibility across the extended enterprise – and compete in an agile, dynamic fashion.

Critical to success in manufacturing is having insight into customer demand. "By connecting CRM and SCM, you can really change how you do inventory management and how you produce your product," says Steve Pratt, partner and former global CRM practice leader for Deloitte Consulting in San Francisco in a recent story in Industry Week. "In the late 1990s, a lot of companies put in enterprise resource planning, SCM and CRM systems, but they still run their businesses in the same ways as before. We still find islands of activity -- such as people who only deal with customers, and people who manufacture and distribute products."

The objective is to have insights, requests and orders ripple backward into one’s manufacturing facilities and supply network. "You can dynamically configure your production scheduling so that you treat your best customers better," Pratt contends.

Unfortunately, few companies have made all the connections and interconnections necessary to manage customer opportunities with great precision. One of them is Zeeland, Michigan-based Herman Miller Inc. The office furniture manufacturer has tailored its Web pages, called EZ-Connect, to ensure its most valuable customers are able to place orders at special rates.

According to Deloitte Consulting, manufacturers can differentiate themselves and their supply chains through real time response to individual customers based on their profitability and potential value. "Manufacturers that can do this -- and they are a distinct minority today -- are significantly more profitable than those that lag behind," states a report on "Digital Loyalty Networks" by Deloitte Research. "There aren't many companies with this connection," says Deloitte's Pratt. "It hasn't happened yet, but it's inevitable it will happen if manufacturers want to retain their best customers and increase the efficiency of their assets."