Only few companies have developed Internet-based integration of manufacturing and ERP-systems. Full-scale “virtual factory”-relationships seem most advanced between “fabless” OEMs and CMs (see Table 1). Cisco´s manufacturing organization can be considered a leading-edge model. The assembly of Cisco routers, switches etc. is integrated into an order and resource planning system which is entirely based on Internet-standards. Major contract manufacturers are part of this arrangement. They also manage delivery and repair services, offering a seamless interface to the Cisco customer. A major CM is operating a manufacturing plant fully dedicated to Cisco product lines. The virtual integration of this plant into the Cisco organization has to be secured by a sophisticated control system for manufacturing data on the part of Cisco and through a high degree of personal interaction between engineers of both companies, supported by the physical proximity of the respective operations in Silicon Valley (Roberts 2000).

However, plants that are operating within an Internet-based “virtual factory” framework do not differ significantly in their work organization from more conventional ones. Given the high degree of control over manufacturing data that existing IT-networks offer to OEMs, tighter control of the shop-floor through Internet-based data networking does not seem very likely. As opposed to traditional subcontracting arrangements, OEMs clearly tend to leave the management of the labor process to their manufacturing partners. The most important impact of the Internet on shop-floor conditions, therefore, may probably be indirect: the expansion of e-commerce related configured-to-order manufacturing is likely to increase the pressure to flexibilize work and employment (Lüthje/Schumm/Sproll 2002).

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