B2B Integration : A Practical Guide to Collaborative E-commerce

Supply Chain Management (SCM) 419
6. Using technology across supply chain — A successful SCM is
built on strong foundation of information technology which enables
real-time information sharing and a transparent and dynamic view of
flow of products among trading partners.
7. Measuring performance through the supply chain — SCM not
only monitors the internal functions, it also enforces measures which
embrace both service and financial metrics, to every link in the
supply chain.
14.4.2. Pull-based supply network
The redesigned pull-based supply network is demand oriented and
highly efficient. Since actual consumption pulls the distribution, which
in turn guides the production and the material procurement. This paves
way for smooth replenishment, production and material supply with
consumer and retail demands.
For proper assessment and forecasting of the demand, all partners
in this chain must involve themselves. This chain works backwards,
beginning with the customer and makes the forecast for products and
the production runs (see Figure 14.7).
The future belongs to tightly integrated supply chains running from
raw-material suppliers to the consumer, with information flowing front
to back and back to front.
Consumption Distribution K
Consumer Retail
Demand
Syncronized
Replenishment
Production
Pull
Syncronized
Production
Figure 14.7. — Pull-based supply chain
Materials
Supply
Syncronized
Material Supply