B2B Integration : A Practical Guide to Collaborative E-commerce

Supply Chain Management (SCM) 421
For instance, determining the level of production and inventory
required to meet the end customer demand is a critical function. In a
collaborated supply chain, buyers and suppliers work jointly to derive
sales forecast figures by sharing demand and supply forecasts and
building production plans, based on that consolidated number.
Collaboration requires sharing real-time information on:
• Production schedules;
• Design and fulfillment;
• Procurement;
• On-hand and in-transit inventory;
• Demand forecasts and supply management; and
• Manufacturing capacities.
Integration
The SCM system of a company is functionally very closely linked to
the ERP and CRM system (see Figure 14.9). A B2Bi-enabled supply
Supplier
Relationship
Management
Material
Management
Procurement
Manufacturing
Enterprise Resource Planning
Production Fulfillment
Warehouse
Management
Transportation
Management
Inventory
Management
Enterprise Resource Planning
Supply Chain Management
Customer Relationship Management
Order
Management
Distribution
Logistics
jj Sales
:< Service
: I Marketing
Customer
Relationship
Management
Figure 14.9. — Relationship of SCM, ERP and CRM systems