Why manufacturers should integrate with the demand side to streamline their supply chain with an End to “End (E2E)” pull replenishment process. The primary goal of the E2E process is to schedule manufacturing production based on customer demand instead of forecasts while raw materials usage should drive replenishment to the upstream supply chain. This is also commonly known as “consumption driven replenishment” or “Electronic Kanban loops”.

1. Why a Cloud Solution is the Only Way to
Implement an E2E Pull

2. E2E Pull
Gartner, Inc. (NYSE: IT), the world's leading information
technology research and advisory company, has made
a compelling case as to why manufacturers should
integrate with the demand side to streamline their
supply chain.
They call this process as “End to End Pull (E2E)”
replenishment. This is clearly a paradigm shift
compared to the constant focus on improving the
planning or forecasts using better and superior
algorithms.
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3. E2E Pull
In its simplest form, Gartner is recommending the following model:
As shown above the pull loops are set up between the preceding and succeeding
locations. This can be expanded to as many loops (tiers) as necessary depending
on the business process of the manufacturers. For example, in the most extensive
situation the tiers could be Retailer, Regional Warehouses, Central warehouses,
Distribution centers, manufacturing plants, component manufactures, 3PLs,
suppliers etc.
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4. E2E Pull
The primary goal of the E2E process is to schedule
manufacturing production based on customer demand
instead of forecasts while raw materials and components
usage at the manufacturing facilities should drive
replenishment to the upstream supply chain. This is also
commonly known as “consumption driven replenishment”
or “Electronic Kanban loops”.
Underlying the above process is an ability to have real time
collaboration with the customers and suppliers. Onpremise solutions, like MRP and ERP, do a fabulous job for
inside the four walls of business. E2E on the other hand
deals largely with outside the four walls of business.
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5. E2E Pull
What are the minimal requirements for a
solution to establish the E2E process?
• A collaborative transactional portal that allows a manufacturing
company’s customers and suppliers to interact in real time.
• Allow customers to send their demands, forecasts, plans and real
time consumptions
• Allow suppliers to receive their purchase orders, Kanban signals,
forecasts and MRP releases electronically through a portal
• Allow suppliers to print bar coded or RFID tagged labels for
shipments
• Allow customers and suppliers to view respective performance levels
• Allow right sizing of inventory at each transaction points based on
actual usage.
• Provide guidance to improve inventory velocity at the finished goods
and raw materials
• Provide seamless interfaces to company’s ERP/MRP systems for
keeping the data in sync.
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6. E2E Pull
How does the E2E process
improve your business?
• Allows manufacturing companies to reduce the customer lead times while
improving service levels
• Carry the right mix of inventory to eliminate part shortages for the
production
• Gain multi-tier visibility across the supply chain
• Improve inventory turns across Finished Goods, Work In Process and Raw
Materials
• Get actionable information to manage exceptions
• Facilitate continuous improvement through real time metrics and analytics
• Ability to resize the inventory levels based on change in demands and
usage
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7. E2E Pull
Ultriva has deployed this type of Cloud
solution to many large customers worldwide.
If you are interested in understanding
what is the E2E process or wish to
integrate your customers and
suppliers, as well as optimize your
supply chain, please contact Ultriva.
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