The First Requirement for E2E

Last week, I wrote a blog highlighting the clear need for a cloud-based SaaS solution to establish the “End to End Pull” process across manufacturing companies (or E2E pull process or just E2E). In that blog, eight basic requirements for developing an E2E pull model were listed. 

Gartner, Inc. (NYSE: IT), (www.gartner.com), 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. 

Lean in its purest form is removal of waste. In today’s world, manufacturing is becoming more competitive than ever with shorter lead times, higher service levels, exploding number of finished goods SKUs, and thinning margins. Over the last twenty years, the focus of lean in manufacturing was concentrated on streamlining the factory floor, aligning of production lines, optimization of space, and standardizing of operating procedures.

Recently when I was walking through raw material warehouse at a manufacturing facility, I was reminded of the famous verse from “The Rime of Ancient Mariner”, which I had read over 30 years back;

Water, water, everywhere,
And all the boards did shrink;
Water, water, ever where,
Nor any drop to drink

I could metaphorically relate this to the filling of warehouses with bloated inventory while encountering production stoppages due to non-availability of parts.

Recently, Digital Supply Chain magazine reported that while new technologies are critical, they are not the only requirements for an advanced demand-driven supply chain, according to experts at The Boston Consulting Group.

-Only when Combined with Driver Based Metrics, Information Sharing and Visibility

A new white paper offered through Supply Chain Management Review suggests that a product begins its life with maximum profit potential during the manufacturing process. But as that product moves through an increasingly complex, global supply chain, excess time and handling costs erode its profit.  The author continues to point out that the average supply chain has become segmented, with different groups managing different phases of the product lifecycle in isolation. While this may add functional efficiency in specific areas, I feel the lack of a coordinated approach creates a less efficient supply chain overall. A more holistic, synchronized approach to managing logistics and related supply chain services throughout a product’s lifecycle is better suited to today’s companies. 

Every day I walk through the lobby of Ultriva and pass a table laden with the latest Supply Chain Magazines. When I open my inbox, I am swamped with many more email notifications for supply chain and manufacturing news from magazines online. So for an article to resonate with me, it must speak to an issue relevant to Ultriva, particularly one that we solve.

As part of my marketing job with Ultriva, I get to peruse the headlines for manufacturing news. I happened to notice the roster of Manufacturing Day 2013 sponsors recently added four more key support organizations. The Precision Metalforming Association (PMA) and the Association for Manufacturing Technology (AMT) are both joining, along with Women in Manufacturing (WIM) and the Precision Machined Products Association (PMPA). That is great news for the backers of Manufacturing Day, now in its second year.

Material Handling Industry (MHI), the leading trade association for the material handling, logistics and supply chain industry, recently reported that when it comes to supply chain risk, firms need to peel the onion past their tier-one suppliers to get the complete picture. Referencing a recent study by Resilinc Corp., leading global supply chains have become dependent on the same small group of sub-tier suppliers – concentrating risk and increasing the potential for supply chain disruptions.

Start with Customer Relationship Management