In spite of this inherent flawed approach, manufacturing companies have tried to improve customer satisfaction levels through better forecasting, increased inventory levels, and optimized production. Even with these best efforts, the results are frequently disappointing. 

•Many companies carry large amounts of inventory to meet customers’ changing demands, which are often based on inaccurate forecasts and result in an unwieldy number of SKUs.

•Constantly fluctuating customer demand causes operational instability and increased costs due to expediting, equipment set up, and employee overtime.

•Exceptions generated during every MRP run, creates a common and expensive problem for suppliers. These exceptions alert buyers to expedite, defer, or cancel outstanding orders.

•Exceptions are the result of changes in forecasts and planned orders fed into and manufacturer’s MRP. This constant push, pull and cancellation of orders leads to a bull-whip effect on suppliers that results in short shipments, late shipments and stock outs. 

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In an End to End (E2E) Pull system, pull loops are established between preceding and succeeding locations. This can be expanded to as many loops or tiers as needed, depending upon the business process of the manufacturer. 

An E2E Pull system allows each node to synchronize real-time production and delivery with consumption. The results included increased on-time delivery performance, reduced stock-outs, and elimination of costly last-minute change orders. In the most extensive utilization of E2E Pull, the tiers could be retailers, regional warehouses, central warehouses, distribution centers, manufacturing plants, component manufactures, 3PLs, and suppliers. 

As orders arrive, material is pulled from the end of the final assembly line, which instantly sends an order to final assembly to produce more. Simultaneously, the speed at which manufacturing facilities deplete raw materials and components drives replenishment to the upstream supply chain. 

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Establishing multiple loops beyond the manufacturing facility demonstrates physical material flows; from the time material enters the supply chain until the finished good or service is in the hands of the end customer explains the phrase, end-to-end supply chain. 

These interconnected loops control the schedule as goods move from the supplier to raw material warehouses, from raw material warehouses to the point of use; from finished goods assembly to distribution centers, and from distribution centers to the end customer. 

E2E Pull also affects business processes outside the enterprise, providing an end-to-end process view that facilitates real-time collaboration with customers and suppliers.

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E2E Pull-based supply chain management allows manufacturers to engage more fully with customers, distribution centers, retail channels and end user customers. Manufacturers gain visibility into and control over downstream demand. Manufacturers quickly sense the changes in demand and adjust production schedules to minimize redundant finished goods inventory. Basing production on real demand and moving suppliers from forecast to consumption-driven replenishment delivers multiple benefits. 

For the past decade Ultriva has been helping customers establish E2E Pull processes. The underlying methodology used to set up the pull process is collaborative Kanban. By engaging with customers such as Original Equipment Manufacturers, distribution centers, retail channels, and end-user customers, manufacturers are gaining better control over downstream demand. Ultriva allows clients to quickly sense the changes in demand and adjust production schedules to minimize redundant finished goods inventory. Ultriva offers these unique E2E pull benefits: 

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Ultriva, providers of supply chain solution software ,offers these unique E2E pull benefits: 

•Manages each production loop for lot size, lead times, safety stock and usage, dramatically reducing the production disruptions that lead to stock-outs.

•Provides a customer’s consumption patterns and the trend analysis to determine a customer’s future requirements. E2E Pull allows companies to design a supply chain and feed forecasting inputs with granular data at the execution level.

•Delivers visibility into material flows across multiple departments, including planning, purchasing, supply chain, sales, manufacturing, logistics, and executives.

•Enables manufacturers to balance supply with customer demand through procurement strategies, materials, and inventory policies tied to actual demand signals.

•Brings numerous positive effects including optimized finished goods, WIP, and raw materials inventories. There are also significant reductions in production disruptions, which lead to improved customer service satisfaction levels. 

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Please contact us if you would like to see what an End to End Pull Process can do for your business.

http://www.ultriva.com/end-to-end-pull

Ultriva, Inc.1601 S. De Anza Blvd., #165 Cupertino, CA 95014 (408) 828-8454 ultrivasales@ultriva.com

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