1

1. Before synchronisation

Tier 2 OEM CustomerTier 1

2. After synchronisation

OEM

Tier 1

Tier 2 Tier 2

Tier 1

Customer

Customer

Key : OEM – Original Equipment ManufacturerTier 1 & 2 – Supplier echelons

Achieving synchronisation through shared information

2

(1) Daily sales data drives the replenishment order system

Supplier

Store

Supplier Supplier

SupplierSupplier

Store

Store

Store

StoreHeadOffice

LogisticsService

Company

Synchronous supply and cross-docking

3

(2) Acting on this information a consolidated pick-up and store deliverysequence is activated

Scheduledpick-ups fromsuppliers

Supplier

Store

Supplier Supplier

SupplierSupplier

Store

Store

Store

Store

LogisticsService

CompanyTranshipmentcentre

Consolidatedlocal delivery

Synchronous supply and cross-docking