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  Data standardisation and exchange 

 The difficulties of exchanging information between incompatible systems has been a barrier 

limiting the adoption of SCM. Successful online marketplaces such as Elemica within the 

chemical industry have been based on collaboration between a limited number of partners 

  Supply chain management implementation 

 Figure 6.14 

 A  typical  IS  infrastructure  for  supply  chain  management       

Procurement

Supply chain

execution systems

Manufacturing

Network

optimisation

Supply chain

planning systems

Manufacturing

planning (MRP)

Warehouse

management

Supply

planning

Order

processing

Demand

planning

Distribution

Data

warehouse

(tactical)

Enterprise

Resource

Planning

database

(operational)

Forecasting, monitoring and alerts

delivered by intranet and extranet

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Chapter 6  Supply chain management

within a vertical sector. But for markets with a more diverse range of products, standardi‑

sation is more difficult. GDSN is a more recent development which should help accelerate 

adoption of e‑SCM (see Box 6.4).

Some of the benefits of this approach for retailers identified by Schemm et al. (2007) 

include:

● 

Order and item administration improved by 50%.

● 

Coupon rejection at the checkout reduced by 40%.

● 

Data management efforts reduced by 30%.

● 

Improvement of on‑shelf availability, with out‑of‑stock items reduced from 8% to 3%.