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(a)

(b)

Manufacturer

Distributor

Retailer

Customer

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Part 2  Strategy and applications

The alternative approach consistent with ECR is the 

pull model

, which is focussed on the 

customer’s needs and starts with analysis of their requirements through market research and 

close cooperation with customers and suppliers in new product development (Figure 6.7(b)). 

Here the supply chain is constructed to deliver value to the customer by reducing costs and 

increasing service quality. Figure 6.7(b) shows how there are much closer links between the 

elements of the supply chain through use of technology such as EDI to minimise document 

transfer and rekeying. The typical motivation for a pull approach is to optimise the produc‑

tion process for customer response, cost and efficiency. Such an approach is also consistent 

with management thinking about the similar concept of the value chain as illustrated in the 

‘Focus on The value chain’ section.