Benefits of electronic collaboration

Nestle UK states that the advantages of collaborative systems are significant, and lists the following benefits  

Many of these benefits are being experienced by those implementing the CPFR philosophy. Wal-Mart and Sara Lee experienced sales increases of 45 per cent and a decline in weeks-on-hand inventory of 23 per cent. The benefits experienced by Procter Gamble and its retail partners include a reduction in replenishment cycle time of 20 per cent. The increased visibility of the supply chain resulted in a reduction of in-store availability from 99 to 88 per cent being detected with sufficient lead time to respond. This saved three to four days of stockouts for the retailer. Forecast accuracy improvements of 20 per cent have also been experienced. 

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Benefits of electronic collaboration listed by Nestle UK include improved availability of product to the consumer, and hence more sales. The total service is improved, total costs are reduced (including inventory, waste and resources), and capacities can be reduced owing to the reductions in imcertainty achieved. In addition, processes that span two or more companies become far more integrated and hence simple, standard, speedy and certain. Trading partners become more committed to the shared plans and objectives. 

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