Collaboration replenishment

Efficient Consumer Response (ECR) and Collaborative Planning, Forecasting and Replenishment (CPFR) both are operations models in the consumer goods industry to ensure delivery capability and avoid stockouts based on an automated replenishment of outlets using product inventory, historic and/or planned sales information at the point-of-sales (POS). CPFR focuses on a close cooperation between retailer and manufacturer. ECR focus on the customer-facing reaction on customer responses in logistics, sales and promotions. 

Users require collaborative tools—DSS wiU need to aUow for collaboration in the same company and across different companies. One of the first tools in this area is the forecasting portion of collaborative planning forecasting and replenishment (CPFR), which aUows partner companies to collaborate on forecasting and utilizes a DSS that assists in finding discrepancies in the process. 

World Wide Web, supported by, 246, 256 Collaborative customer/demand planning, 968 Collaborative forecasting and replenishment, 779-780, 785... 

Collaborative planning, forecasting, and replenishment (CPFR) is based on information sharing between supply ehain members in these areas to... 

CoUaborative Planning, Forecasting and Replenishment (CPFR). It means that members of the supply chain can develop, in a collaborative way, business plans and processes (Ji and Yang 2005). 

Collaborative Planning, Forecasting and Replenishment, stream consolidation, cross-docking, better traceability, etc.), it must be backed up and henceforth take in the transporters, warehouse operators and the small and medium-sized industries hitherto not generally incorporated in this approach. 

Collaborative Planning, Forecasting and Replenishment Voluntary Guidelines Roadmap to CPFR, VICS, 1999. 

Under Collaborative Forecasting, Planning, and Replenishment (CPFR), the retailer shares with the manufacturer the logjc associated with the order, so as to permit store-level monitoring of stock avadabihty and improved performance. Under CPFR, along with a retailer order, retailers submit both retail orders as well as logic for each order. This logic will... 

If it were based on effort, the relationships should be stronger. There is no supply chain that has sponsored more industry programs to build value chain collaboration than the consumer-driven value chain. They were many. Over the last 10 years, there have been a myriad of programs to improve collaboration BCR, collaborative forecasting and replenishment, the Voluntary Inter-industry Commerce Solutions Association, and the Foundation for Strategic Sourcing Association. However, the industry has made little progress. There are four fundamental issues ... 

In this section, it will be performed a literature review for each one of the four categories of the Demand management - Statistical Forecast, Sales and Operations Planning (S OP), Collaborative Plaiming and Forecasting Replenishment (CPFR) and Vendor managed Inventory (VMI). This review allowed identify the DDSC characteristics for each category which was used to develop the five level maturity model. 

For people driven forecast, it is suggested to apply Sales and Operations Planning (S OP) and Collaborative Planning and Forecast Replenishment (CPFR), as they represent structured and formal processes to align demand figures across different functional areas and different organizations. 

The CPFR model has a general framework, illustrated in Fig. 4.13, by which a buyer and seller can use collaborative planning, forecasting, and replenishing processes in order to meet customer demand. To increase performance, the buyer and seller are involved in four collaboration activities that are fisted in logical order, but companies often engage in these activities simultaneously. 

Sales forecasting, which projects point-of-sale consumer demand, is one of the collaboration tasks associated with this activity. The retailer task here is Point of Sale (POS) Forecasting and the manufacturer task is Market Data Analysis. The other collaboration task is Order Planning/Forecasting which uses factors, such as transit lead times, sales forecast, and inventory positions to determine future product ordering and requirements for delivery. The associated retailer task is Replenishment Planning, and Demand Planning is the associated manufacturer task. 

The first collaboration task under the Execution activity is Order Generation. This task transitions forecasts to demand for the firm. The retailer task related to this collaboration task is Buying/Replenishing, and the manufacturer task is Production and Supply. The second collaboration task is Order Fulfillment, and this is the preparation of products for customer purchase through the process of producing. 

Table 4.4 shows the four key areas covered in the VICS assessment and illustrates the increasing difficulty and benefits of progressing vertically through the processes of Collaboration to Integrated Planning and Forecastii to Replenishment and finally to Supply Chain Management. 

Category Collaborative Planning and Forecast Replenishment (CPFR)... 

The first generation of the CPFR process had nine tasks in its generic business model that trace the collaboration process between manufacturers, retailers, and distributors. The nine steps, listed in Table 3.5, provide a flavor for the overall CPFR approach. The first two steps are planning-, the next six are forecasting-, the last step is replenishment. 

Throughout this book we have described the barriers to more effechve supply chains. We have also described many of the tools and techniques that address this barrier. For example. Section 3-7.2 describes a eollabo-ration effort called Collaborative Planning Forecasting and Replenishment, CPFR for short. CPFR requires a business relationship between partners and has taken root in the retail industry. Collaboration strives to better match demand and supply, improve inventory management practiees, and capitalize on new systems through sharing. CPFR is primarily a link between retailers and their manufacturer suppliers. However, it is expected that the CPFR concept will expand to other industries. 

CPFR Collaborative Planning Forecasting Replenishment. A set of business processes used for supply chain coUaboration. The term is a trademark of the sponsoring organization, the Voluntary Interindustry Commerce Standards (VICS) Association. 

Partnering A management approach used by two or more organizations, often, but not always, a buyer and a seller, to achieve mutual business objectives by maximizing the effectiveness of each partner s resources. Partnerships can take a number of forms, from arm s length sharing of information to acquisition. Examples include collaboration in design, measures to reduce cost, and simplified replenishment procedures. 

Vendor- Managed Inventory (VMI) Vendor- Managed Replenishment (VMR) The practice of partnering between distribution channel members that changes the traditional replenishment process from distributor-generated purchase orders, based on economic order cjuantities, to the replenishment of products based on actual and forecasted product demand. Source CRP Best) A process by which a supplier automatically replenishes customer stock based on actual sales or shipments. Also called continuous replenishment. (Adapted from APICS Dictionary, 10th edition) Some practitioners view VMR as an enhancement of VMI, requiring more collaboration. 

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