Store replenishment collaboration

Store replenishment collaboration Direct store delivery or retail DC-to-store delivery Mass merchants, club stores... 

In store replenishment collaboration, trading partners collaborate on store-level POS forecasts. These forecasts are then converted to a series of store-level orders, with orders committed over a specified time horizon. This form of collaboration is much harder to implanent than a DC-level collaboration, especially if stores are small it is easier for large stores such as Costco and Home Depot. The benefits of store-level collaboration include greater visibihty of sales for the manufacturer, improved replenishment accuracy, improved product availability, and reduced inventories. Smith (2013) discusses how store level collaboration allowed suppliers to Canadian retailer West Marine, Inc. to improve on-time shipments from a dismal 30 percent to over 90 percent. This allowed West Marine to maintain product availabihty as high as 98 percent... 

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... 

Actual case 2.2 In the autumn of 1996, consumer-goods manufacturers Warner-Lambert and Wal-Mart Stores initiated experimental study of Collaborative Plan, Forecast and Replenish System (CPFR). This information system will promote deeper cooperation on forecasting between dealers and manufacturers. CPFR system could feasibly exchange forecast sketches, details of future sales promotions and past sales trends, and other data. As a result, each side could more conveniently check co-related information and add new information [19]. 

Besides, Tesco introduced IT system that fostered collaborative planning, forecasting, and replenishment (CPFR) in 1999. Sharing of information using CPFR led to reduce the response time. Suppliers obtained Tesco customer needs and led to produce the appropriate goods. Thus, the use of information became more important in logistics. Tesco introduced a loyalty card and got the consumer needs from its loyalty card. Loyalty card fostered up store loyalty. 

---