Continuous replenishment program

Integrated demand planning driven by POS customer movement data Continuous replenishment programs vendor managed inventory, telemetry to automatically communicate replenishment of chemicals 5- upply chain governance O 0 X... 

Kopanaki, E. and Smithson, S. 2002. The impact of a continuous replenishment program on organisational flexibility. In Monteiro, J.L. Swatman, P.M.C. and Tavares, L.V. (eds.). Towards the Knowledge Society ECommerce, EBusiness, and EGovernment, Springer Berlin. 

Information distortion can be dampened by practices that assign replenishment responsibility across the supply chain to a single entity. Replenishment decisions made by a single entity ensure visibility and a common forecast that drives orders across the supply chain. Two common industry practices that assign a single point of responsibility are continuous replenishment programs and vendor-managed inventories. 

In continuous replenishment programs (CRPs), the wholesaler or manufacturer replenishes a retailer regularly based on POS data. CRP may be managed by the supplier, distributor, or a third party. In most instances, CRP systems are driven by actual withdrawals of inventory from retailer warehouses rather than POS data at the store level. Tying CRP systems to warehouse withdrawals is easier to implement, and retailers are often more comfortable sharing data at this level. IT systems that are linked across the supply chain provide a good information infrastructure on which a CRP may be based. In CRP, inventory at the retailer is owned by the retailer. 

Cachon, G., and Fisher, M. Campbell Soup s Continuous Product Replenishment Program Evaluation and Enhanced Decision Rules. Production and Operations Management, 6 266—276, 1997. 

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