CPFR Collaborative Planning, Forecasting, and

CPFR (collaborative planning, forecasting, and replenishment) Implementation Software packages Forecasting software Statistical packages... 

SCM - Supply Chain Management S OP - Sales and Operations Planning VMI - Vendor Managed Inventory CPFR - Collaborative Planning, Forecasting and Replenishment ECR - Efficient Consumer Response Z - Purchasing in a single company... 

Kurt Salomon Associates, 2000, Collaborating to Meet Consumers Needs Online, Viewpoint, CPFR (Collaborative Planning, Forecasting and Replenishment), August, pp. 3—4. 

Collaborative planning, forecasting, replenishment (CPFR) Collaborative planning, forecasting and replenishment is a concept that allows collaborative processes across the supply chain, using a set of process and technology models 6-Functional supply chain processes (source and make) X 0 O X... 

Vies (2001). CPFR Collaboration planning, forecasting, and replenishment www.cpfr.org... 

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. 

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

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. 

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. 

Bullwhip effect results in poor aggregate production plans that lead to increased safety stocks, reduced customer service due to shortages, increased transportation cost, and inefficient allocation of resources (labor and equipment). By increasing the communication of actual downstream demand and collaboration between trading partners, the bullwhip effect can be minimized. One such collaborative process is known as collaborative planning, forecasting and replenishment (CPFR). Refer to the appendix in Chapter 3 of this book for a detailed description of the bullwhip effect in supply chains. 

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. 

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