Demand management CPFR

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. 

On the other hand, there are some difficulties and barriers to the implementation of CPFR, for example (1) reduced control and power if the company is using an electronic marketplace for communicating CPFR information, it may result in a loss of information control (2) problems with scalability the electronic marketplace may have difficulties to balance tailored and standardised solutions in a way that both customer satisfaction and efficiency remain high and (3) fees although the company only needs to pay for investment in one communication link (the one to the electronic marketplace), it needs to pay transaction fees or service fees to the marketplace (Ferreira et al, 2001). Sheffi (2002) addressed the perception that demand management, fulfilment, joint optimisation... 

Fig. 4.13 Vies CPFR model Demand and Supply Management...

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. 

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