What is the main advantage of collaborative forecasting planning and replenishment?
|
Collaborative Planning, Forecasting and Replenishment (CPFR), is a business concept that aims to enhance supply chain efficiency and integration by supporting joint practices and coordinating activities throughout the supply chain. CPFR
is a supply chain model where a business implements plans with its suppliers/customers to optimise their supply chains. It enables inventories to be moved more efficiently, in the correct quantities, to the correct locations in order to meet customer demand. The CPFR model establishes a common language, common processes and common metrics to assist the supply chain partners to achieve these goals. Collaborative Planning, Forecasting and Replenishment (CPFR) describes a set of practices in which trading partners plan key supply chain activities to efficiently meet customer demand at the lowest possible cost. This collaboration typically includes business planning, sales forecasting, and replenishment of raw materials and finished goods. Meant to reduced silos, CPFR streamlines multiple S&OP processes and supply chain planning activities, reduces inventory and logistics costs, enhances end-to-end supply chain efficiency and optimizes inventory movement. CPFR establishes common processes and metrics to help supply chain trading partners achieve their common goals. Improved communication, collaboration and information sharing are vital to ensuring the successful implementation of this strategy. Learn more about the supply chain software and supply chain services offered by GEP What is CPFR? DescriptionCollaborative Planning, Forecasting, and Replenishment (CPFR) is a collaborative business practice that enables partners to have visibility into one another's demand, order forecast and promotional data to anticipate and satisfy future demand. This is done through a systematic process of information and knowledge sharing. CPFR links sales and marketing best practices, such as category management, to supply chain planning and execution processes. In this way product availability can be increased while reducing inventory, transportation and logistics costs. CPFR goes beyond current internal system implementations and builds the next level of information sharing out to trading partners. The objective often is to foster a strategic partnership and establish an enabling process for all other supply chain improvement initiatives. CPFR leverages existing investments in Warehouse Management Systems (WMS), Forecasting / APS systems, Enterprise Resource Management (ERP) systems, Materials Requirements Planning (MRP) systems, and Customer Relationship Management systems. The CPFR Reference ModelThe CPFR Reference Model (figure) can be applied to many industries. A buyer and a seller, as collaboration participants, work together to satisfy the demands of an end customer, who is at the center of the model. In the retail industry, a retailer typically fills the buyer role, a manufacturer fills the seller role, and the consumer is the end customer. In other industry segments, such as high technology, the collaboration participants may differ. Origin of CPFR. HistoryCPFR was originally initiated in 1995 by Wal-Mart, Benchmarking Partners, SAP and Manugistics. The open source initiative was initially called CFAR (for Collaborative Forecasting and Replenishment, pronounced as See-Far). Warner Lambert (now part of Pfizer) served as the first pilot for CFAR as one of Wal-Mart�s key suppliers. The results were announced in 1996 and presented to the Board of Directors of the Voluntary Interindustry Commerce Standards (VICS) Committee. VICS established an industry committee to prepare for rolling CFAR out as an international standard. Later on the standard was renamed CPFR to emphasize the role of planning in the collaborative process. Since the publication of VICS Guidelines for CPFR in 1998, over 300 companies have implemented the process. In 2004, the VICS CPFR committee developed a major revision of the CPFR model to integrate innovations and overcome shortcomings identified in the original process. Steps in CPFR. Process
Strengths of CPFR. Benefits
Limitations of CPFR. Disadvantages
Assumptions of CPFR. Conditions
Book: - Voluntary Interindustry Commerce Standards (VICS): CPFR: An overview, 2004 Book: - Industry Directions Inc. and Syncra Systems Inc.: The Next wave of supply chain advantage: Collaborative planning, forecasting and replenishment, 2000 Supply Chain Planning (CPFR) Special Interest Group.
Special Interest Group (127 members)  Forum about Supply Chain Planning (CPFR).
The best, top-rated topics about Supply Chain Planning (CPFR). Here you will find the most valuable ideas and practical suggestions. Advanced insights about Supply Chain Planning (CPFR). Here you will find professional advices by experts.
Compare with CPFR: 3rd Party Logistics (3PL) | Vendor Managed Inventory | Inventory Management | Just-in-time | RFID Technology Return to Management Hub: Supply Chain & Quality More Management Methods, Models and Theory What is the need for collaborative planning forecasting and replenishment strategies?Collaborative Planning, Forecasting and Replenishment (CPFR) is an approach which aims to enhance supply chain integration by supporting and assisting joint practices. CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain.
What is collaborative forecasting and why is it so important in demand management?Collaborative forecasting or forecast collaboration makes use of available information and latest technology to force a shift from independent, forecasted demand to dependent, predictable demand. This essentially implies real-time information sharing about demand among supply chain partners.
What is collaborative planning forecasting and replenishment function in the planning and process between supply chain partners for demand fulfillment activities?Collaborative Planning Forecasting and Replenishment (abbreviated as CPFR) is a joint strategic practice amongst partners in a supply chain to utilize customer inputs and data from partners in the value chain whilst producing forecasts, planning resources and replenishment policies of stocks.
What are the key features of CPFR?What are the key features of CPFR? One of the main CPFR features is joint visibility and product replenishment through the supply chain. The information is shared between partners – suppliers and retailers – in order to plan end-customer demands and therefore improve supply chain effectiveness.
|
