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Date : 2003-05-09
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Collaborative Planning Forecasting Replenishment CPFR ~ One of the key enablers of efficiencies and improvements across supply chains is to create and use collaborative planning forecasting and replenishment CPFR strategies across organizations’ boundaries
Collaborative Planning Forecasting and Replenishment ~ Their awareness gave rise to Collaborative Planning Forecasting and Replenishment an endtoend supply chain scheme designed to close the loop in the consumergoodstoretail supply chain Over the years makers and sellers have together made astonishing advances in communication logistic optimization cost reduction and product availability
Collaborative planning forecasting and replenishment ~ CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain Information shared between suppliers and retailers aids in planning and satisfying customer demands through a supportive system of shared information
Introduction Collaborative Planning Forecasting and ~ Collaborative Planning Forecasting and Replenishment CPFR CPFR is a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand Links sales and marketing best practices to supply chain planning and execution processes Objective is to increase availability to the customer while reducing inventory transportation and logistics costs
Collaborative Planning Forecasting and Replenishment CPFR ~ Collaborative Planning Forecasting and Replenishment CPFR Process Model Strategy Planning – Establish the rules for collaborative relationship Demand and Supply Management – Project Execution – Place orders prepare and deliver shipments receive and stock products in
Collaborative planning forecasting and replenishment ~ The process known as Collaborative Planning Forecasting and Replenishment CPFR is supply chain management taken to the extreme
Supply Chain Management Collaborative Planning and ~ CPFR Collaborative planning forecasting and replenishment extends vendor managed inventory principles and is the latest stage in the evolution of supply chain collaboration Older supply chain initiatives have gaps in their practices As in many operations financial plans take precedence over forecasting resulting in high inventory levels lower order fill rates and increased expedited activities
Collaborative Planning Forecasting and Replenishment CPFR® ~ Forecast Orders The aggregated consumer forecast drives a coordinated effort to create a supply plan that supports the designated level of sales In todayʼs environment the demand and supply is matched by plan ning the customer order flow and finished goods inventory flow into distribution centers
CPFR Model 2 Demand Supply Management Collaborative ~ Sales forecasting Projects demand at the point of sale Order planning forecasting Determines future product order delivery requirements based upon the sales forecast Takes into account inventory positions transit lead times shipment quantities and other factors
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