collaborative planning, forecasting and replenishment
Post on 12-Apr-2015
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INTRODUCTIONCPFR – Collaborative Planning, Forecasting and Replenishment – is a cross-industry initiative designed to improve the supplier/manufacturer/retailer relationship through co-managed planning processes and shared information. It is an integrated supply chain method to improve efficiency through direct collaboration between all trading partners with the ultimate focus on the consumer.
STEPS OF CPFR:The 9 steps were: Develop Front End Agreement Create the Joint Business Plan Create the Sales Forecast Identify Exceptions for Sales Forecast Resolve/Collaborate on Exception Items Create Order Forecast Identify Exceptions for Order Forecast Resolve/Collaborate on Exception Items Order Generation
BENEFITS OF CPFR
According to demand-
Enhanced relationship
Greater sales
Category management
Improved product offering
According to supply
Improved order forecast accuracyInventory reductionImproved technology ROIImproved overall ROIIncreased customer satisfaction
OPPURTUNITIES OF CPFR: The main opportunities exist in trading relationships with
one or many of the following characteristics, where: Demand is hard to predict Promotional activities play an important role New product introductions are frequent Lead-times for production and/or replenishment are
long Product life cycles are short (e.g. fashion) Forecast accuracy is low High levels of inventory exist in the supply chains Consumer expectations are frequently not met Seasonal demand variances are significant.
CHALLENGES OF CPFR
Selection of CPFR PartnersSenior Management Buy InTrust Based RelationshipConfidentiality Internal Reward StructureCultural Change
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