Collaborative Planning Forecast and Replenishment Show
We have developed this process to build on our commitment to better communication in order to exceed customer expectations and ensure we meet your business goals. This new tool will help:
Meeting customer expectations and business goals through communication and collaboration is fundamental to LCBO's core values.
CPFR Agent TemplateUpdated April 2022 How much do you know about CPFR? If you’ve never heard of it, have a quick read through this post and you’ll understand the basics of CPFR in the supply chain profession. CPFR is the acronym for collaborative planning, forecasting and replenishment, a practice developed to reduce supply chain costs through collaboration among what may be many partners in a single supply chain. Origins of CPFR in Supply ChainCPFR is no vague or loose concept with a fancy name. It was in fact developed by The Voluntary Interindustry Commerce Solutions (VICS) Association, which created a framework and set of guidelines for conducting CPFR in supply chains. Since emerging, CPFR has been adopted cautiously by some organisations and more wholeheartedly by others. For example, home appliance giant Whirlpool adopted CPFR for its supply chain and enjoyed immense success. Before CPFR was adopted, Whirlpool was struggling with a forecast error rate of 70%, which reduced to 11% after the company and its supply chain partners began working together under the CPFR framework. The Four Phases of CPFR in Supply Chain CollaborationThere are four key elements to practicing CPFR in supply chain operations. These can be briefly described as follows: Strategy and Planning: This phase involves laying down the strategy for collaborative relationships between supply chain partners. The idea is that all organisations involved in partnership share an agreed scope of collaboration, common business goals. Roles, responsibilities and procedures are also set out in the strategy and planning phase. Demand and Supply Management: This is the element which focuses on sales and order forecasting and the planning of orders. Execution: This is the phase concerned with the processes of producing, stocking, dispatching, and delivery of materials to end-customers. Analysis: This element comprises the management of exceptions in the fulfillment process, along with assessment of supply chain performance. The Benefits of CPFRInitiating a supply chain CPFR program is not without challenges. The companies involved must be prepared to work on cultural change and alignment, agree rules around confidentiality, and secure buy-in from senior management teams. However, when the adoption of CPFR in a supply chain is successful, there are a number of key benefits, which include:
When CPFR partners are able to collaborate effectively and align on the use of technology, the model can also facilitate improved system integration and simplify business processes, for example by eliminating manual process steps. Everyone Wins When CPFR is EffectiveWhen CPFR is effectively adopted and managed, win-win opportunities abound. The customer at the end of the supply chain benefits from improved service levels and product availability, so ultimately, everyone is happy. CPFR can be a great help in improving perfect order performance and garnering customer loyalty. You can learn more about perfect order and customer service in Supply Chain Secrets, my book of practical tips for saving money in supply chain operations. If you’d like to preview Supply Chain Secrets, along with other supply chain books that I’ve authored, you can see an overview of each title by visiting the Book Store on this website. What is CPFR used for?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.
What is collaborative planning forecasting and replenishments 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.
What are the 4 phases of CPFR in supply chain collaboration?The model is broadly organized into four quadrants comprised of Strategy & Planning, Demand & Supply Management, Execution, and Analysis.
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