COLLABORATIVE PLANNING, FORECASTING, AND REPLENISHMENT

Fabrication and Distribution

Assembly Center
Tier n vendor Tier 3 vendor Tier 2 vendor Tier 1 vendor Retailer

Production Planning and Purchase Information Replenishment Information Forecast Information

 Sharing of forecast and other related business information among business partners in the supply chain to
enable automatic product replenishment
 Function is to improve the flow of good and quickly identify discrepancies – information is used to eliminate
excess inventory and improve in-stock positions
 Consistent with the Voluntary Inter-Industry Commerce Standards Association’s Dynamic Information Sharing
goal to improve partnership among retailers and vendors through shared information

Collaboration Illustration

Concerns with CPFR:

a. Give away secrets

 CPFR can unmask internal problems
 Partners can share solutions
 Partners can prove their reliability and responsiveness
b. Technology
 CPFR is about the planning process and not the technology
 Entry into CPFR can begin in a small, affordable way
c. Critical mass
 Process improvements with just one customer can positively impact, but company should aspire to
improve service to all customers
 Resources and dedicated individuals responsible for key areas are significant

Connect Interact Integrate Collaborate