CPFR, CROSS

DOCKING, COLD
CHAIN LOGISTICS

BY AMAL K S
CPFR (COLLABORATIVE PLANNING, FORECASTING AND
REPLENISHMENT)

 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.

 Information shared between suppliers and retailers aids in planning and satisfying customer demands
through a supportive system of shared information.

 This allows for continuous updating of inventory and upcoming requirements, making the end-to-end
supply chain process more efficient.

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THE FOUR PHASES OF CPFR IN SUPPLY CHAIN COLLABORATION

 Strategy and Planning: This phase involves laying down the strategy

for collaborative relationships between supply chain partners. The
idea is that all organizations 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.

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THE BENEFITS OF CPFR

Initiating 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:

 Improved accuracy of sales and order forecasts

 Reductions in inventory levels
 Closer relationships among the supply chain partners
 Reduced supply chain uncertainty
 Realization of supply chain cost reductions
 More effective mitigation of supply chain risks
 Release of working capital for partners in the agreement
 Improved flow of materials and information up and down the supply chain
 Greater efficiency in production and manufacturing

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 CROSS-DOCKING
 Cross-docking involves delivering products from a
manufacturing plant directly to customers with little or no
material handling in between.
 Cross-docking not only reduces material handling but it
reduces the need to store the products in the warehouse. In
most cases, the products sent from the manufacturing area to
the loading dock have been allocated for outbound deliveries.
 Cross-docking solutions allow companies to expedite
shipments to customers, which means that customers often
get what they want when they want it — the goal of an
optimized supply chain.

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BENEFITS OF CROSS-DOCKING

Many companies have benefitted from using cross-

docking. Some of the benefits include:

 Reduction in labor costs, as the products no

longer require picking and putting away in the
warehouse.
 Reduction in the time from production to the
customer, which helps 
improve customer satisfaction.
 Reduction in the need for warehouse space, as
there is no requirement to store the products.

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TYPES OF CROSS-DOCKING
 Manufacturing Cross-Docking: This procedure involves the receiving of purchased and inbound products
that are required by manufacturing. The warehouse may receive the products and prepare sub-assemblies
for the production orders.
 Distributor Cross-Docking: This process consolidates inbound products from different vendors into a mixed
product pallet, which is delivered to the customer when the final item is received. For example, computer
parts distributors can source their components from various vendors and combine them into one shipment
for the customer.
 Transportation Cross-Docking: This operation combines shipments from a number of different carriers in
the less-than-truckload (LTL) and small-package industries to gain economies of scale.
 Retail Cross-Docking: This process involves the receipt of products from multiple vendors
and sorting them onto outbound trucks for a number of retail stores. They would procure
two types of products, items they sell each day of the year, called staple stock, and large
quantities of products that are purchased once and not usually stocked again. This second
type of procurement is called direct freight.

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PRODUCT SUITABLE FOR CROSS-DOCKING
There are materials that are better suited to cross-docking than others. The list below shows a number of
types of material that are more suited to cross-docking.

 Perishable items that require immediate shipment

 High-quality items that do not require quality inspections during goods receipt
 Products that are pre-tagged (barcodes, RFID), pre-ticketed, and ready for sale
 Promotional items and items that are being launched
 Staple retail products with a constant-demand or low-demand variance
 Pre-picked, pre-packaged customer orders from another production plant or warehouse

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 COLD CHAIN LOGISTICS

 Cold chain logistics is the technology and process that

allows for the safe transport of temperature-sensitive
goods and products along the supply chain. It relies
heavily on science to evaluate and accommodate for
the link between temperature and perishability. 

 Any product known to be or labeled “perishable” will

likely need cold chain management. This could include
foods like meat and seafood, produce, medical
supplies and pharmaceuticals.

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COLD CHAIN TECHNOLOGIES
Cold chain transportation relies on several methods to keep goods at proper temperatures. How
long the transport is, the size of the packaged shipment and seasonality are all factors that affect
which method is used.

 Gel packs – Often used for medical and pharmaceutical shipments.

 Dry ice – Can keep goods frozen for extended time periods. Used for dangerous goods,
pharmaceuticals and food. Sublimates rather than melts when coming in contact with air. 
 Liquid nitrogen – Used primarily to transport biological cargo (organs, tissues).Extremely cold,
keeps items frozen for longer periods. 
 Eutectic plates – Also called cold plates, similar to gel packs but can be reused. 
 Reefers – A temperature-controlled, insulated van, semi, truck or standard ISO container.
Allows for temperature-controlled air circulation.

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COMMON COLD CHAIN MANAGEMENT ISSUES
 Product quality issues – For food items and products, quality can be an issue from the start. Proper
sanitizing, cleaning and sorting must be done prior to packaging and loading. 
 Inadequate packaging – Important to prevent contamination and transport-related damage. Air flow can
also be an issue. 
 Shipment/transport delays – Delays are an obvious issue for any shipper, but they can be particularly
detrimental when dealing with cold chain logistics, since cold chain technology is time-sensitive.  
 Disrupted climate control and/or temperatures – Temperature variation can be a big problem in cold
chain logistics. It can result from multiple deliveries (meaning doors opening and closing often), loading
food from the field, improper pre-cooling, extreme weather or other conditions like faulty cooling devices
or transports. 
 Lack of proper documentation – All steps of cold supply chain management need to be well-documented.
This is especially true during transit, where data loggers that record storage temperatures and conditions
can help prevent inadequate conditions from spoiling a load. 

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COLD CHAIN STANDARDS AND REGULATIONS
Regulators like the International Air Transport Association (IATA), the Transportation Security Administration
(TSA), Food Corporation of India (FCI), Central and state Warehousing Corporations (CWC & SWC) the
Department of Transportation (DOT) and others have set standards and requirements for cold chain logistics.
These requirements are established to better ensure products are shipped safely. Each has their own
minimums for different products in relation to temperature, timing and packaging.
Some regulatory considerations include:
 Product stability
 Packaging
 Transportation
 Monitoring
 Temperature minimums

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