A framework for Collaborative Planning, Forecasting and Replenishment (CPFR) (original) (raw)
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Collaborative planning, forecasting and replenishment: demand planning in supply chain management
International Journal of Information Technology and Management, 2008
Recognizing the value of information sharing among supply chain partners, a growing number of firms have expressed keen interest in jointly creating customer demand, managing business functions and leveraging the strength of their supply chain partners. In particular, such interest sparked the rapid development and implementation of collaborative planning, forecasting and replenishment (CPFR) that was proven to be successful in minimizing safety stocks, improving order fill rates, increasing sales, and reducing customer response time. Despite increasing popularity, key drivers for the successful development and implementation of CPFR have not been fully understood by practitioners and academicians alike. This paper unveils the invisible challenges and opportunities for adopting and implementing CPFR. Also, it provides an overview of CPFR in comparison to other alternative forecasting techniques such as agent-based forecasting and focus forecasting, while synthesizing the past evolutions and future trends of CPFR in a supply chain setting.
Collaborative planning, forecasting, and replenishment: how to create a supply chain advantage
2003
The challenge faced by supplier companies in the grocery supply chain for implementing collaborative planning, forecasting and replenishment (CPFR) is how to get the retailer to forecast, especially when it has not been necessary before. In this paper a solution that would allow collaboration on a wide scale is presented. The forecasting approach is called``rank and share'' and uses input from the retailer's existing planning process ± the category management process. The benefit of using category management as the basis is that the retailer can scale up collaboration with a large number of suppliers without increasing planning resources. For the supplier the benefit is point of sales forecasts at the time of the assortment decision. To support this collaborative forecasting process there is a need for more robust replenishment solutions, new measures to illustrate benefits, and for a distributed planning architecture and software. Potential solutions for these are also discussed in the paper.
The challenge faced by supplier companies in the grocery supply chain for implementing collaborative planning, forecasting and replenishment (CPFR) is how to get the retailer to forecast, especially when it has not been necessary before. In this paper a solution that would allow collaboration on a wide scale is presented. The forecasting approach is called``rank and share'' and uses input from the retailer's existing planning process ± the category management process. The benefit of using category management as the basis is that the retailer can scale up collaboration with a large number of suppliers without increasing planning resources. For the supplier the benefit is point of sales forecasts at the time of the assortment decision. To support this collaborative forecasting process there is a need for more robust replenishment solutions, new measures to illustrate benefits, and for a distributed planning architecture and software. Potential solutions for these are also discussed in the paper.
Implementing collaborative forecasting to improve supply chain performance
International Journal of Physical Distribution & Logistics Management, 2002
Sales forecasting and collaboration are two business phenomena that have independently been recognized as contributing to improved organizational performance. The present research employs case study methodology to explore the synergies to be gained from combining the two processes. Depth interviews were conducted with executives at three firms currently engaged in collaborative forecasting with supply chain partners. Results revealed unique approaches to collaborative forecasting that circumvent the inhibitors of collaborative planning, forecasting, and replenishment adoption, and yield substantial improvement in company and supply chain performance including increased responsiveness, product availability assurance, optimized inventory and associated costs, and increased revenues and earnings. Seven guidelines to implementing interfirm collaborative forecasting are presented.
Exploring the experiences of collaborative planning initiatives
International Journal of Physical Distribution & Logistics Management, 2001
Supply chain integration (or synchronisation) is to a large extent still only a promise, despite many considerable efforts by organisations and their customers and suppliers. Lack of visibility of true consumer demand and collaborative relationships based upon joint decision making remain significant barriers to the goal of supply chain integration. Collaborative planning, forecasting and replenishment (CPFR) is a strategy which promises to overcome these barriers, and seeks through joint planning, joint decision making and the development of a clearer understanding of the dynamics of the supply chain replenishment process to deliver some of the promised benefits of actual supply chain integration. Despite the existence of a detailed and comprehensive process model, and promising initial results there has not been widespread adoption of CPFR, justifying the need to revisit the process model and to further explore the inhibitors and enablers. Based upon a review of the existing liter...
Collaborative planning: supporting automatic replenishment programs
Supply Chain Management-an International Journal, 1999
Automatic replenishment systems that restock inventory based on actual demand triggers rather than relying on long-range forecasts and layers of safety stock have been implemented in a great number of firms in recent years. Now these same firms are taking supply chain cooperation to another level through involvement in collaborative planning/forecasting/replenishment (CPFR). The results of a recent survey assessing current levels of involvement in cross-organizational collaboration among firms utilizing automatic inventory replenishment are presented. The results provide strong support for positive associations between high levels of CPFR and implementation of operating process change and information system capabilities. Results supported only a very weak association between CPFR and effectiveness in achieving operational performance goals.
Business Process Management Journal, 2007
Purpose -The aim of this paper is to provide an overview of contemporary supply-chain management systems. Design/methodology/approach -The paper highlights the examples of state-of-the-art practice in supply-chain management, and speculates about where this movement is headed. Some of the collaborative supply chain management products generating the most interest will also be examined. Findings -Collaborative planning, forecasting and replenishment (CPFR) is the most recent prolific management initiative that provides supply chain collaboration and visibility. By following CPFR, companies can dramatically improve supply chain effectiveness with demand planning, synchronized production scheduling, logistic planning, and new product design. CPFR will force suppliers to innovate, building on strong one-to-one relationships that will drive smarter ways of doing things. Most companies and industries can benefit from CPFR. However, companies that experience variation in demand, buy or sell a product on a periodic basis, and those that deal in highly differentiated or branded products will benefit the most. Practical implications -Practitioners can gain first-hand knowledge of the CPFR model, technology and factors influencing adoption. Practitioners can also find examples of state-of-the-art practice in supply-chain management, and study some of the collaborative supply chain management products generating the most interest. Originality/value -The paper is valuable to practitioners interested in implementing CPFR in their organizations.
A multidisciplinary review of collaborative supply chain planning
2009
Supply chains are networks of loosely coupled business units characterized by distinct, yet mutually interdependent, planning decision domains. Such networks are generally managed hierarchically through the central and aggregated control of a corporate business planning unit, or through a cascade process referred to as upstream planning. In order to improve the limitations of such hierarchical planning methods, several projects initiated in different research domains have proposed various extensions and alternatives. This paper aims at analyzing this research literature using a framework that systematically investigates their coordination process, their local decision making ability and their advanced planning tools. This paper concludes with a discussion of the complementarities of the two main methodological domains that underlie these supply chain coordination systems (i.e., operations research and agent technology).