Cpfr Implementation Issues

turban_on_W001-W146-hr 29-01-2009 11:12 Page W-90 Online Brief 10.2 CPFR Implementation Issues When implementing a CPFR butt, the collaborators barrack on a model process, shown in Figure 10.2.1. The process ends with an order forecast. CPFR provides a standard framework for collaborative planning. Retailers and vendors run into the rules of engagement, such(prenominal) as how often and at what level data will be provided. Typic every last(predicate)y, they share greater amounts of more elaborated information, such as promotion schedules and item point-of-sale history, and persona store-level expectations as the basis for all forecasts. The idea is to improve gather up prodigy for all of the partners in the supply chain and thus communicate forecasts using information-sharing applications (already developed by technology companies such as Oracle and i2). For the retailer, collaborative forecasting means fewer out-of-stocks and resultant lost sales and less stored inventory. For the manufacturer, collaborative forecasting means fewer expedited onuss, optimal inventory level, and optimally coat toil runs.

Besides working together to develop production plans and forecasts for stock replenishment, suppliers and retailers also coordinate the related logistics activities (such as shipment or warehousing) using a common language standard and new information methodologies. A 2002 survey found that 67 percent of 43 large food, beverage, and consumer products companies were researching, piloting, or implementing CPFR. About half(a) of the respondents who were looking at CPFR said they planned to go onward with their initiatives. However, CPFR is not the answer for all trading partners or all types of stock-keeping units (SKUs). According to Tim Paydos, a vice president of marketing at Syncra Systems, CPFR has generated the highest payback with either highly promoted or seasonal goods, whose inventories historically have often been misaligned with demand. If Im going to make... If you need to get a full essay, order it on our website: Ordercustompaper.com

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