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COLLABORATIVE PLANNING,
FORECASTING AND
REPLINISHMENT (CPFR)
PRESENTED BY:
MEGHA POOJARI
PRAVEEN HEGDE
CONTENTS
1. Introduction
2. Steps in CPFR
3. CPFR Model
4. Benefits of CPFR
5. Challenges in CPFR
6. Success Stories
WHAT IS CPFR?
• Business methodology which integrates multiple parties
in the planning & fulfillment of customer demand.
• Co-coordinating activities throughout the supply chain
inventories can be moved more efficiently, in the correct
quantities, to the correct inventories location to meet
customer’s demand.
STEPS IN CPFR
1. Develop Collaboration Arrangement
a) Develop CPFR Mission Statement
b) Determine CPFR Goals & Objectives
c) Discuss Competencies, Resources and System
d) Define Collaboration Points and Responsible Business
Functions
e) Determine Information- Sharing Needs
Contd..
f) Define Service & Ordering Commitments
g) Determine Resources Involvement & Commitments
h) Resolve Differences between Partners in the CPFR
Process
i) Regularly Reviews Cycle for CPFR Agreement
j) Publish Front- End Agreement
Contd…
2) Create Joint Business Plan
3) Create Sales Forecast
4) Identify Exceptions for Sales Forecast
5) Resolve/Collaborate on Exceptions Items
6) Create Order Forecast
7) Identify Exceptions for Order Forecast
8) Resolve/Collaborate on Exception Items
9) Generate Order
THE CPFR MODEL
• Customer is the centre of model
• Surrounding the customer is the retailor and supporting
activities provided by retailer
• The outer ring comprises of manufacturer and their
activities.
CPFR MODEL
BENEFITS OF CPFR
• Better Store Stock Rates
• Lower Inventory Level
• Increased Sales
• Lower Logistics Costs
CHALLENGES IN CPFR
• Lack of Data Compatibility
• Ineffective IT Systems & Solutions
• Unorganised Suppliers
• Poor relationship between Suppliers and Retailers
SUCCESS STORIES
1. WALMART AND P&G
2. COCA- COLA & KOF (FEMSA)
Collaborative planning, forecasting and replinishment (cpfr

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Collaborative planning, forecasting and replinishment (cpfr

  • 1. COLLABORATIVE PLANNING, FORECASTING AND REPLINISHMENT (CPFR) PRESENTED BY: MEGHA POOJARI PRAVEEN HEGDE
  • 2. CONTENTS 1. Introduction 2. Steps in CPFR 3. CPFR Model 4. Benefits of CPFR 5. Challenges in CPFR 6. Success Stories
  • 3. WHAT IS CPFR? • Business methodology which integrates multiple parties in the planning & fulfillment of customer demand. • Co-coordinating activities throughout the supply chain inventories can be moved more efficiently, in the correct quantities, to the correct inventories location to meet customer’s demand.
  • 4. STEPS IN CPFR 1. Develop Collaboration Arrangement a) Develop CPFR Mission Statement b) Determine CPFR Goals & Objectives c) Discuss Competencies, Resources and System d) Define Collaboration Points and Responsible Business Functions e) Determine Information- Sharing Needs
  • 5. Contd.. f) Define Service & Ordering Commitments g) Determine Resources Involvement & Commitments h) Resolve Differences between Partners in the CPFR Process i) Regularly Reviews Cycle for CPFR Agreement j) Publish Front- End Agreement
  • 6. Contd… 2) Create Joint Business Plan 3) Create Sales Forecast 4) Identify Exceptions for Sales Forecast 5) Resolve/Collaborate on Exceptions Items 6) Create Order Forecast 7) Identify Exceptions for Order Forecast 8) Resolve/Collaborate on Exception Items 9) Generate Order
  • 7. THE CPFR MODEL • Customer is the centre of model • Surrounding the customer is the retailor and supporting activities provided by retailer • The outer ring comprises of manufacturer and their activities.
  • 9. BENEFITS OF CPFR • Better Store Stock Rates • Lower Inventory Level • Increased Sales • Lower Logistics Costs
  • 10. CHALLENGES IN CPFR • Lack of Data Compatibility • Ineffective IT Systems & Solutions • Unorganised Suppliers • Poor relationship between Suppliers and Retailers
  • 11. SUCCESS STORIES 1. WALMART AND P&G 2. COCA- COLA & KOF (FEMSA)