Instructor:

Cecil Bozarth , PhD
North Carolina State University
Author of "Introduction to Operations and Supply Chain Management," 2nd edition, Pearson, Prentice-Hall

 

SECTION Index

Introduction

CPFR Process Model

  1. Strategy and Planning

   2. Demand and Supply Management

   3. Execution

   4. Analysis -
       a. Exception Management

       b. Performance Assessment

           and Collaboration

Organizational Implications

Summary

References

 

 

Collaborative Planning, Forecasting and Replenishment (CPFR): A Tutorial

CPRF Model

As defined by Voluntary Inter-Industry Commerce Standards (VICS) Association

 

 

Why the Need for a Standard Process Model?

The CPFR Process Model

CPFR: Key Tenets

 

Why the Need for a Standard Process Model?

• CPFR is being implemented at thousands of companies across the globe.

• Many companies, such as GSK, are implementing CPFR with multiple retailers

• A standard vision is needed to provide a common understanding of:
  • Terminology and definitions
  • The steps needed to implement CPFR
  • Data and information system requirements
  • Best practices

• The process model described here is from the 18 May 2004 overview provided by VICS

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The CPFR Process Model

 

(VICS CPFR Model)

 

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CPFR: Key Tenets

• The consumer is the ultimate focus of all efforts

• Buyers” (retailers) and “sellers” (manufacturers) collaborate at every level

• Joint forecasting and order planning reduces surprises in the supply chain

• The timing and quantity of physical flows is synchronized across all parties

• Promotions no longer serve as disturbances in the supply chain

• Exception management is systemized

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