Instructor:
Cecil Bozarth , PhD
North Carolina State University
Author of "Introduction to Operations and Supply Chain Management," 2nd edition, Pearson, Prentice-Hall
SECTION Index
2. Demand and Supply Management
3. Execution
4. Analysis -
a. Exception Management
Collaborative Planning, Forecasting and Replenishment (CPFR): A Tutorial
CPFR Model: 1. Strategy and Planning
What Does CPFR Strategy and Planning Involve?
Collaboration Arrangement Steps
Collaboration Arrangement Output
What Does CPFR Strategy and Planning Involve?
Establish the ground rules for the collaborative relationship. Determine product mix and placement, and develop event plans for the period.
- Collaboration arrangement
- Setting the business goals and defining the scope for the relationship
- Assigning roles, responsibilities, checkpoints and escalation procedures
- Joint business plan
- Identifies the significant events that affect supply and demand, such as promotions, inventory policy changes, store openings / closings, and product introductions
Collaboration Arrangement Steps
Collaboration Arrangement Output
A document that gives both partners a co-authored blueprint for beginning the collaborative relationship.
- Defines the process in practical terms.
- Identifies the roles of each trading partner and how the performance of each will be measured.
- Spells out the readiness of each organization and the opportunities available to maximize the benefits from their relationship.
- Formalizes each party’s commitment and willingness to exchange knowledge and share in the risk.
Joint Business Plan Steps
Joint Business Plan Output
A mutually agreed upon joint business plan that clearly identifies the roles, strategies, and tactics for the SKUs that are to be brought under the umbrella of CPFR.
- Cornerstone of the forecasting process.
- Should greatly reduce exceptions and the need for excessive interactions.