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

CPFR Model:    3. Execution

 

 

CPFR Execution

Order Generation Overview

Order Generation Steps

Order Generation Output

 

 

CPFR Execution

 

(VICS CPFR Model)

 

Place orders, prepare and deliver shipments, receive and stock product on retail shelves, record sales transactions and make payments.  Also called the order to cash cycle.

• Order generation
• Transitions order forecasts into firm demand

• Order fulfillment
• Producing, shipping, delivering, and stocking the products

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Order Generation Overview

• This step marks the transformation of the order forecast into a committed order.

• Either the seller or buyer can handle order generation depending on competencies, systems, and resources.

• Regardless of who completes this task, the created order is expected to consume the forecast.

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Order Generation Steps

 

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Order Generation Output

• A committed order generated directly from the frozen period of the order forecast.

• An order acknowledgment sent by the customer

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