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

CPFR 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

The CPFR Process Model

(VICS CPFR Model)

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