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

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