- CPFR has its roots in Efficient Consumer Response (ECR), but goes further by formalizing the planning, sales and order forecasting, and exception handling activities.
- The CPFR process model consists of 4 major processes:
- Strategy and planning
- Demand and supply management
- The 4 major processes are further subdivided into 8 collaboration tasks.
- Each collaboration task has corresponding enterprise tasks, most of which retailers and manufacturers are already doing. CPFR provides the framework for coordinating these efforts.
- To implement CPFR, many manufacturers use cross-functional customer teams, while many retailers use cross-functional category teams. Such teams have the benefit of simplifying both inter-firm and intra-firm coordination.