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
Execution
Analysis
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.
