What is CPFR concept?

CPFR is the acronym for collaborative planning, forecasting and replenishment, a practice developed to reduce supply chain costs through collaboration among what may be many partners in a single supply chain.

What is collaborative forecasting?

Collaborative forecasting or forecast collaboration makes use of available information and latest technology to force a shift from independent, forecasted demand to dependent, predictable demand. This essentially implies real-time information sharing about demand among supply chain partners.

What is CPFR example?

CPFR stands for Collaborative Planning, Forecasting, and Replenishment. In the 20th century, Walmart and Procter & Gamble developed a joint logistics program that included information sharing, joint logistics planning, and shared forecasting. This is generally considered one of the first examples of organized CPFR.

What is the difference between S&OP and CPFR?

S&OP is a strategic business management process that aligns centers of functional excellence in a coordinated internal collaborative process. CPFR is a strategic business management process that aligns the complementary capabilities of trading partners in a coordinated external collaborative process.

What is CPFR used for?

Collaborative Planning, Forecasting and Replenishment (CPFR) is an approach which aims to enhance supply chain integration by supporting and assisting joint practices. CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain.

What are the key features of CPFR?

CPFR Model – Modern Concept Of Business Efficiency

• Business agreement.
• Developing business plan.
• Developing sales forecast.
• Exceptions identifying for sales forecast.
• Collaboration on exceptions.
• Order forecast creation.
• Exceptions identifying for order forecast.
• Collaboration on order forecast exceptions.

What is collaborative forecasting Salesforce?

Predict and plan the sales cycle from pipeline to closed sales, and manage sales expectations throughout your sales organization with Collaborative Forecasts. A forecast is an expression of expected sales revenue based on the gross rollup of a set of opportunities.

What is the difference between customizable and collaborative forecasting?

Customizable Forecasts rolls up multiple forecasting categories into a single category while Collaborative Forecasts does not. For example, do you consider your Commit category to be all Opportunities that are almost closed plus those that are closed, or is it only those that are almost closed?

What are common CPFR scenarios?

The four scenarios that sellers and buyers can collaborate along include:Retail event collaboration – the identification of specific SKUs that will be involved in sales promotions and sharing of information regarding the timing, duration, pricing, advertising, and display tactics to be deployed.

Why is CPFR important?

CPFR enables trading partners to improve operational efficiency through a systematic process of sharing and utilizing information across firm level boundaries. As a result demand forecasting and replenishment has become a vital issue for manufacturers, professionals and researchers.

What are the disadvantages of CPFR?

Disadvantages of CPFR based on the vendor-managed inventory process

• Suppliers are given access to external operating data by means of the so-called ‘Vendor-Managed Inventory Process’.
• Medium to long-term partnerships between all parties involved are necessary.

What is the difference of CPFR and ECR?

As with ECR, the consumer is the focus of this cooperation. The decisive difference between CPFR and ECR is that with CPFR, all suggestions for improvement and initiated process changes, in terms of information, must be shared by all those involved.

What does CPFR stand for in supply chain?

CPFR is the acronym for collaborative planning, forecasting and replenishment, a practice developed to reduce supply chain costs through collaboration among what may be many partners in a single supply chain. CPFR is no vague or loose concept with a fancy name.

Where did the concept of CPFR come from?

CPFR has its origins in Efficient Consumer Response (ECR). ECR was a conscious attempt to better coordinate marketing, production, and replenishment activities in a way that simultaneously increased value to the consumer while improving supply chain performance for producers and retailers. Arms-lengths relationships; little or no joint planning

Who are the stakeholders in the CPFR process?

Collaborative Planning, Forecasting and Replenishment or CPFR is a process in which your company not only collaborates and integrates planning, forecasting and other data points from within your own company—but also uses data points provided by your suppliers and your customers. The stakeholders in CPFR are therefore: Suppliers.

What is the CPFR model for planning and forecasting?

“The CPFR reference model provides a general framework for the collaborative aspects of the planning, forecasting and replenishment processes (Wiehenbrauk, 2010).”.