By Dirk Seifert
Collaborative making plans, Forecasting, and Replenishment - another way referred to as CPFR - is a progressive provide chain administration approach that is been tailored by means of businesses like Wal-Mart, Pillsbury, and Procter and Gamble. This ebook collects contributions by means of the major specialists within the box to supply readers with a first-hand advent.
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Additional info for Collaborative Planning, Forecasting, and Replenishment: How to Create a Supply Chain Advantage
The strategies are drawn from the previously determined category roles. For example, a high-profile category may offer the retailer the opportunity to aggressively position itself against competitors (defending turf ). A seasonal or impulse category supports a strategy of building traffic. Finally, a supplementary category may support image building in that a broader assortment allows an easier and a more complete shopping experience (one-stop shopping). Accordingly, category strategies should always be in harmony with high-level corporate and marketing objectives, such as the sought-after marketing image.
This fact indicates a considerable potential improvement in inventory management. According to Henkel, the problem lies in the area of promotions. The current project had already increased forecast accuracy 15 percent by May 2001 and offered the participants the chance to improve their out-of-stock situation. Noteworthy in this example is the inclusion of the packaging supplier in the cooperation agreement. The case shows that the availability of goods, at the right time, in the right place, of the correct quantity and quality is decidedly dependent on suppliers The CPFR Concept 40 of subcomponents.
3 focuses on order generation based on sales forecasts and shows how order restrictions may lead to orders that may be quite different from the forecasted sales. Consequently, the forecasting of orders can be done successfully only under fairly restrictive assumptions. The final section shows how some of these principles are implemented in a CPFR pilot project between an international retailer and an international manufacturer of consumer goods. 1 Integrated Demand and Supply Chain Management Minimizing Total Supply Chain Cost A key objective of management in retail is the optimization of the supply chain from the manufacturer through distribution centers (DCs), which may include hubs, warehouses, and cross-docking operations, and/or direct store delivery (DSD) to the store to fulfill the individual customer’s demand.
Collaborative Planning, Forecasting, and Replenishment: How to Create a Supply Chain Advantage by Dirk Seifert