CPFR Initiative Basis

CPFR, also known as Collaborative Planning, Forecasting and Replenishment, represents an end-to-end scheme designed to close the loop in the consumer-goods-to-retail supply chain. An unmet potential in forecast accuracy, supply chain coordination and general supply chain visibility was discovered by the biggest USA retailers in early 1990-s. The awareness of these processes influenced rise Collaborative Planning, Forecasting and Replenishment initiative. Since that times manufacturers and goods sellers cooperate in communication, logistic optimization, cost reduction, and product availability in order to reach astonishing advances in supply chain goals.

Today’s challenge is to use the best of SPFR in order to satisfy consumers demands that are constantly changing. Modern consumers, with their goals for unlimited choice in shopping, purchasing and consumption, have sparked a competitive explosion in product variation, points of sale, delivery options, demand signal tracking, and integrated sales and delivery schemes. Manufacturers, retailers and distributors are hardly working on customer satisfaction taking into account inventory stock-outs and overages, using forecasts and visibility.

As supply chain business models and therefore planning vary, SPFR process may be different in definite industries. However, there are four general stages in Collaborative Planning, Forecasting and Replenishment: Strategy and planning, Demand & supply management, Execution, Analysis.

A key to a successful CPFR implementation is a centralized platform to gather information, analyze data, and share insights with all involved parties. Software that enables integrated supply and demand planning is the main instrument to reach a success. With the help of technologies, like EDI, CPFR can become a strategy that will raise revenue, reduce cost and improve profitability in your supply chain.

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