Collaborative Planning, Forecasting and Replenishment

Arntzen, B. C., G. G. Brown, T. P. Harrison, L. L. Trafton. 1995. Global supply chain management at Digital Corporation. Interfaces 25(1) 69-93.

Also, Amazon has emphasized on building “several distribution centers around the world to hasten deliveries”(Hof and Himelstein, 1999). Coupled with its software it provides a “laser-like focus on the buying experience”(IT Business Edge, 2012). Such a system and service is what draws customers towards Amazon and subsequently retains them.

Strong investment in Information technology to streamline information flows and product flows along supply chain(RFID, Retail-Link system)

Depending of the size of the enterprise, IT solutions were provided by either an IT supplier or a system integrator (SI). Typically, larger enterprises and government agencies utilized the system integrator (SI) in collaboration with their IT departments which would provide full-package solutions. Small and medium sized enterprises (SMEs) purchased directly from IT suppliers, but the consumer was not loyal to any one IT supplier on the market. The competition among IT suppliers involved competition of lower prices and selling individual components. (Hao, 2012, pp. 3-4)

* Extend the value chain of the business so that the organisation’s information system can link with the information system of customers and suppliers. This should result in benefits and improved information flows

Open dialogue and communication is very important between the supplier and buyer. Late, missing or inaccurate documents can cause delays of customs clearance and, ultimately, delivery to destination. E-mail and the Internet, and phone calls, can enhance supply-chain efficiency.

Order processing involves the following steps: customer orders item(s), order received by the manufacturer, order processed by the manufacturer, credit verified by the credit department, order packed and loaded on to truck for shipment, order shipped to customer, and finally, order receive by customer and added to inventory (Nobilis, 2011). Having a competitive supply chain is not successful unless Target has the technologies to deliver the good or service to consumers in an efficient, effective manner.

By grafting its system of custom direct sales onto the Internet infrastructure, Dell has transformed these activities, creating an innovative and efficient procurement, production, and distribution network. The innovative advance made by Dell in deploying Internet communication as the foundation of its production network, is a process innovation. Although to some extent, the Internet has enabled Dell to create a new product -- a PC custom-configured through Internet communication -- it is the process of organizing flows of materials and information within its network, from customer order to procurement, production and delivery, by means of Internet communication, that defines the innovation at the Firm. The case supports this notion by stating “While most other PCs were sold preconfigured and pre-assembled in retail stores, Dell offered superior customer choice in system configuration at a deeply discounted price, due to the cost-savings associated with cutting out the retail middleman. Additionally, an important side-benefit of the Internet-based direct sales model was that it generated a wealth of market data the company used to efficiently forecast demand trends and carry out effective segmentation strategies. This data drove the company’s product development efforts and allowed Dell to profit from information on the value drivers in each of its key customer

The procurement section of Target’s supply chain is an essential part of how it replicate costs to customer requirements. The overall affiliation between customer fulfillment and the supply chain are closely linked to products that are designated based on benchmarks that have been appropriately matched to target costing structured with market criticism and feedback provided. When focusing on purchasing products to sell to customers, the organization selects and processes the best option that best matches Target’s

Before summarizing how West Marine was able to implement a successful CPFR system, it is necessary to explain exactly what CPFR actually is. Collaborative Planning, Forecasting, and Replenishment (CPFR) is a system used by companies to enhance their current supply chain procedures. CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain.

West Marine, a large boating and fishing retailer with over 300 stores in North America with more than 50,000 products is planning the acquisition of BoatU.S. and the subsequent integration of the two supply chains. Although the management of West Marine has made significant progress in the implementation of CPFRprinciples over the six years since the E&B Marine acquisition, there are still qualms about how well the current Supply Chain and planning process can incorporate BoatU.S.'s product line. Each company maintains 750 suppliers with only 100 in common (or ~13%), with only 20% of products in common.BoatU.S. does not provide forecasts to suppliers or participate in any other CPFR activities as does West

The class text states that Supply chain management is frequently divided into supply chain planning applications, supply chain execution applications, logistics management, and warehouse management. Often when companies fail at implementing an efficient supply chain because of the planning section, or inaccurate demand forecasts. The text states electronic data interchange is one of the earliest uses of information technology for supply chain management, Electronic data interchange is the use of the Internet for everyday business transactions. “In this era of information a firm’s supply chain should operate at speed of thought and this is possible only by enhanced e-speed communications and information sharing with their critical partners.” (4)

Consumers have many choices when deciding where to purchase their goods. While retailer managers are deciding how to win the consumer’s business and increase revenue, they are also constantly trying to figure out ways to reduce costs. Technology helps retail managers improve areas of inventory and supply chain management as well as customer satisfaction and loss prevention (Green, 2002). This paper explains how technology

to engage suppliers to work together for improving the resource effi ciency of IT products. We

Aggregate planning is the process of developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization. The aggregate plan generally contains targeted sales forecasts, production levels, inventory levels, and customer backlogs. This schedule is intended to satisfy the demand forecast at a minimum cost. Properly done,