Collaborative Planning, Forecasting and Replenishment

1656 Words Jun 18th, 2011 7 Pages
Abstract

The present research paper investigates the IT application of collaborative planning, forecasting and replenishment (CPFR). The first part of the paper sets a theoretical framework which initially defines the software use and implementation, and then recognizes the key advantages of this particular software. Moreover, to be fairly critical some major pitfalls identified by academics and practitioners are also presented. At the end it is up to the individual organization to make their pros and cons analysis, acknowledging the business and its industry to come to a final conclusion. Additionally, it is of utmost importance the whole organization, regardless of the hierarchy rank, to be determined to fully implement the new
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Of great importance is that the IT application manages to bring the seller and the buyer closer together and each one fulfils the other one’s supply chain responsibilities. As the VICS Committee (2011) suggests the end consumer plays the main role as demand driver, then the retailer has to provide goods/services to match the need and so it all goes directly to the manufacturer (see Fig.1).

Figure 1: Information Flow [pic]

In order for the CPFR application to work in practice certain technologies are to be employed, and among the most common ones are the Internet-based CPFR solutions (Sparks and Wagner, 2003). They comprise according to Seifert (2003) web-based collaboration (lets free information flow and process[1] sharing), event management and analysis (exception monitoring, notifying and running), and tracking and reporting (overall performance analysis).

Researchers establish that in business CPFR software manages to minimize risk for both retailer and producer and discovers easily the newly emerging trends regarding the industry, its consumers, and preferences. Generally, there is a long term benefit from applying the model because it not only shares information between supply chain parties on strategic, business and operational level but also makes their business connection build upon trust and hence, nurtured and strong
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