CPFR enables a time-phased order forecast that provides additional information, greater lead time for production planning, and improved forecast accuracy vs. either stand-alone VMI/CRP or other industry tools.
CPFR helps reduce forecast uncertainty and process inefficiencies.
How much inventory does your company hold to “cover up” for forecasting errors or a trading partner’s inability to have the product available in a timely manner?
With CPFR, product can be produced to actual order instead of storing inventory based on forecast.
Gather sales forecast exception resolution data from previous iterations
Generate sales forecast
Generate the forecast for a given period with forecasting tools that use all relevant information and guidelines. Either partner or both partners may generate the sales forecast, depending upon the scenario
The order forecast allows the seller to allocate production capacity against demand while minimizing safety stock.
The real-time collaboration reduces uncertainty between trading partners and leads to consolidated supply chain inventories.
Inventory levels are decreased, and customer service responsiveness is increased. A platform for continual improvement among trading partners is established.
Execution Place orders, prepare and deliver shipments, receive and stock product on retail shelves, record sales transactions and make payments. Order generation — Transitions order forecasts into firm demand Order fulfillment — Producing, shipping, delivering, and stocking the products