5. A Brief History CPFR evolved from Efficient Consumer Response (ECR). ECR: Improve supply chain performance through better coordination of marketing, production, and replenishment activities.
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8. CPFR ® Initiative Participants SARA LEE Federated Dept. Stores Mead School & Office Kimberly Clark JCPenney VF Corp. Staples
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11. CPFR Benefits More effective inventory management Improved customer service Improved profitability
12. Typical CPFR ® Benefits Source: AMR Research (2009) Retailer Benefits Typical Improvement Better Store Shelf Stock Rates 2% to 8% Lower Inventory Levels 10% to 40% Higher Sales 5% to 20% Lower Logistics Costs 3% to 4% Manufacturer Benefits Typical Improvement Lower Inventory Levels 10% to 40% Faster Replenishment Cycles 12% to 30% Higher Sales 2% to 10% Better Customer Service 5% to 10%
40. 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
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46. CPFR BENEFITS (Wal-Mart’s Report) Level of Participation In-Stock Rate (Improvement) Weeks of Supply (Improvement) Inventory Turnover (Improvement) Active 7.85% 5.3 weeks 3.72 Less 3.10% n/a n/a
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