CPFR has its origins in Efficient Consumer Response (ECR), where Procter & Gamble and Walmart developed processes like information sharing, joint demand forecasting, and coordinated shipments in the early 1990s. CPFR builds on this by linking sales and marketing practices to supply chain planning and execution between trading partners to increase customer availability while reducing costs. It includes information systems to share demand data, formalized forecasting and order processes, and exception handling to monitor performance.

1. Origins in ECR
In early 1990s, P&G and Wal-Mart developed a joint logistics process .The steps involved were:
•Information sharing
•Joint demand forecasting
•Coordinated shipments.
•This partnership laid the foundation for ECR.
What is CPFR?
CPFR is a business practice that combines the intelligence of multiple trading partners in the planning and fulfilment of customer
demand.
•Links sales and marketing best practices to supply chain planning and execution processes
•Objective is to increase availability to the customer while reducing inventory, transportation and logistics costs
Retailer Manufacturer
•Arms Length relationship
•Little or no planning at all
•Costly relationship
•Lack of information sharing
•Unpredictable ordering patterns
•Huge inventory
•Service failure
Origins in ECR
CPFR has its origins in Efficient Consumer Response (ECR).
ECR was a conscious attempt to better coordinate marketing, production, and replenishment activities in a way that simultaneously increased
value to the consumer while improving supply chain performance for producers and retailers.

2. Difference between ECR and CPFR
CPFR includes following things
•Information systems for capturing and transferring POS, inventory, and other demand & supply information between trading partners
•Formalized sales forecasting and order forecasting processes
•Formalized exception handling processes
•Feedback systems to monitor and improve supply chain performance
Uncertainty
More resources (ex. Inventory)
ECR Simplified the environment
CPFR Put Processes into place to handle the added
complexity.

3. Analysis Strategy & Planning
Demand & Supply
Management
Execution
Collaboration
arrengement
Joint
Business
Plan
Customer
Performance
Assessment
Sales
Forecasting
Exception
Management
Order
Fulfilment
Performance
Assessment
Order
Generation
Manufacturer
Retailer
Introduction: Collaborative Planning, Forecasting and Replenishment
CPFR MODEL

4. Introduction: Collaborative Planning, Forecasting and Replenishment
Vendor Management Collaboration arrangement Account Planning
Category Management Joint Business Plan Market Planning
POS Forcasting Sales Forcasting Market Data Analysis
Replanishment Planning
Order Planning/
Forcasting Demand Planning
Buying/Re-Buying Order Generation
Production and
Supply Planning
Logistics/Distribution Order Fulfillment Logistics/Distribution
Store Execution Exception Management Execution Monitoring
Supplier Scorecard Performance Management Customer Score Card
Analysis
Retailer Task Collaboration Tasks Manufacturer Tasks
Strategy and Planning
Demand and Supply Management
Execution