CPFR - Model for Supply Chain Co-ordination
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Transcript of CPFR - Model for Supply Chain Co-ordination
CPFR Overview
• Plan your extended supply chain
◦ Share forecasts and supply commits with customers and suppliers
◦ Get visibility to supplier capacity
◦ Reallocate key components ◦ Make alternate sourcing
decisions
• Manage inventory cost and improve fulfillment
◦ Suppliers manage your inventory
◦ Manage your customers’ inventory
• React quickly to supply chain exceptions
◦ Waterfall analysis◦ User-configurable exceptions◦ Automated exception
handling via workflow
Contract
Manufacturer
You SupplierCustomer
Run plan
Optional
Forecast
‘memory’
Supply commit
‘boards’
Supply commit
‘memory’
Demand
‘boards’
Run plan
Demand
‘systems’
Supply
forecast
Consensus
forecast
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VICS CPFR Model
Definition◦ Collaborative Planning,
Forecasting and Replenishment (CPFR®) is defined as a business practice that combines the collaborative intelligence of multiple trading partners in the planning and fulfilment of customer demand.
Benefits◦ CPFR links sales and
marketing best practices, such as category management, to supply chain planning and execution processes to increase availability while reducing inventory, transportation and logistics costs.
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Manufacturer
Retailer
Consumer
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RFID readers and antennasA RFID reader consist of an antenna (or more) and an interrogator
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Using barcode and RFID
across the supply chain
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CHALLENGES
Supply chain has small objects at either end and big objects (containers) in the middle.
Shipper and retailer lose track of their goods in the middle.
Long range technology is needed for this ‘middle’ transportation domain.
Short range small asset technologies at either end.
Distribution
Center
ITEM
PACKAGE
TRANSPORT UNIT
PALLET
CONTAINER
MOVEMENT VEHICLE
Bar Code
Satellite
Active RF
Passive RF
FactorySupplier Customer
RTLS VideoHow Real Time Location System (RTLS) can be implemented using Wi-Fi triangulation
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Advanced
ICT
Integration
COMMUNICATIONS ENABLED
BUSINESS PROCESS (CEBP)
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CEBP: Integrating ICT to
Business applications
Communications Enabled Business
ProcessUnified CommunicationsCommunications
Unified
Commu-
nications
Business
Process
Internet
and PSTN
gatewayCEBP
Process-Centric
Equipment-Centric
Hardware
Software
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