Supply chain collaboration 'vital' by 2020

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Supply Chain Collaboration: How to Implement CPFR and Other Best Collaborative Practices

10 January 2011 | Lindsay Clark

Consumers will be the driving force behind greater supply chain collaboration, a study has found.

The research by the ConsumerGoods Forum, an industry group that includes Unilever, Nestlé and Kraft among others, says that by 2020, the public will create demand directly from their homes, on mobile devices or in store.

They are the trigger for an optimised collaborative supply chain flow: this next level of supply chain optimisation is based on transparency and collaboration,” said the report, which was produced with consultancy Capgemini.

Over the next decade, supplier production will be brought into line with predicted and actual demands from consumers, rather than based on the forecasting models used today.

In the report’s vision of the future, products will be shipped to collaborative warehouses in which multiple manufacturers store their products. Competing firms will then collaborate to collect and deliver the goods. They will be driven by demand for carbon-efficient distribution and limited supply chain capacity.

There are clear trends that drive the need to optimise and share our supply chains,” the report said. “Increasing urbanisation – which leads to strict regulations by city governments – requires new collaborative formats for city distribution. Consumer awareness about sustainability demands a more CO2-friendly supply of products and services. Increased adoption of consumer technologies and the ageing population will significantly change shopping behaviour and will lead, for example, to strong growth in home shopping.”

The report can be downloaded here after registering.

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