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Collaborative Planning, Forecasting and Replenishment (CPFR)

The CPFR reference model provides a general framework for the collaborative aspects of the planning, forecasting and replenishment processes (Wiehenbrauk, 2010)

Information about Collaborative Planning, Forecasting and Replenishment (CPFR)

Promoted by the Voluntary Interindustry Commerce Standards group (VICS), CPFR is a widely known practice used to create synergy between multiple trading partners (Wilding and Braithwaite, 2006). CPFR helps reduce inventory and achieve efficiency in transport and logistics planning through aligning and sharing sales, and marketing best practice (Bozarth, 2011). It can also incorporate promotions and change trends in demand while forecasting sales, deal with high inventories to guarantee product availability or address the lack of coordination between supplier, retailer and/or other functions (eg. marketing, financing, purchasing and logistics). The CPFR framework can be applied to a variety of industries. Customers here are placed at the centre while buyers, retailers and suppliers become collaborating participants (Voluntary Interindustry Commerce Standards Association, 2004).

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