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Part - IX

• Category Management

  • Before beginning CPFR, both parties inspect shelf positioning and exposure for targeted SKUs to ensure adequate days of supply, and proper exposure to the consumer.

  • This scrutiny will result in improved shelf positioning and facings through sound category management.

• Improved Product Offering

  • Before CPFR implementation, the buyer and seller collaborate on a mutual product scheme that includes SKU evaluation and additional product opportunities.

5.2 CPFR Benefits for Supply

• Improved Order Forecast Accuracy

  • CPFR enables a time-phased order forecast that provides additional information, greater lead-time for production planning, and improved forecast accuracy vs. either stand-alone VMI/CRP or other industry tools.

• Inventory Reductions

  • CPFR helps reduce forecast uncertainty and process inefficiencies.

  • How much inventory does your company hold to "cover up" for forecasting errors or a trading partner's inability to have the product available in a timely manner?

  • With CPFR, product can be produced to actual order instead of storing inventory based on forecast.

• Improved Technology ROI

  • Through the CPFR process, technology investments for internal integration can be enabled with higher quality forecast information.

  • Your company will benefit by driving internal processes with common, high-quality data.

• Improved Overall ROI

  • As other processes improve, the return on investment from CPFR can be substantial.

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* Contributed by -
Deepak Bisht & Nilesh Dewangan,
Students of PGDIE,
NITIE, Mumbai.