Cpfar (Collaborative Planning, Forecasting & Replenishment)
CPFAR (COLLABORATIVE PLANNING, FORECASTING & REPLENISHMENT)
Introduction: CPFAR is a practice/concept that aims to enhance supply chain integration by supporting and assisting joint practices so as to minimize waste and have lean processes in place.
CPFAR Origins
CPFR began in 1995 as an initiative co-led by Wal-Mart 's and the Cambridge, Massachusetts software and strategy firm, Benchmarking Partners. The Open Source initiative was originally called CFAR (pronounced See-Far, for Collaborative Forecasting and Replenishment. Benchmarking developed CFAR with funding from Wal-Mart, IBM, SAP, i2, and Manugistics (the latter two are makers of accounting and supply chain management software respectively).
Warner Lambert (now part of Pfizer) served as the first pilot for CFAR which was successful. Benchmarking Partners then presented CFAR to the Board of Directors of the Voluntary Interindustry Commerce Standards Committee (VICS). VICS established an industry committee to prepare for rolling CFAR out as an international standard. Based on the suggestion of Procter & Gamble 's Vice President of Supply Chain, the standard was renamed CPFR to emphasize the role of planning in the collaborative process.
The committees mentioned above started taking CPFAR implementation of pilot runs and gained hand-on experience. VICS lead much of the research and implementation of CPFR initiatives through its pre-determined guidelines and other investigations carried out across sectors & geographic locations.
Key Features of CPFAR
1. Uses e-commerce technology and process models: The use of technology is a core element of the CPFAR model since it facilitates an efficient way to information sharing which in-turn is a key driver for smooth functioning of any process as such. With the impact of geographic distances subsiding in this era of globalization, technology has transformed the way we do business, transactions, etc.
a. It facilitates lower transactions costs and greatly
Introduction: CPFAR is a practice/concept that aims to enhance supply chain integration by supporting and assisting joint practices so as to minimize waste and have lean processes in place.
CPFAR Origins
CPFR began in 1995 as an initiative co-led by Wal-Mart 's and the Cambridge, Massachusetts software and strategy firm, Benchmarking Partners. The Open Source initiative was originally called CFAR (pronounced See-Far, for Collaborative Forecasting and Replenishment. Benchmarking developed CFAR with funding from Wal-Mart, IBM, SAP, i2, and Manugistics (the latter two are makers of accounting and supply chain management software respectively).
Warner Lambert (now part of Pfizer) served as the first pilot for CFAR which was successful. Benchmarking Partners then presented CFAR to the Board of Directors of the Voluntary Interindustry Commerce Standards Committee (VICS). VICS established an industry committee to prepare for rolling CFAR out as an international standard. Based on the suggestion of Procter & Gamble 's Vice President of Supply Chain, the standard was renamed CPFR to emphasize the role of planning in the collaborative process.
The committees mentioned above started taking CPFAR implementation of pilot runs and gained hand-on experience. VICS lead much of the research and implementation of CPFR initiatives through its pre-determined guidelines and other investigations carried out across sectors & geographic locations.
Key Features of CPFAR
1. Uses e-commerce technology and process models: The use of technology is a core element of the CPFAR model since it facilitates an efficient way to information sharing which in-turn is a key driver for smooth functioning of any process as such. With the impact of geographic distances subsiding in this era of globalization, technology has transformed the way we do business, transactions, etc.
a. It facilitates lower transactions costs and greatly
References: 1. Supply Chain Management - Strategy, Planning, and Operation - Third Edition By Sunil Chopra, Peter Meindl and D.V. Kalra 2. A Guide to CPFR Implementation – Accenture and ECR Europe. 3. www.wikipedia.org 4. www.tradeforum.org 5. www.businessweek.com/ 6. www.scm.ncsu.edu 7. www.vics.orgods (e.g. CRP) CPFR