CPFR Collaborative Planning, Forecasting

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CPFR Collaborative Planning, Forecasting
Replenishment
CPFR Generic Model adapted from VICS CPFR
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A Guide to CPFR Implementation

• May 15th, 2001

Rita Marzian
METRO AG
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KEY QUESTIONS ANSWERS
What is CPFR?
Whats in it for you?
What are the challenges?
How do you get started?
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CPFR IS NOT

• Just technology
• Only business processes
• A one size fits all solution
• A replacement for ECR activities

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WHAT IS CPFR?

• Collaborating with your business partner by-
  Sharing objectives and tactics- Utilizing and
  sharing data- Agreeing on common goals

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WHAT IS CPFR?

• Collaborative Planning

• Collaborative Forecasting

• Collaborative Replenishment

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WHAT IS CPFR?

• It is about shoppers and consumers
• A set of business processes and supporting
  technology that integrates demand and supply
  side activities

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WHAT IS CPFR?
AN INTEGRATOR!
Demand Management
Enablers
Demand Strategy Capabilities
Common Data Communication Standards
Cost / Profit and ValueMeasurement
Supply Management
Integrators
CPFR
Supply Strategy Capabilities
eBusinessBusiness-to-Business
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ECR EUROPE PROJECT ON CPFR

• Our Objectives and extended scope
• Demonstrate potential benefits
• Identify challenges
• Define applicability to Europe
• Determine a methodology to start CPFR
• Participate in GCI Working Group

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POTENTIAL BENEFITS or Whats in it for you?

• Increased
• Forecast Accuracy (32)
• Service Level (0.5 - 2.0)
• On-Shelf Availability (over 99)
• Sales (1.5)
• Visibility of the supply chain

• Decreased
• Inventories (10 - 15)
• Rush Orders (33)
• Administration Costs

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POTENTIAL BENEFITS or Whats in it for you?
Results from ECR Europe survey of retailers,
manufacturers and suppliers
Most companies believe CPFR will realize
benefits in the short term (within 2 years)
2 4 years
lt 2 years
Remark gt 4 years (0)

• eExchanges will enable the fast adoption of the
  CPFR concept

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WHAT ARE THE CHALLENGES?

Importance of Barrier

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Orga-nisation
Benefit Sharing
Collaboration Willingness
Technology
DataQuality
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WHAT ARE THE CHALLENGES?
Very Inclined
Willingness to Collaborate
Reluctant
Own Company
Trading Partners
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IS CPFR TOO COMPLEX?
CPFR Generic Model adapted from VICS CPFR
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ACTUALLY,It is not..........!
Buyer
Collaboration
Collaboration
Seller
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HOW TO GET STARTED

• Assess yourself and your business partner
• Select the appropriate level of implementation
• Start small keep it simple
• Collaborate first, then integrate and automate

The main thing is
START!!
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HOW TO GET STARTED
Take guidance from A Guide to CPFR
Implementation
A Guide to CPFR Implementation

• Content
• Guidelines to start and develop CPFR initiatives
• Promotion planning process
• Survey of collaboration status in Europe
• Upstream supplier integration
• Toolkit

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CPFR IN ACTION

• CPFR pilots under the umbrella of ECR Europe

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THANK YOU....

• ... and see you this afternoon at our
  seminars!!!

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THANK YOU

• For any further information,
• please see us on Stand B19
• or contact us at
• jaume.ferrer_at_accenture.com
• georg.engler_at_accenture.com
• hans.rudolf.teuscher_at_accenture.com