cpfr - model for supply chain co-ordination

Models for

supply chain

collaboration

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CPFR Overview

• Plan your extended supply chain

◦ Share forecasts and supply commits with customers and suppliers

◦ Get visibility to supplier capacity

◦ Reallocate key components ◦ Make alternate sourcing

decisions

• Manage inventory cost and improve fulfillment

◦ Suppliers manage your inventory

◦ Manage your customers’ inventory

• React quickly to supply chain exceptions

◦ Waterfall analysis◦ User-configurable exceptions◦ Automated exception

handling via workflow

Contract

Manufacturer

You SupplierCustomer

Run plan

Optional

Forecast

‘memory’

Supply commit

‘boards’

Supply commit

‘memory’

Demand

‘boards’

Run plan

Demand

‘systems’

Supply

forecast

Consensus

forecast


VICS CPFR Model

Definition◦ Collaborative Planning,

Forecasting and Replenishment (CPFR®) is defined as a business practice that combines the collaborative intelligence of multiple trading partners in the planning and fulfilment of customer demand.

Benefits◦ CPFR links sales and

marketing best practices, such as category management, to supply chain planning and execution processes to increase availability while reducing inventory, transportation and logistics costs.

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Manufacturer

Retailer

Consumer

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RFID In Action

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RFID readers and antennasA RFID reader consist of an antenna (or more) and an interrogator


Using barcode and RFID

across the supply chain


CHALLENGES

Supply chain has small objects at either end and big objects (containers) in the middle.

Shipper and retailer lose track of their goods in the middle.

Long range technology is needed for this ‘middle’ transportation domain.

Short range small asset technologies at either end.

Distribution

Center

ITEM

PACKAGE

TRANSPORT UNIT

PALLET

CONTAINER

MOVEMENT VEHICLE

Bar Code

Satellite

Active RF

Passive RF

FactorySupplier Customer

RTLS VideoHow Real Time Location System (RTLS) can be implemented using Wi-Fi triangulation


Advanced

ICT

Integration

COMMUNICATIONS ENABLED

BUSINESS PROCESS (CEBP)


CEBP: Integrating ICT to

Business applications

Communications Enabled Business

ProcessUnified CommunicationsCommunications

Unified

Commu-

nications

Business

Process

Internet

and PSTN

gatewayCEBP

Process-Centric

Equipment-Centric

Hardware

Software
