How Contextual Factors Shape CPFR Collaborations: A Theoretical Framework

Abstract

Collaborative planning, forecasting, and replenishment (CPFR) is a form of cooperation in which supply network partners share data and work together to jointly manage important business processes in their value chain, such as defining the business plan and/or sales/order forecast. In doing so, various types of collaboration formats can be adopted, the types depending on the business processes involved in the collaboration, the differing ways of collaborating, and the different types of information and communication technologies used to support CPFR. By analysing the literature on CPFR and using Galbraith’s contingency theory as its starting point, this article creates a theoretical foundation for analyzing the relevant contingency factors for CPFR and how they can influence CPFR design. It is proposed that specific conditions can affect the information processing among companies during CPFR. The different types of information processing to be managed can influence choices considered by companies in terms of information and communication technologies and liaison devices adopted to support CPFR. This study is primarily theoretical; future empirical tests will be necessary to refine the contingency theory for CPFR proposed.