Collaborative Planning, Forecasting And Replenishment Research Articles

A Comprehensive Roadmap for Connecting Industry 4.0 Technologies to the Basic Model of Collaborative Planning, Forecasting, and Replenishment (CPFR)

The search for competitiveness has led organizations to recognize the importance of implementing collaborative methods. In this context, Collaborative Planning, Forecasting, and Replenishment (CPFR) seek to relate customer demands to replenishment needs throughout the supply chain. The literature points to implementation difficulties, such as trust between partners and commitment, and to overcome these difficulties, the digital technologies of Industry 4.0 are emerging as an essential support. This paper aims to research the applicability and contribution of Industry 4.0 digital technologies to the CPFR, considering each stage of the CPFR. A systematic literature review identified an unexplored gap: the use and contribution of Industry 4.0 digital technologies to the functioning of the CPFR. Considering the sequence of the CPFR stages and their dependence on each other, a roadmap can be developed for using Industry 4.0 digital technologies in each stage of the CPFR. It was, therefore, possible to create a roadmap indicating, based on current literature, which Industry 4.0 digital technologies can enhance SCM at each stage of the CPFR. This roadmap has two significant contributions: (i) to guide companies in prioritizing the implementation of these technologies in support of supply chain objectives and (ii) to serve as a basis for further empirical studies, highlighting the development of this roadmap through its application in real situations.

Planning the activities of a metallurgical company based on the integration of S&OP and CPFR

Supply chain management of large metallurgical companies is complicated by working in conditions of risk and high uncertainty of activity. The traditional planning system does not allow for sufficient consistency and synchronization of the plans of structural units with each other and with the external environment of interaction. Based on the analysis of the economic planning management of the leading companies in the industry, it was found that the integrated planning system of the company currently contributes to solving these problems. The authors propose its formation based on the use of two information practices: S&OP (sales and operations planning) and CPFR (collaborative planning, forecasting, and replenishment with trading partners).Planning the activities of a metallurgical company based on the integration of S&OP and CPFR will allow: to increase the accuracy of forecasts of demand for the range of products offered; to more effectively manage the stocks of raw materials, rolled products and metal products; to improve coordination between the functional areas of the company; to provide flexibility in production planning.At the same time, the transformation of the planning and economic practice of a metallurgical company should take into account the risks of emerging difficulties in collecting and exchanging big data with counterparties, errors in forecasting indicators, as well as coordination of plans between integration participants, restructuring of business processes and organizational cultures of partners.

Collaborative Planning, Forecasting, and Replenishment (CPFR) to Reduce Bullwhip Effect: Case Study

Supply chain is basically an integrated system in the process of preparing and delivering products to consumers. This chain is also a network of numerous businesses that are interrelated and have a common objective. This company, which is engaged in the processing of soy sauce using soybeans as its raw material, produces sweet soy sauce and salty soy sauce. Production policy used in this industry was based on the number of requests at the store's sales area and the demand to anticipate fluctuating demand were added 10%. Inaccuracies in the number of requests result in a varied difference between the number of requests and the number of sales, causing overstocking when demand decreases or stockouts when supplies cannot meet demand or commonly known as the bullwhip effect. Based on these problems, this study aims to obtain the right production policy to minimize the bullwhip effect using the CPFR framework. The results of this study show that the bullwhip effect values ​​for sweet and salty soy sauce are 0.812 and 0.814, respectively.

Pengurangan Bullwhip Effect pada Rantai Pasok Air Minum Dalam Kemasan Menggunakan Metode Collaborative Planning, Forecasting, and Replenishment (CPFR): Studi Kasus

CV Tirta Alam Dodu is a privately owned company engaged in the beverage industry in the form of AMDK. The problem faced by the company is that there is a difference between demand and sales, or better known as the bullwhip effect problem. The purpose of this study is to reduce the bullwhip effect on the supply chain and optimize the amount of product inventory according to the amount of demand. The method used is the Collaborative Planning, Forecasting, and Replenishment (CPFR) method. Based on the results of the research conducted, it can be concluded that the analysis of demand forecasting calculations on AMDK products at CV Tirta Alam Dodu was carried out using historical data on product demand through five analytical methods, including Linear Trend, Moving Average, Exponential Smoothing, Decomposition, and Winter's Model. The best forecasting resulted in Winter's Model which showed the smallest error value compared to the other four models. The way to minimize so that it does not become a bullwhip effect is to use the CPFR method, where the bullwhip effect value is obtained on glass mineral water products and gallons of mineral water of 0,985 and 0,898, respectively. This result shows that there is no amplification of demand and has reached the company's target, which is to fall below number one. The way to optimize inventory so that there is no excess stock or shortage of stock in the product is to make the amount of inventory based on the amount of demand from the forecasting results plus the safety stock.

Causal modelling of the enablers of CPFR for building resilience in manufacturing supply chains

Supply chain resilience is widely receiving attention during the past decade. Collaboration and visibility enhancement in supply chains is a key to achieve resilience and robustness in supply chains. Collaborative Planning, Forecasting and Replenishment (CPFR) is always been one of the difficult, yet powerful tool for collaboration in supply chains. Companies, in general attempt to address the technological side of changes, but avoid addressing the non-technological side of it, while implementing CPFR. This paper aims to explore the technological and non-technological enablers of CPFR, separately considering the Indian manufacturing industries and study their causal relations, using the Interpretive Structural Modeling (ISM). The results are beneficial, as managers can concentrate on causal enablers, while implementing CPFR. The success factors for implementation can slightly vary across different industries, but the applicability of the result is wider due to several common issues that arise during its implementation. Thus, the paper aims to provide directions for considering the most influencing enablers that can act as critical factors in the successful implementation of the CPFR. These influential enablers can be given much focus to reduce the vulnerabilities and to enhance the resilience capabilities of firms and their supply chains.

AGRI-FOOD SUPPLY CHAIN HOLISTIC DESIGN: TOMATO PRODUCT APPLICATION

Geleneksel tarım-gıda tedarik zincirlerinde ürüne değer katmayan birden fazla aşama olup ürünlerin kalitesini ve fiyatını olumsuz yönde etkilemektedir. Ayrıca tarım-gıda ürünlerindeki enflasyon Tüketici Fiyat Endeksini de doğrudan etkilediğinden zincir üzerinde yapılacak iyileştirmelerin nihai tüketiciye katkısı yüksek olacaktır. Bu çalışma kapsamında tarım-gıda tedarik zincirinde değer yaratmayan katmanların olmadığı ve bütünleşik bir yaklaşımla iş birliğine dayalı bir metodoloji geliştirilmiştir. İlk aşamada ilgili paydaşlar sisteme kabulü ve operasyon süreçleri için Analitik Hiyerarşi Süreci (Analytic Hierarchy Process-AHP) yöntemi ile ayrı ayrı değerlendirilmiştir. Daha sonra Ortaklaşa Planlama, Tahmin ve İkmal (Collaborative Planning, Forecasting and Replenishment- CPFR) yaklaşımı çerçevesinde; doğrusal programlama yöntemiyle en uygun tedarik zincirleri belirlenerek kapasite dengelemesi yapılmıştır. Çalışmanın son kısmında ise metodoloji kapsamında kullanılan yöntemlerin doğrulanmasını gerçekleştirmek üzere domates ürünü üzerine bir uygulama AIMMS modelleme paketi üzerinde analiz edilmiş̧, elde edilen bulgular ve sonuçlar verilmiştir.

Reducing carbon footprint in a resilient supply chain: examining the critical influencing factors of process integration

Carbon neutrality and resilience are two of important goals pursued by supply chains today. This study seeks to determine how carbon footprint reduction (CFR) can be achieved in a resilient supply chain from a process integration perspective. Based on contingency theory, we employed the decision-making trial and evaluation laboratory (DEMATEL) approach to examine the critical influencing factors of process integration using evaluations from academic and professional experts. Our findings reveal that, first, at the strategic level, supply chain collaboration (SCC) and supply chain agility and responsiveness (SCAR) have the highest contributions to process integration. Second, process and control risks have the highest contributions in supply chain risk management; herein, collaborative planning, forecasting, and replenishment (CPFR) holds the highest contribution in the SCC, visibility and velocity have the highest contributions in the SCAR, and supply chain efficiency holds the highest contribution in supply chain flexibility (SCF). Finally, CPFR has a significant influence on both supplier and customer engagement, with supply chain intelligence influencing customer engagement in the SCC. Both the standardisation and parallel processes influence supplier spending in the SCF. These findings provide a new conceptual framework for empirical research and an action plan for supply chains to pursue carbon neutrality.

Application of system dynamics to reveal the suitable CPFR mode and unsold goods return policy for deteriorating items

With the intensification of global competition and rapid changes in customer needs, most companies focus on rapid customer response. This has caused problems such as shortened product lifecycles, diversified and small volume demands, and shortened lead time order. As a result, suppliers at all levels in a supply chain produce too many finished products, parts, or components, and increase inventory stock. This is an undesirable situation, particularly for deteriorating items. Increased inventory of deteriorating items does not only increase inventory cost, but also the product cost when the items lose function due to long storage time. In order to solve this problem, many scholars have proposed tools to improve supply chain performance, for example, collaborative planning, forecasting and replenishment (CPFR). Therefore, this research applied system dynamics to reveal the suitable CPFR mode for deteriorating items under two types of unsold goods return policies. The first model prohibits buyer to return unsold goods to seller, while the second model allows buyer to return unsold goods to seller. By using CPFR, buyer and seller can share, change and instantly update forecast information, both on the supply and demand sides. The inventory levels can be minimized and the bullwhip effect in supply chain can be resolved by CPFR to create a win-win situation for both seller and buyer. The results show that for deteriorating items, seller receives more profit than buyer in all four CPFR scenarios under the policy that buyer cannot return goods to seller. However, if buyer can return goods to seller, the seller’s profit is less than the buyer’s but the profit gap is not as wide as the previous model. Therefore, to maintain long-term collaborative relationship, seller should allow buyer to return goods. In both models, total profit is the highest when buyer is responsible for order generation in CPFR. This study applied system dynamics to illustrate the impact of different business models on supply chain performance and then to reveal effective strategy for supply chain partners.

Implementation of Collaborative, Planning, Forecasting and Replenishment (CPFR) to Reduce the Bullwhip Effect in MSME Sate Madura Cak Kholil

The aims of this study are: (1) to identify and analyze the estimated demand for chicken and goat satay products in the MSME of Sate Madura Cak Kholil; and (2) to find out the stock safety to overcome the surge in product demand at the MSME of Sate Madura Cak Kholil. The research method used is a descriptive method with a quantitative approach. The sample was determined based on a non-probability sampling technique using the purposive sampling method. The data used in this study included primary data and secondary data, namely data on supply and demand for the MSME of Sate Madura Cak Kholil. The results of the study indicate that the application of collaborative planning, forecasting, and replenish menthasan effect on reducing the bullwhip effect in the MSME of Sate Madura Cak Kholil.

The Prevention and Reduction of the Bullwhip Effect by Electronic Data Interchange and Collaborative Forecasting

The bullwhip effect is a phenomenon of curious amplification of variations in demand as one moves away from the final customer. Popularized by Lee and al., (1997), the bullwhip effect has negative consequences on all actors in the supply chain because it generates considerable loss of profits: Too much stock, loss of sales, poor customer service, insufficient quality and multiple disruptions of flow and organization. To prevent and reduce the bullwhip effect, various tools are recommended. The Electronic Data Interchange (EDI) is among the most important given its impact on accelerating information sharing throughout the supply chain. This paper aims to shed light on the role of EDI, VMI (Vendor-managed inventory) and CPFR (collaborative planning forecasting and replenishment) in the prevention and reduction of the bullwhip effect in the supply chain.

Design of a CPFR, Location, Inventory and Routing Approach to Diabetes and High Blood Pressure Medicine Supply Network Planning

Objective: Designing a CPFR (collaborative planning forecasting and replenishment) model for the delivery of diabetes and arterial hypertension medicines from a health insurance company (EPS) to a healthcare provider (IPS) and comparing the performance of this collaborative chain to that of the traditional one through their corresponding supply chain costs. Methodology: A series of collaboration agreements involved in joint planning were established according to the designed CPFR model. This allowed (i) raising the levels of interaction between the health insurance company, the healthcare provider, the supplying pharmaceutical laboratories, and the patients; (ii) determining demand forecasts; (iii) locating distribution centers; and (iv) defining medicine distribution strategies oriented to the minimization of costs along the chain. Subsequently, the main differences between the current operation and CPFR models at the level of structure and decisions were characterized and then evaluated in terms of supply chain costs. Results: The significant impact of the proposed model is demonstrated. The total monthly cost of operating the chain is reduced by 11.2 % on average. Within the proposed innovation, an outstanding place is held by the savings reached in the purchase and distribution of medicines from the laboratory to the distribution centers, and by the customer satisfaction differences, which increased 15.3 % on average during the studied six-month period.

Addressing the consensus on information sharing in CPFR information systems: Insights from manufacturer – retailer dyads

This study investigated the mechanism of improving consensus between one dominant manufacturer and retailers in evaluating retailers’ information sharing in a Collaborative Planning, Forecasting, and Replenishment (CPFR) system. IT capability, goodwill trust, and competence trust were proposed as antecedents of this consensus based on organizational information processing theory (OIPT). A matched questionnaire survey was conducted, generating 253 manufacturer-retailer dyads for analysis. Consensus on information sharing was operationalized by the degree-symmetric model (DSM). The empirical results showed that retailers’ IT capability, goodwill trust, and competence trust in the dominant manufacturer were positively related to the consensus on information sharing. Furthermore, the interaction between retailers’ IT capability and goodwill trust was negatively related to this consensus, whereas the interaction effect of retailers’ IT capability and competence trust was positive.

Is Collaborative Planning a Determinant of Financial Performance in Supply Chain?

As both the practice and the results of the contemporary studies show, collaborative planning, forecasting and replenishment (CPFR) improves the financial performance of supply chain members. The study investigated how Russian companies - the supply chain members, implement the process of CPFR in practice, and how implementation of the concept of collaborative planning affects the financial performance of the companies. The analysis of the obtained results revealed that collaborative planning drives the revenue of companies participating in the supply chain.

Risk mitigation in raw material distribution activities using house of risk method in manufacturing

Supply Chain is a sequence of production processes, include raw material supply activities (inbound logistics), production processes, and distribution activities (outbound logistics). Every supply chain activity has risk. A risk mitigation strategy is important because the company will be able to identify the right strategy to handle those risks. Companies must be able to predict all risks that occur in supply chain activities, both of inbound logistics and outbound logistics. A manufacturing company in Indonesia that produces military and heavy equipment doesn’t have a risk mitigation strategy in raw material distribution activity, so this research proposes risk mitigation strategies using House of Risk method with Supply Chain Operation Reference (SCOR) models. Identification of supply chain activities involving of company’s plan, source, make, deliver, and return. House of Risk has two phases, first used to identify risk event, risk agent, and determine severity and occurrence value and calculating the Aggregate Risk Potential (ARP), second used for risk mitigation. Research results found there are 35 risk events, 51 risk agents, and three mitigation strategies that can be implemented in the company. Mitigation strategies, include: calculating the recording of revenue records for errors in the estimation of production capacity risk, procurement is not according to plan risk, and many damaged materials risk; improving the number of operators for errors in estimated production capacity risk; and Collaborative Planning, Forecasting, and Replenishment (CPFR) for error in MRP simulations risk.

An interpretive structural modelling of enablers for collaborative planning, forecasting and replenishment implementation in high-tech industries

The collaborative planning, forecasting and replenishment (CPFR) initiative is an increasingly popular approach that helps firms better collaborate with others within supply chain and coordinate activities to serve customers with improved service level and precise demand forecasting. It is highlighted in the literature that firms for successful CPFR implementation need to identify its critical factors (CF) consisting of enablers and barriers. Thus, the aim of this paper is to identify effective enablers and their relationships which enable firms to successful implementation of CPFR through the development of a structural model. To complete this task, ISM approach is applied by following a set of structured steps with a group of CPFR experts from industry/academia and Matrice d'Impacts Croises Multiplication Appliquee aun Classement (MICMAC) analysis to identify the driving and dependence powers. Enablers of successful CPFR implementation are identified and classified as managerial, technological, environmental, implementation process, organisational and cultural, 13 of which are identified to be important. A structural model is finally developed based on the most dominant enablers. The enablers identified in this research can serve as a roadmap to CPFR implementation in high-tech industries.

An interpretive structural modelling of enablers for collaborative planning, forecasting and replenishment implementation in high-tech industries

The collaborative planning, forecasting and replenishment (CPFR) initiative is an increasingly popular approach that helps firms better collaborate with others within supply chain and coordinate activities to serve customers with improved service level and precise demand forecasting. It is highlighted in the literature that firms for successful CPFR implementation need to identify its critical factors (CF) consisting of enablers and barriers. Thus, the aim of this paper is to identify effective enablers and their relationships which enable firms to successful implementation of CPFR through the development of a structural model. To complete this task, ISM approach is applied by following a set of structured steps with a group of CPFR experts from industry/academia and Matrice d'Impacts Croisés Multiplication Appliquée àun Classement (MICMAC) analysis to identify the driving and dependence powers. Enablers of successful CPFR implementation are identified and classified as managerial, technological, environmental, implementation process, organisational and cultural, 13 of which are identified to be important. A structural model is finally developed based on the most dominant enablers. The enablers identified in this research can serve as a roadmap to CPFR implementation in high-tech industries.

A theoretical framework to adopt collaborative initiatives in supply chains

Abstract Collaborative initiatives emerged in the 1980s as a means to increase inter-organizational cooperation, thereby achieving performance improvements in supply chains. Despite this, no consensus exists among researchers with respect to which collaborative initiatives should be deployed along a supply chain. This study analyzes five collaborative initiatives—Quick Response (QR), Efficient Consumer Response (ECR), Continuous Replenishment Program (CRP), Vendor Managed Inventory (VMI) and Collaborative Planning, Forecasting and Replenishment (CPFR)—by conducting a systematic literature review, aiming to develop a theoretical framework to guide the decision-making process of adopting and implementing these initiatives. Based on the characteristics of the collaborative initiatives, expected benefits, reasons for adopting, and possible barriers found in the literature review, a theoretical framework was developed as a flowchart, clearly indicating to decision-makers the main aspects of concern when adopting one or more collaborative initiatives and highlighting the need to constantly monitor the chosen initiative’s performance.

COLLABORATIVE PLANNING, FORECASTING, AND REPLENISHMENT IMPLEMENTATION: A CASE STUDY OF A MAJOR GROCERY RETAILER IN SOUTH AFRICA

The purpose of this study was to investigate the key factors that affect the implementation of collaborative planning, forecasting, and replenishment (CPFR). A single case study method was adopted, examining a critical case in the South African grocery retail sector. Semi-structured interviews were conducted to collect data. The study confirmed five of the six key factors affecting CPFR implementation that have been identified in the literature. Two new key factors, business understanding and a common goal, were identified. The study also determined the framework that the focal firm used to implement CPFR. The findings aid supply chain managers in understanding and leveraging the key factors that affect the successful implementation of CPFR. The framework can be used for benchmarking and guiding managers through the process of implementing CPFR.

COLLABORATIVE INITIATIVES: MOTIVATORS, BARRIERS AND BENEFITS

ABSTRACT Purpose: To propose a classification of the different types of motivators, barriers and benefits existing in the processes of adoption of collaborative initiatives between companies within the supply chain. Originality/value: The results achieved assist managers to know the different types of motivators that drive the adoption of these initiatives, the benefits that can be achieved and the barriers that can be encountered, hence avoiding unsuccessful implementations. Researchers provide a better theoretical understanding of the different types of components present in these initiatives, paving the way for the search for empirical evidence. Design/methodology/approach: A systematic review of the literature, focusing on five initiatives: Quick Response (QR), Efficient Consumer Response (ECR), Continuous Replenishment Program (CRP), Vendor Managed Inventory (VMI), and Collaborative Planning, Forecasting and Replenishment (CPFR). Findings: The motivators for adopting these initiatives are related to the economic or market changes and/or the organization of these companies. The barriers are classified as cultural, behavioral and physical and the benefits are classified as primary and secondary; showing that the primary benefits must be achieved in order for the secondary benefits to appear. The work shows that despite the use of similar nomenclatures, the concepts used may be different for various contexts. In addition, the work shows that information and communication technologies cease to be a barrier and become a facilitator for companies interested in collaborating in their supply chain. The importance of human resources is also highlighted.

Enhancing supply chain performance through collaborative planning, forecasting, and replenishment

PurposeDespite the importance of collaborative planning, forecasting, and replenishment (CPFR), its influence on supply chain innovation capability (SCIC) and supply chain performance (SCP) has not been sufficiently examined. The purpose of this paper is to examine the antecedence of SCP through CPFR and SCIC.Design/methodology/approachThrough cluster and stratified random sampling, 286 responses from top managers of 1,574 Nigerian manufacturing companies were analyzed. Data analysis was performed using structural equation modeling with AMOS graphics.FindingsThe results show that SCIC has a full mediating effect on the relationship between CPFR and SCP. Specifically, CPFR has a significant relationship with both SCP and SCIC, and SCIC also relates significantly to SCP.Practical implicationsThis study offers implications for manufacturers in developing countries in general, and in Nigeria in particular, by providing a guideline on how to improve SCP through CPFR.Originality/valueThe paper contributes to the limited studies on CPFR and SCP by extending this line of study into the realm of innovation capability and innovation. It integrates the social exchange theory and the dynamic capabilities theory to examine the collaborative processes of CPFR in the supply chain context. This study stressed the importance of boundary theoretical spanning by extending CPFR and SCP into the domain of innovation capability.