Question

Questions: How many steps are there in collaborative planning, forecasting, and replenishment (CPFR)?

Short answer

Answer

Collaboration between supply chain partners, like the manufacturers and retailers, may be useful for the business. Web-based technology is employed to derive a forecast consensus of all the members. Participants have numerous great advantages because of the sharing of data and future planning visibility.

Step-by-step solution

Definition of (CPFR)

Collaborative Planning, Forecasting, and Replenishment (CPFR)mean a collection of activities within which trading partners plan supply chain activities to fulfill customer demand at an all-time low possible cost. This approach involves business planning, sales forecasting, and replenishment of raw materials and finished goods.

CPFR establishes various ways to assist supply chain partners in achieving their common goals. Improved communication, collaboration, and data sharing are important to make sure the successful implementation of this strategy.

There are five main steps in (CPFR)

The Collaborative Planning, Forecasting, and Replenishment (CPFR) approach are utilized to derive consensus supply chain forecasts.The Collaborative Planning, Forecasting, and Replenishment (CPFR) consists of the next five steps:

1. Create a front-end agreement
2. Develop the joint business plan
3. Generate the sales forecast
4. Forecast sharing
5. Replenishment process