Question

Questions: What is the first step in CPFR?

Short answer

Answer

Collaborative Planning, Forecasting, and Replenishment (CPFR) are the retail-level demand forecasting technique, which is successively accustomed synchronize all the forecasts, production, and replenishment plans upstream through the supply chain.

Step-by-step solution

Definition of (CPFR)

(CPFR) is the exchange of the chosen internal information on a shared webserver to provide reliable, longer-term future estimates of demand within the supply chain.

First step in (CPFR)

Creation of a front-end partnership agreement: The front-end partnership agreement includes:

1. The objectives (for example - inventory reductions, lost sales elimination, lower product obsolescence, etc.) to be gained through collaboration.
2. Resource requirements (for example - hardware, software, performance metrics) necessary for the collaboration.
3. Expecting the confidentiality associated with the prerequisite trust required to share the company's sensitive information may create a significant implementation problem.