Submitted To Prof.R.K.

Singal

Submitted By Santanu Dutta PG-11-038

is the process of setting up a continual line of communication between distributors and those customers with the ability to predict the future needs of the products they buy from the distributors. ..When the customers work schedule is developed, their system automatically alerts the distributors system indicating the time when they will require specific quantity of products. . Any changes in the work schedule will be automatically communicated and adjusted for. .Collaborative forecasting involves the sharing of realtime demand forecast data amongst the members of the supply chain.

Most firms implement CPFR based on Voluntary Inter industry Commerce Standards Process Model

Step 1: Develop Collaboration Arrangement Step 2: Create Joint Business Plan Step 3: Create Sales Forecast Step 4: Identify Exceptions for Sales Forecast Step 5: Resolve/Collaborate on Exception Items Step 6: Create Order Forecast Step 7: Identify Exceptions for Order Forecast Step 8: Resolve/Collaborate on Exception Items Step 9: Order Generation
4

Better synchronization between supply and demand Improved forecast quality

Improved capacity utilization Increased inventory turnsover Increased customer satisfaction Reduced effective lead-times

Objective of CPFR Value of CPFR Optimize supply chain Broad and open exchange of forecasting Improved demand forecasts, information With the right product Improve forecasting Delivered accuracy when both the buyer and seller At right time collaborate Right location Joint knowledge of base sales, promotions, store Reduced inventories, openings or closings, & Avoidance of stock-outs new product introductions. Improved customer service.

Collaborative Forecasting is in the Inventory Management cluster of RosettaNet.

Business Planning
Process scope
Agree collaboration processes for planning, forecasting, replenishment and exception handling Create TPA Create joint business plan

Strategic Forecasting
Capacity Planning Share strategic forecast and reply Identify exceptions Collaborate on exception items

Order Forecasting
Replenishment Planning Share order forecast and reply Identify exceptions Collaborate on exception items

Replenishment
Execution Identify exceptions Collaborate on exception items

Total
Location A Location B Location C Level of product hierarchy RosettaNet PIP
Source: RosettaNet

Supply

Demand

Supply

Demand
Supply Supply Demand Demand Demand

f/c owner/recipient's PRODUCT FAMILY /GROUP or PRODUCT TECHNOLOGY

Supply

f/c recipient's PRODUCT

PIP4A1, 4A5, 4A6, 2C8 7B3 & 7B4

PIP4A2, 4A3, 4A4, 4A5 & 4A6

PIP4A2,4A3, 4D1 & 4A6

Long Time Horizon

10

Short Time Horizon

Business Planning
Process scope
Agree collaboration processes for planning, forecasting, replenishment and exception handling Create TPA Create joint business plan

Strategic Forecasting
Capacity Planning Share strategic forecast and reply Identify exceptions Collaborate on exception items

Order Forecasting
Replenishment Planning Share order forecast and reply Identify exceptions Collaborate on exception items

Replenishment
Execution Identify exceptions Collaborate on exception items

Total
Location A Location B Location C Level of product hierarchy RosettaNet PIP
Source: RosettaNet

Supply

Demand

Supply

Demand

Exception Management
Supply Supply Demand Demand Demand

f/c owner/recipient's PRODUCT FAMILY /GROUP or PRODUCT TECHNOLOGY

Supply

f/c recipient's PRODUCT

PIP4A1, 4A5, 4A6, 2C8 7B3 & 7B4

PIP4A2, 4A3, 4A4, 4A5 & 4A6

PIP4A2,4A3, 4D1 & 4A6

Long Time Horizon

11

Short Time Horizon

 Comparison
Threshold Incident Metric

Exceptions

Exceptions

Exceptions

Exceptions

Information

Exceptions

12

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