Aimof
a vertical co-operation is a minimisation of the storage areas and at
the same time a minimisation of the delivery time for the client with
customised production or a maximised availability (in stock rate) for
mass produced goods. While the technical product planning covers
logistics, marketing covers the demand prognosis. The following figure
shows the components with a closed loop of optimisation steps. Companies might be in the followingdevelopment phasesdepending on the status they have achieved in collaborative planning and forecasting (CPF). CPFR Collaborative planning, forecasting, and replenishmentmeans
that enterprises collaborate along the supply chain. The role of the
upstream partners (parts production or producer for the assembler) may
differ from the downstream process (assembling and retail). Supplier
managed inventory sees the supplier i.e. the upstream process
responsible for the planning/prognosis of the replenishing orders. With
the co-managed inventory the downstream process i.e. the receiver of
the ware is responsible. This way information gaps are avoided and the
so called bullwhip effect leading to complete runaway of demand and
supply quantities might be avoided by incorporating non regular changes
like market trends and orders into the planning process. An
advanced implementation of CPFR (Collaborative Planning, Forecasting,
and Replenishment) requires a connection of IT-systems and logistical
adaptation, thus a cost benefit analysis is necessary to account for.
After the euphoric uptake of e-Commerce not open standards and light
internet based appliances allow to implement cost efficient solutions.
The set up with a subset of suppliers is useful to debug the system
before the roll out for all supplier . Results Co-operations are made to benefit the partners. But it is difficult to present savings in the following areas:
Knowledge gain about potential deals
Knowledge gain about planning of the clients (procurement)
But there are figures for savings in the following areas:
Up to 24% less stocked items with improved forecasts
Up to 6% improved customer service with improved forecast of the demand
Up to 72% savings through a smaller failure rate with a co-operation managing deviations/exemptions
Up to 50% reduction of lead times with an automatic order generation
Up to 20% savings for transport costs with monitoring the production/completion status
Thefiguresof
this example showing a segment with weather and seasonal changes (West
Marine Inc.) speak for themselves. The retail chain improved the
in-stock rate to 96%, the forecasting quality rose to 85% and more than
80% of the scheduled delivery dates were kept. CORELOG Team
Companies might be in the following
CPFR Collaborative planning, forecasting, and replenishment
An
advanced implementation of CPFR (Collaborative Planning, Forecasting,
and Replenishment) requires a connection of IT-systems and logistical
adaptation, thus a cost benefit analysis is necessary to account for.
After the euphoric uptake of e-Commerce not open standards and light
internet based appliances allow to implement cost efficient solutions.
The set up with a subset of suppliers is useful to debug the system
before the roll out for all supplier .