Description
CPFR-A shared process of creation between two or more parties with diverse skills and knowledge delivering a unified approach that provides the optimal framework for customer satisfaction.
CPFR – An Introduction & Application
CPFR® Definition
A shared process of creation between two or more parties with diverse skills and knowledge delivering a unified approach that provides the optimal framework for customer satisfaction.
Voluntary InterIndustry Commercial Standards (VICS)
www.vics.org www.cpfr.org
The Nine Step CPFR® Model Model standardised by VICS
® CPFR
Value Delivery
Value Proposition
CPFR® Driver
Increased Sales
? Improved In-Stock ? Shared insights to Demand ? Seasonality/Regionality ? Promotional Causality
? Lower Product Returns ? Reduced Expediting Costs ? Optimized Production Cycles ? Less “Just-In Case” Stock ? Build to Order vs. Build to Stock
Reduced Operations Cost
Reduced Inventory
Improved Relations
? Jointly solve problems vs. blaming other party
The Globalization of VICS/GCI CPFR®
Benelux - 3
Delhaize le Lion Royal Ahold Vandemoorte
Spain
Eroski
Europe - 28
Asia - 7
Americas - 70
Canada - 2
Canadian Tire RONA
Switzerland
Nestle
Denmark - 2
Heineken Dansk
UK - 11
Argos ASDA Hasbro J. Sainsbury Kingfisher Lever-Faberge UK Somersfield Superdrug Tesco Unilever UK Woolworth’s
Taiwan
CMC
France-2
Carrefour Chanel
Mexico
Groupo Elektra
Germany - 4
Bayer Henkel Herlitz Metro
Argentina Italy - 2
Conad Barilla
Israel - 2
Supersol Truva
Japan - 3 Hong Kong
Jusco Kao Panasonic YKK
Unilever
USA – 66 Firms
A&P Best Buy Compaq Eckert GE Appliances Home Depot Johnson&Johnson Liquid Nails Ace Hardware Binney & Smith CVS Eli Lilly Harley-Davidson Inland Paperboard Kimberly-Clark Liz Claiborne Albertson’s Black & Decker Delta Faucet Federated Hasbro International Paper Kraft Manco Ashley Furniture Broyhill Do It Best Flowers Bakeries H.E. Butt J.C. Penney Lane Mars Bell Sports Colgate-Palmolive Eastman Chemicals Fuji Film USA Hewlett-Packard John Deere Levi Master Lock
Meijer Pacific Coast Feather
Merial Pharmavite
Mitsubishi USA PlumbPak
Nelson Procter & Gamble
New Balance Ralston Purina
How Sears and Michelin made it work
Sears-Michelin
• Implemented CPFR for passenger car tires • Partnership of more than 30 years • Sears : one of USA’s largest retailers • Michelin : major French tire company • Sears sold passenger car tires through its Sears automotive stores
Need for CPFR
• High inventory levels due to new operational procedures • Procedures aimed at improving fill rates • Fill rates still fell to unacceptable levels • Problem attributed to - lack of demand visibility throughout supply chain - lack of formal business process
Foundation for Collaboration
• Involved GNX- B2B exchange site for retail industry • Cross company teams formed • Joint mapping of business process • Identified 3 main areas of improvement - reducing inventory at Sears - reducing inventory at Michelin - increasing information visibility at both ends • Establishment of business rules
Implementation
• Project went live with 80 SKUs • Consolidated supply chain data available • Data hosted by GNX over the internet • Data included sales forecasts, inventory levels, production plans and actual sales • Provided both companies with single set of
meaningful and consistent data
Implementation
• Applied same set of business rules • Rules established by CPFR software • Helped in generating exception reports • More prompt resolution of problems
• Helped both partners to anticipate problems
Implementation
• Sears and Michelin meet monthly to discuss anticipated business • Meetings consist of reviewing marketing efforts, sales trends, forecasts etc • CPFR has helped to automate the generation of reports for the meeting
• Time better spent analyzing & deeper insights
Benefits
• Store in stock levels improved by 4.3 % • Sears distribution centre to store fill rate increased by 10.7% • Combined Michelin and Sears inventory levels
reduced by 25%
• Additional sales due to less stock outs
Process Benefits
• Documenting the process – allowed each
partner to walk in the other’s shoes
• Clearer understanding of the interactions in
the supply chain
• Exception management is standardized • Product transition – peek into the future • Problems addressed faster
Indian context
?Wipro is responsible for implementation of CPFR for Tesco. ?Patni is also into implementation of CPFR for its client as part of different Services being offered.
Reference
•http://www.wipro.com/retail/retail/casestudi es/tescocs.htm •http://www.patni.com/industries/manufacturi ng/manufacturing-scm.html •http://www.vics.org/committees/cpfr/
doc_367599854.ppt
CPFR-A shared process of creation between two or more parties with diverse skills and knowledge delivering a unified approach that provides the optimal framework for customer satisfaction.
CPFR – An Introduction & Application
CPFR® Definition
A shared process of creation between two or more parties with diverse skills and knowledge delivering a unified approach that provides the optimal framework for customer satisfaction.
Voluntary InterIndustry Commercial Standards (VICS)
www.vics.org www.cpfr.org
The Nine Step CPFR® Model Model standardised by VICS
® CPFR
Value Delivery
Value Proposition
CPFR® Driver
Increased Sales
? Improved In-Stock ? Shared insights to Demand ? Seasonality/Regionality ? Promotional Causality
? Lower Product Returns ? Reduced Expediting Costs ? Optimized Production Cycles ? Less “Just-In Case” Stock ? Build to Order vs. Build to Stock
Reduced Operations Cost
Reduced Inventory
Improved Relations
? Jointly solve problems vs. blaming other party
The Globalization of VICS/GCI CPFR®
Benelux - 3
Delhaize le Lion Royal Ahold Vandemoorte
Spain
Eroski
Europe - 28
Asia - 7
Americas - 70
Canada - 2
Canadian Tire RONA
Switzerland
Nestle
Denmark - 2
Heineken Dansk
UK - 11
Argos ASDA Hasbro J. Sainsbury Kingfisher Lever-Faberge UK Somersfield Superdrug Tesco Unilever UK Woolworth’s
Taiwan
CMC
France-2
Carrefour Chanel
Mexico
Groupo Elektra
Germany - 4
Bayer Henkel Herlitz Metro
Argentina Italy - 2
Conad Barilla
Israel - 2
Supersol Truva
Japan - 3 Hong Kong
Jusco Kao Panasonic YKK
Unilever
USA – 66 Firms
A&P Best Buy Compaq Eckert GE Appliances Home Depot Johnson&Johnson Liquid Nails Ace Hardware Binney & Smith CVS Eli Lilly Harley-Davidson Inland Paperboard Kimberly-Clark Liz Claiborne Albertson’s Black & Decker Delta Faucet Federated Hasbro International Paper Kraft Manco Ashley Furniture Broyhill Do It Best Flowers Bakeries H.E. Butt J.C. Penney Lane Mars Bell Sports Colgate-Palmolive Eastman Chemicals Fuji Film USA Hewlett-Packard John Deere Levi Master Lock
Meijer Pacific Coast Feather
Merial Pharmavite
Mitsubishi USA PlumbPak
Nelson Procter & Gamble
New Balance Ralston Purina
How Sears and Michelin made it work
Sears-Michelin
• Implemented CPFR for passenger car tires • Partnership of more than 30 years • Sears : one of USA’s largest retailers • Michelin : major French tire company • Sears sold passenger car tires through its Sears automotive stores
Need for CPFR
• High inventory levels due to new operational procedures • Procedures aimed at improving fill rates • Fill rates still fell to unacceptable levels • Problem attributed to - lack of demand visibility throughout supply chain - lack of formal business process
Foundation for Collaboration
• Involved GNX- B2B exchange site for retail industry • Cross company teams formed • Joint mapping of business process • Identified 3 main areas of improvement - reducing inventory at Sears - reducing inventory at Michelin - increasing information visibility at both ends • Establishment of business rules
Implementation
• Project went live with 80 SKUs • Consolidated supply chain data available • Data hosted by GNX over the internet • Data included sales forecasts, inventory levels, production plans and actual sales • Provided both companies with single set of
meaningful and consistent data
Implementation
• Applied same set of business rules • Rules established by CPFR software • Helped in generating exception reports • More prompt resolution of problems
• Helped both partners to anticipate problems
Implementation
• Sears and Michelin meet monthly to discuss anticipated business • Meetings consist of reviewing marketing efforts, sales trends, forecasts etc • CPFR has helped to automate the generation of reports for the meeting
• Time better spent analyzing & deeper insights
Benefits
• Store in stock levels improved by 4.3 % • Sears distribution centre to store fill rate increased by 10.7% • Combined Michelin and Sears inventory levels
reduced by 25%
• Additional sales due to less stock outs
Process Benefits
• Documenting the process – allowed each
partner to walk in the other’s shoes
• Clearer understanding of the interactions in
the supply chain
• Exception management is standardized • Product transition – peek into the future • Problems addressed faster
Indian context
?Wipro is responsible for implementation of CPFR for Tesco. ?Patni is also into implementation of CPFR for its client as part of different Services being offered.
Reference
•http://www.wipro.com/retail/retail/casestudi es/tescocs.htm •http://www.patni.com/industries/manufacturi ng/manufacturing-scm.html •http://www.vics.org/committees/cpfr/
doc_367599854.ppt