Kraft Plus (SM) - Supply Chain

CPFR^® – Collaborative Planning, Forecasting and Replenishment

CPFR is a joint collaboration between a supplier and retailer to develop business plans, translate the business plan into a time-phased forecast, and then efficiently replenish to that forecast.

Industry Background

The CPFR industry standards were originally developed in the 1990’s as a result of several quite successful pilots involving multiple retailers and manufacturers. VICS (Voluntary Interindustry Commerce Standards) facilitated the revision of those industry standards due to the evolving needs and enviornment. Key business drivers of CPFR include:

Retail out of stocks, resulting in lost opportunity dollars
Excessive retailer and supplier inventory investment
The desire of the retailer and supplier to improve working capital

As a result, the industry standards were revised to detail four successful CPFR models:

Retail Event Collaboration: for highly-promoted channels or categories, increases the effectiveness of promotional spending and advertising
DC Replenishment Collaboration: for retail DC distribution, reduces logistics costs and inventory
Store Replenishment Collaboration: for direct store delivery or retail DC-to-store distribution, addresses store-level out-of-stocks and overstocks
Collaborative Assortment Planning: aligns sales strategy with the unique ordering requirements of fashion apparel and seasonal goods

Kraft’s Perspective

Kraft is actively partnering with customers to collaborate/share on events with sufficient lead-time, participate in post event analysis on major promotions and define best practices for promotional planning
Kraft’s DC replenishment partnerships expand the VMI relationship to encompass event collaboration and efficient supply chain practices

For more information, please contact your Kraft Customer Supply Chain Manager.

Supply Chain
	Supply Chain Consultancy
	On Shelf Availability
	CPFR
	Cross Dock
	E-Commerce