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Collaborative Planning, Forecasting, and Replenishment (CPFR)


Collaborative Planning, Forecasting, and Replenishment (CPFR) is a strategic approach to collaboration between trading partners in the supply chain to jointly create plans, forecast, and optimize inventory. CPFR aims to improve supply chain efficiency and agility by promoting information sharing and collaboration between manufacturers, retailers and other supply chain partners.

The CPFR process typically includes the following steps:

Planning: collaborative development of sales and production plans based on real-time data and business analytics.
Forecasting: Collaborative creation of sales forecasts taking into account historical data, market trends and other influencing factors.
Inventory management: Joint monitoring of inventory and coordination of deliveries to avoid shortages and overstocking.

By implementing CPFR, retail partners can reduce inventory costs, improve product availability and increase customer satisfaction by achieving better alignment with market demand. CPFR also fosters partnerships and relationships between companies in the supply chain, which can lead to long-term benefits and competitive advantages.

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