This book describes a practical, yet intensive, thought-provoking
business process that demonstrates how to implement CPFR and gain
quantifiable results, to be enjoyed by all parties to the value chain. It
promotes an understanding of how to overcome the barriers to CPFR,
which are primarily cultural, ignorance, and a desire to maintain the
status quo. It will become clear that technology is not a barrier to implementation
and that CPFR is in fact flexible and adaptable to various
business conditions and circumstances.
Supply chain management has been evolving for the past twenty-five
years, beginning with the traffic, order management, and warehousing
departments. They were ultimately brought together under the umxiii
brella of physical distribution. Subsequently inventory management and
customer service were included, enabling integrated logistics, followed
by production planning and procurement. Today we have supply chain
management, which is rapidly emerging into value chain management,
which recognizes the importance of demand in addition to supply.
In this continuum, sales forecasting may be the responsibility of one
department or be shared by several departments, generally operating in
an information stovepipe. The mission-critical information is given little,
if any, import and consequently drives the supply chain with incorrect
and/or untimely information. Current, fresh, visible information is
a key ingredient to realizing value chain excellence coupled with defined,
accepted business processes. CPFR clearly identifies the need for
collaboration among trading partners throughout the value chain and
identifies the financial and operational results that can be expected.