Supply chain integration (or synchronisation) is to a large extent still only a promise, despite many considerable efforts by organisations and their customers and suppliers. Lack of visibility of true consumer demand and collaborative relationships based upon joint decision making remain significant barriers to the goal of supply chain integration.
Collaborative planning, forecasting, and replenishment (CPFR) is a strategy which promises to overcome these barriers and seeks through joint planning, joint decision making and the development of a clearer understanding of the dynamics of the supply chain replenishment process to deliver some of the promised benefits of actual supply chain integration.
With firms taking cooperation to another level through involvement in collaborative planning/forecasting/replenishment (CPFR). Using automatic replenishment systems that restock inventory based on actual demand triggers rather than relying on long‐range forecasts and layers of safety stock. That means optimizing demand forecasting,
However, a greater understanding of the elements that make up supply chain collaboration, and in particular how the relevant cultural, strategic and implementation elements inter‐relate with each other is highly recommended. click here.