Collaborative planning is an important development in increasing the efficiency and effectiveness of the extended supply chain.
70% of companies are experiencing increased Demand Volatility. This has been driven by a shift in customer buying behaviour and a lack of understanding about customer & markets. Demand driven organisations have 20% more perfect orders, hold a third less inventory and have lower supply chain costs.
CPFR increases visibility of demand signals and enables more efficient replenishment of products throughout the supply chain. Information is shared between suppliers and retailers to enhance planning to improve customer service outcomes through the systematic sharing of information.
This is important since it aims to improve efficiencies across the extended supply chain:
Collaboration can greatly reduce the bullwhip effect experienced in downstream supply chains.
Product demand can be perceived quite differently within different links of the supply chain and therefore order different quantities. One way counter this is to collaborate and share data up and down the supply chain. This will establish a demand-driven supply chain which reacts to actual customer orders.
GRA can develop demand sensing processes to enable you to fully leverage and utilise your customer’s and supplier’s data to enhance your supply chain planning processes.
GRA can also assess the capability gaps preventing return on investment of existing Collaboration processes to provide actionable insights to improve the ROI of the collaborative effort.
"GRA helped us reduce inventories and improve operating cash flow by $12 million within 12 months whilst improving stock availability in stores. All the more impressive considering we were growing rapidly, but experiencing tough retail trading conditions at the time."
– Peter Birtles, Managing Director, Super Cheap Auto Group