Customer Collaboration (CPFR)

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:

  • Reducing inventories,
  • improving service levels; and
  • Increasing sales

Collaboration can greatly reduce the bullwhip effect experienced in downstream supply chains.

Collaborative Planning Forecasting Replenishment (CPFR)

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.

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Testimonials

“We selected GRA to proceed with implementation of the supply chain transformation because they had a reputation in the market for results delivery. This reputation proved to have merit. With their help we have increased service levels, improved our working capital and reduced our supply chains costs. Their consulting approach in implementation is unique as it delivers outcomes whilst ensuring they are sustained and owned by the business.”

– Brad Hurst, Regional Supply Chain Director ANZ & Global Supply Chain Integration Project Lead, Allnex

Typical results

  • 20-40% inventory investment reduction
  • increased service levels ranging up to 99.9%
  • 10%-15% reduction in supply chain operating costs
  • 5%-20% spend management savings
  • the ability to fund business initiatives from operating cash flow (OCF) improvements
  • improved return on capital employed (ROCE)
  • a minimum 3:1 ROI (10:1 to 30:1 typical)