3.2 Collaboration

Question 1

Process-Driven Collaboration Concepts

Answer 1

▪ Information Sharing (IS)
▪ Continuous Replenishment Programs (CRP)
▪ Vendor Managed Inventory (VMI)
▪ Collaborative Planning, Forecasting, and Replenishment (CPFR)

Question 2

Technology-Driven Collaboration Concepts

Answer 2

▪ Electronic Marketplaces
▪ Tracking and Tracing
▪ Collaborative Supply Chain Management Systems

Question 3

Information Sharing (IS)

Answer 3

▪ Retailer shares information about demand and inventory with the manufacturer
▪ Retailer continues to place orders

Question 4

Continuous Replenishment Programs (CRP)

Answer 4

▪ Manufacturer regularly replenishes inventory of retailer
▪ Replenishment based on PoS or inventory data
▪ Inventory is owned by retailer

Question 5

Vendor Managed Inventory (VMI)

Answer 5

▪ Manufacturer takes over responsibility for inventory management of retailer
▪ Planning based on PoS data
▪ Inventory is often owned by supplier until it is sold by the retailer

Question 6

Collaborative Planning, Forecasting, and Replenishment (CPFR)

Answer 6

▪ Collaborative planning, forecasts and inventory planning by retailer and manufacturer

Question 7

Collaborative Planning, Forecasting, and Replenishment (CPFR) - Objective

Answer 7

Increasing product availability while reducing inventory, transportation and logistic costs

Question 8

Collaborative Planning, Forecasting, and Replenishment (CPFR) - Requirements

Answer 8

− Synchronizing data
→ Finding and eliminating inconsistencies in forecasts and other metrics (inventory, availability)
− Standardizing the exchange of information

Question 9

Collaborative Planning, Forecasting, and Replenishment (CPFR) - Potentials

Answer 9

− Reduction of retail inventories
− Reduction of inventories along the supply chain

Question 10

Fig. Comparison of Material and Information Flows

Answer 10

Question 11

Benefits of collaboration

Answer 11

▪ PoS data available to manufacturer
▪ Improving forecasts of manufacturer
▪ Better matching of supply and demand
▪ Increased supply chain profits regarding retailer and manufacturer margins

Question 12

Problems with collaboration

Answer 12

▪ Sharing / collaborative use of (partly) confidential data
▪ Retailer sells multiple competitive products

Question 13

Fig. CPFR Reference Model

Answer 13

1. ▪ Rules of collaboration
   ▪ Joint business plan
2. ▪ Demand forecast
   ▪ Planning orders, shipments
3. ▪ Place orders
   ▪ Prepare/deliver/receive shipments
4. ▪ Monitor activities for exceptions
   ▪ Calculate and share KPIs

Question 14

Fig. CPFR Reference Model: Tasks

Answer 14

Question 15

Fig. CPFR Reference Model: Collaboration Role Alternatives

Answer 15