Developing retailer selection factors for collaborative planning, forecasting and replenishment

Purpose– Selecting an appropriate partner is a vital and strategic decision-making process in any supply chain collaboration initiative. The purpose of this study is to introduce and explore the key factors considered by manufacturers in the selection of an appropriate retailer(s) for Collaboration and Collaborative Planning, Forecasting and Replenishment (CPFR) implementation and the relationships between these factors. Design/methodology/approach– A comprehensive literature review and experts’ views are applied to identify the main retailer selection and evaluation factors for CPFR implementation. A Fuzzy DEMATEL approach is then used to rank and analysis the interaction among identified factors. The findings are finally evaluated using a case study from a high-tech industry. Findings– The most important partner selection factors comprising of five dimensions and 24 factors are introduced. Of the identified criteria, three factors: manufacturer’s familiarity with the retailer, workforce skills and training and customer service orientation and capability have been identified as critical when selecting retailers for CPFR implementation. The technological capabilities dimensions are identified as the only net cause dimension which affects all other dimensions and its importance and role in simplifying and enhancing the speed and flexibility of CPFR implementation. Practical implications– The study identifies practical retailer selection factors for CPFR implementation and the causal relationships between factors. Developed retailer selection dimensions and criteria will assist manufacturers and retailers in understanding the role these factors play in CPFR implementation. This will also assist in appropriate retailer(s) selection by manufacturers. Originality/value– This study contributes to the literature on CPFR and tackles the important issue of selecting appropriate partners by developing retailer selection dimensions and criteria in CPFR implementation

A framework for collaborative planning, forecasting and replenishment (CPFR): state of the art

Purpose– Although many papers purport the significant value attributable to supply chain performance from the use of Collaborative Planning, Forecasting and Replenishment (CPFR), the question of ‘what are the main constructs and efficient framework for successful implementation of CPFR?’ remains largely unanswered. This question will be addressed by identifying and analysing the main constructs for successful implementation of CPFR. This paper attempts first to seek answers to this question. Second, to review the scope and value of CPFR using a devised state-of-the-art taxonomy for the classification of selected bibliographical references and third, to develop a conceptual framework by identifying areas which need more research. Design/methodology/approach– The method underlying this paper followed the steps of a systematic literature review process outlined by Soni and Kodali (2011). The review is based on a total of 93 papers published from 1998 to 2013 on CPFR. Findings– Four main constructs for successful implementation of CPFR have been identified: CPFR enablers, CPFR barriers, trading partner selection and incentive alignment. The findings indicate that there is a need for better understanding of the amount and level of information sharing as an important function of CPFR implementation. The paper also illustrates a number of shortcomings in the current literature and provides suggestions to guide future research on implementing CPFR in different industries. Practical implications– This paper is of interest to both academicians and practitioners as it helps to better understand the concept and role of CPFR in supply chain integration and its implementation results, enablers and inhibitors. The proposed framework in this paper can be used to give insight for future research and practice. Originality/value– The paper offers a framework for the review of previous research on CPFR and identifies the most important shortcomings that need to be addressed in future research. In addition, this review is both greater in scope than previous reviews and is broader in its subject focus

SUPPLY CHAIN INTEGRATION IN THE FOOD AND CONSUMER GOODS INDUSTRIES

The interorganizational structures necessary to implement and achieve the logistical performance improvements identified in the Efficient Consumer Response (ECR) initiative and related supply chain management concepts are difficult to develop. Firms continue to struggle to implement integrated programs and techniques, particularly with respect to changing operating structures, relationships, and mindsets to facilitate true supply chain integration. This research explores the logistical strategies and structures used by selected food and consumer goods firms to integrate their supply chains. It illustrates effective integration strategies and identifies critical success factors and barriers to successful ECR implementation. A framework is used to guide managers in developing the competencies essential to integrating the supply chain and to establishing the relationships necessary to operate in an ECR environment. The framework, entitled Supply Chain 2000, depicts supply chain value creation as achieving synchronization and coordination across four critical supply chain flows: product/service; market accommodation; information; and cash.Industrial Organization,

Performance of supply chain collaboration – A simulation study

In the past few decades several supply chain management initiatives such as Vendor Managed Inventory, Continuous Replenishment and Collaborative Planning Forecasting and Replenishment (CPFR) have been proposed in literature to improve the performance of supply chains. But, identifying the benefits of collaboration is still a big challenge for many supply chains. Confusion around the optimum number of partners, investment in collaboration and duration of partnership are some of the barriers of healthy collaborative arrangements. To evolve competitive supply chain collaboration (SCC), all SC processes need to be assessed from time to time for evaluating the performance. In a growing field, performance measurement is highly indispensable in order to make continuous improvement; in a new field, it is equally important to check the performance to test conduciveness of SCC. In this research, collaborative performance measurement will act as a testing tool to identify conducive environment to collaborate, by the way of pinpointing areas requiring improvements before initializing collaboration. We use actual industrial data and simulation to help managerial decision-making on the number of collaborating partners, the level of investments and the involvement in supply chain processes. This approach will help the supply chains to obtain maximum benefit of collaborative relationships. The use of simulation for understanding the performance of SCC is relatively a new approach and this can be used by companies that are interested in collaboration without having to invest a huge sum of money in establishing the actual collaboration

A Collaborative Planning Forecasting and Replenishment (CPFR) Maturity Model

This paper presents the development of a framework that organizations can use to assess their CPFR maturity. The proposed modeling framework identifies important functional and structural aspects of CPFR processes and formulates a method for evaluation on a variety of characteristics of CPFR. This paper uses a variant of multi-objective decision analysis to structure the framework into a hierarchical model for CPFR maturity assessment. Each area of the model was identified based on standardized, industry-accepted process definitions. Then, easy to answer questions were formulated to develop a multi-attribute assessment and scoring of capabilities. This model provides a structured representation of the CPFR process for maturity assessment and provides a path of progress for improving the state of CPFR within the  underperforming areas. The developed model can be used by engineering managers for assessing an on-going CPFR program across several areas and communicating the identified high impact improvement areas with various segments of the organization

Impact of information exchange on supply chain strategies

Due to globalisation and the competition faced from Asian countries, there is an emergent need to investigate how to extend the limited capabilities of developing countries in order to survive in the market as well as reach global market. Developing countries play an important role as OEM units to provide global markets with under-brand names. Many difficulties face the industrial zones in these countries in their attempt to reach this target and these prevent them from providing their own brands. For example, many sectors in Egyptian industry are outperformed by Chinese competition and have even lost their domestic market share. Textiles are one of the most affected industries as a result of this competition. The risk of Egyptian fabrics vanishing from global markets is indicated by a huge reduction in export rate after the quota phase-out. Egyptian textile producers rely on global agreements to reach global markets. The period after the Multi-Fibre agreement shows an obvious drop in exportation rates till the Qualified Industrial Zones (QIZ) agreement was issued. Can the same scenario occur after QIZ quota phase-out? What should Egyptian fabric manufacturer do? Since the situation is alarming and may result in exporting the high quality Egyptian cotton to global markets instead of to its domestic manufacturers, the flood of Chinese fabrics in Egyptian Markets requires that the question “how to survive and compete with low-cost Chinese fabrics?” be investigated. The aim of the research was to investigate the deficiencies experienced by Egyptian firms trying to reach global markets and maintain their domestic market share. The research conducted an exploratory-explanatory empirical study to identify the major issues facing textile fabricators in Egyptian industrial zones. Case studies and a survey outcome were matched to provide validated empirical findings. An Interpretive Structuring Modelling approach was used to indicate the stages of supply chain deficiencies based on the case study findings. The major issues causing supply chain deficiencies are defined from the case study analysis and validated using the survey approach. The outcome of the empirical study indicates that supply chain design, integration and IT infrastructure are considered as major issues that lead to the existing deficiencies of the textile industry supply chain in Egypt despite the low level assigned to their importance. At the same time, production and procurement issues are considered as dependant on poor supply chain design, IT infrastructure and unreliable forecasting despite the high level assigned to their importance. A stage-based model for supply chain deficiencies in the Egyptian textile sector was highlighted in this study to indicate dependency and driving power among internal deficiencies. A framework, indicates supply chain deficiencies and their leading factors in Egypt, was concluded from this study. The study points out a number of external issues related to the surrounding environment and the government’s role in contributing to the aggravation of the existing deficiencies. The research uses simulation techniques to test the proposed solution that might provide better supply chain performance. A System Dynamic approach is used to model a case study of the investigated industry. Different scenarios of fulfilling local and international orders have been tested. These scenarios are represented in: expansion of production capacity, reduction of inventory levels or reduction of procurement time. Since addressing the internal deficiency, which empirical study respondents’ pointed out as being the most important one, could not provide an adaquate solution for the existing deficiencies, supply chain re-structuring to represent a collaborative pattern between partners was, therefore, tested and proved to have a great effect on supply chain performance. A collaborative pattern among supply chain partners indicated its positive impact on supply chain performance. The simulation experiments prove that the individual decisions of supply chain partners cannot bring about improvement to supply chain cost and responsiveness. The negative impact of an unreliable logistic system on supply chain performance was confirmed through the simulation experiments. The study provides the managerial levels in textile organisations with a solid causal basis for the supply chain deficiencies in the Egyptian textile sector. The outcome of the work can be employed by governmental authorities to address such difficulties and accelerate the growth of this sector globally. The thesis provides the fundamentals for investigating deficiencies in developing countries that might be extended by other researchers to investigate other defective sectors in Egypt and other developing countries

Evidence on the Role of Supplier-retailer Trading Relationships and Practices in Waste Generation in the Food Chain

This report presents the results of the project entitled “Evidence on the role of supplier-retailer trading relationships and practices in waste generation in the food chain” commission by Defra (Project Code SFFSD0705) and undertaken by Cranfield University and IGD between July 2008 and June 2009. The overall aim of the project was to provide a qualitative analysis of the food and packaging waste arising from the link between food manufacturers and retailers in the UK. The specific objectives of the project were: To identify the root causes of waste between suppliers and retailers in the UK To assess the magnitude of each root cause To identify good practices and examine the enablers and inhibitors of their implementation To provide recommendations at a company and government level that will help the food and retail industries to jointly address the root causes of waste The study had a UK perspective and it focused on the relationship between food retailers and their suppliers, and how their business processes and practices affect waste. Waste of finished products, discarded by producers, wholesalers, hauliers or retailers was the primary focus, and waste arising during production and agricultural processes was excluded from the study. However, during the project we collected additional information concerning other stages of the chain and other countries, which we have used for comparative purposes