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 Management in the Life Science Sector: Does Trust Play a Role?

Supply chain management has emerged as cross functional, cross company concept to improve coordination of entire value chains through coordinated actions of all companies in the value chain. It has received a major push from the availability of Internet-based information and communication technologies. The conditions in certain sectors are favorable for a realization of chain wide supply chain management. In other sectors, however, conditions are more complex and companies and value chains still struggle to exploit the potentials from supply chain management, in particular when it comes to cross enterprise coordination. This paper takes a complex supply network as example and discusses improvement potentials from supply chain management and developments in their implementation as well as barriers to the realization of chain wide supply chain management.supply chain management, trust, life science sector, Agribusiness, Industrial Organization,

Smart Retailing: a model to assess the economic sustainability of smart shelf-enabled dynamic pricing

Smart Retailing, a new approach to retail management that leverages digital technologies, is gaining much attention, as it enables innovation and improvements in consumers’ quality of life. However, the potentialities stemming from the application of such technologies are still not fully explored. Investment analyses addressing specific technologies could be useful to fill the academic gaps and guide retailers in their digital transition. This paper aims thus at evaluating the economic sustainability of investment in smart shelves, which are employed to perform dynamic pricing in presence of perishable goods. A model simulating the pricing variation in different scenarios was built and economic and financial analyses were performed to evaluate the sustainability of the investment. Data to feed the model were collected through semi-structured interviews with a smart shelf technology provider and three grocery retailers. The results show that the employment of smart shelves allows retailers to increase their profits. First, they are always able to assign to the product the price which most accurately reflects the customers’ willingness to pay. Second, the costs related to misplacement issues are reduced. This study contributes to the knowledge in this unexplored field by providing a model that simulates the dynamic pricing policy after the introduction of smart shelf technology and evaluates its economical sustainability. It also provides retailers who want to join the digital transformation of the stores with a useful tool to guide their investments

Innovative Logistics Management under Uncertainty using Markov Model

This paper proposes an innovative uncertainty management using a stochastic model to formulate logistics network starting from order processing, purchasing, inventory management, transportation, and reverse logistics activities. As this activity chain fits well with Markov process, we exploit the very principle to represent not only the transition among various activities, but also the inherent uncertainty that has plagued logistics activities across the board. The logistics network model is thus designed to support logistics management by retrieving and analyzing logistics performance in a timely and cost effective manner. The application of information technology entails this network to become a Markovian information model that is stochastically predictable and flexibly manageable. A case study is presented to highlight the significance of the model. Keywords: Logistics network; Markov process; Risk management; Uncertainty management

A simulation model to investigate impacts of facilitating quality data within organic fresh food supply chains

Demand for and production of organic fresh food play an increasing role worldwide. As a result, a growing amount of fresh fruits and vegetables has to be transported from predominantly rural production regions to customers mostly located in urban ones. Specific handling and storage conditions need to be respected along the entire supply chain to maintain high quality and product value. To support organic food logistics operations, this work investigates benefits of facilitating real-time product data along delivery and storage processes. By the development of a simulation-based decision support system, sustainable deliveries of organic food from farms to retail stores are investigated. Generic keeping quality models are integrated to observe impacts of varying storage temperatures on food quality and losses over time. Computational experiments study a regional supply chain of organic strawberries in Lower Austria and Vienna. Results indicate that the consideration of shelf life data in supply chain decisions allow one to reduce food losses and further enables shifting surplus inventory to alternative distribution channels

Minimizing food waste in grocery store operations: literature review and research agenda

Research on grocery waste in food retailing has recently attracted particular interest. Investigations in this area are relevant to address the problems of wasted resources and ethical concerns, as well as economic aspects from the retailer’s perspective. Reasons for food waste in retail are already well-studied empirically, and based on this, proposals for reduction are discussed. However, comprehensive approaches for preventing food waste in store operations using analytics and modeling methods are scarce. No work has yet systematized related research in this domain. As a result, there is neither any up-to-date literature review nor any agenda for future research. We contribute with the first structured literature review of analytics and modeling methods dealing with food waste prevention in retail store operations. This work identifies cross-cutting store-related planning areas to mitigate food waste, namely (1) assortment and shelf space planning, (2) replenishment policies, and (3) dynamic pricing policies. We introduce a common classification scheme of literature with regard to the depth of food waste integration and the characteristics of these planning problems. This builds our foundation to review analytics and modeling approaches. Current literature considers food waste mainly as a side effect in costing and often ignores product age dependent demand by customers. Furthermore, approaches are not integrated across planning areas. Future lines of research point to the most promising open questions in this field

Grocery omnichannel perishable inventories: performance measures and influencing factors

Purpose- Perishable inventory management for the grocery sector has become more challenging with extended omnichannel activities and emerging consumer expectations. This paper aims to identify and formalize key performance measures of omnichannel perishable inventory management (OCPI) and explore the influence of operational and market-related factors on these measures. Design/methodology/approach- The inductive approach of this research synthesizes three performance measures (product waste, lost sales and freshness) and four influencing factors (channel effect, demand variability, product perishability and shelf life visibility) for OCPI, through industry investigation, expert interviews and a systematic literature review. Treating OCPI as a complex adaptive system and considering its transaction costs, this paper formalizes the OCPI performance measures and their influencing factors in two statements and four propositions, which are then tested through numerical analysis with simulation. Findings- Product waste, lost sales and freshness are identified as distinctive OCPI performance measures, which are influenced by product perishability, shelf life visibility, demand variability and channel effects. The OCPI sensitivity to those influencing factors is diverse, whereas those factors are found to moderate each other's effects. Practical implications- To manage perishables more effectively, with less waste and lost sales for the business and fresher products for the consumer, omnichannel firms need to consider store and online channel requirements and strive to reduce demand variability, extend product shelf life and facilitate item-level shelf life visibility. While flexible logistics capacity and dynamic pricing can mitigate demand variability, the product shelf life extension needs modifications in product design, production, or storage conditions. OCPI executives can also increase the product shelf life visibility through advanced stock monitoring/tracking technologies (e.g. smart tags or more comprehensive barcodes), particularly for the online channel which demands fresher products. Originality/value- This paper provides a novel theoretical view on perishables in omnichannel systems. It specifies the OCPI performance, beyond typical inventory policies for cost minimization, while discussing its sensitivity to operations and market factors