How and What is Collaborative Planning Forecasting Replenishment (CPFR)? What are the benefits of CPFR to Walmart? How does Walmart achieves its Customer Service and Fulfills order in timely manner.

1. Presentation By:
 Rida Shakeel
 Talha Younus
 Danish A. Syed
Order Fulfillment
&
Customer Service
Presentation To:
Sir Waqar

2. {
WALMART
COLLABRATIVE PLANNING, FORCASTING, REPLENISHMENT

3.  Collaborative
is to work jointly with others.
 Planning
is an act of achieving something or a
process of doing something.
 Forecasting
is predicting of which is likely to happen
in the future scientifically.
 Replenishment
is to refill.
UNDERSTANDING CPFR:
Hence CPFR means Working Together to
Scientifically Achieve the Future by Refilling.
A set of business processes,
backed up by information
technology, in which members
agree to mutual business
objectives and measures, develop
joint sales and operational plans,
and collaborate to generate and
update sales forecasts and
replenishment plans.

4. LETS GET INTO THE
GAME!!
But with 3 Main
Difficulties:
1. Internal Change
2. Cost
3. Trust
CPFR comes into the Scene
WHERE:
• Demand is hard to Predict.
• New product introductions are frequent.
• Lead-times for production and/or
replenishment are long.
• Product life cycles are short.
• Forecast accuracy is low.
• High levels of inventory exist in the supply
chains.
• Consumer expectations are frequently not
met.
• Seasonal demand variances are significant.

5. CPFR’s ROLE:
WHAT Role does
CPFR Plays:
By Improving Responsiveness to
Consumer Demand
By Greater Forecast accuracy with
single shared forecast
By Increasing Sales
By Reducing Inventory
By Reducing Costs
By Improving production capacity
Utilization and
By Improving relationship b/w all
the trading partners.
CPFR plays an important role in
SCM of WALMART:
 By Avoiding Stock outs,
 By Avoiding Lost Sales,
 Lost Customers,
 By Better controlling inventory,
 By Eliminating bullwhip effect,
 By Reducing manual orders,
 By Reducing excess inventory,
 By Improving service levels.

6. THE MODEL!!
CPFR comprises of 4 Main Activities:
1. STRATEGY & PLANNING
2. DEMAND & SUPPLY MANAGEMENT
3. EXECUTION
4. ANALYSIS This figure represents participants
“BUYER & SELLER” work together to
satisfy the demands of an “END
CUSTOMER”.
Strategy & Planning: Establishes the ground
rules for the collaborative relationship.
Demand & Supply Management: Estimates
consumer demand and order and shipment
requirements over the planning horizon
Execution: Orders are placed, shipments are
placed and delivered, products are received
and stocked, sales transaction are recorded and
payments are made.
Analysis: Planning and execution are
monitored for exceptions, results are
aggregated and key performance metrics are
calculated.

7. THE MODEL!!
On the Outer Part is the Manufacturer’s Tasks & On the
Inner Part is the Retailer’s Tasks & in B/w its their
Collaborative Tasks.

8. Facts & Figures
Measuring Metrics
(Performance)
% age
Improvements
Cycle Time From 25 Days to 3
Days
Increased Sales 11%
On-Time Deliveries 74% to 94%
Inventory Turnover 7 Times / Day
Sales Forecast Accuracy 20% to 60%
Sales Lost due to Stock outs 23% to 15%
Out of Stock Orders Cut Down by 30%
Cancelled Orders Reduced 60%
On-time Deliveries Increased by 95%
• 693 Million
Items
• 20 Million
Customers
/ Day
• 5000 Stores
• 3500
Vendors
• 7.5 TB Data
of Inventory

9. Conclusion:
• Usage of CPFR creates a “WIN-WIN” situation
for all the Partners in a SCM Model.
• Assists in Decision Making by informed
demand.
• CPFR helps
• to Put the Right Product
• in the Right Place
• at the Right Time
CPFR has been implemented in
over 250 Organizations from
which some are below:
WALMART, KMART, CLARK,
GODREJ, WHIRLPOOL,
JC PENNY, KRAFT FOODS,
NABISCO, WEST MARINE,
POCTER & GAMBLE (P&G),
HEWLETT-PACKARD (HP),
JOHNSON & JOHNSON,
WARNER-LAMBERT,
Etc..
Mainly Consumer Goods & F&B
Product Companies.
CPFR SOFTWARE – Providers:
1. JDA
2. Oracle
CPFR SOFTWARE – Modules:
1. Forecasting
2. Planning & Procurement
3. Supply & Replenishment

10. Food for Thought!!
The point here is that the left hand HAS to know
what the right hand is doing.
THANK YOU FOR BEARING
US!!