A CPFR readiness assessment model

The retail industry is a pioneer in developing new supply chain practices arising from the fact that the environment is characterized by intense competition and the need to achieve supply chain cost savings. An initiative launched by the Voluntary Interindustry Commerce and Standards Committee (VICS) introduced a concept known as the Collaborative Planning, Forecasting and Replenishment (CPFR). The objective is to integrate business and supply chain processes and provide better visibility and create and effective supply chains. This research develops a CPFR Readiness Assessment Model, which enables organizations to understand their readiness in implementing CPFR. This model can provide an initial assessment of the supply chain and propose development initiatives that will assist organizations to move towards a more effective CPFR process. Through identification of key CPFR activities, the model enables organizations to view the required tasks for executing an effective CPFR process. It also provides an insight into the level of commitment required and the specialization necessary to advance through the various stages of CPFR. Furthermore, the model also suggests a 'Path-of-Progress' to guide organizations through a systematic CPFR development process through proper utilization of resources.