33:799:301 Lecture Notes - Lecture 7: Procter & Gamble, Sales Operations, Listerine
13 Feb 2019
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Cpfr - collaborative planning, forecasting, and replenishing. Business planning, sales forecasting, any operations to replenish raw materials. Enhances the supply chain by aligning production planning to meet customer needs efficiently and effectively. Company cannot have multiple partnerships using same cpfr design. Not practical for unpopular products or predictable demand patterns. Integration of partner"s data in your own system has high management risk. Savings from cpfr may not be worth the cost. Mature products or products with low lead times benefit less from. Only beneficial for inwardly focused companies who don"t collaborate and have immature products. Walmart and procter & gamble created basis of cpfr with a system that constantly restocked listerine. Volvo had increased sales, so they increased production but ended up increasing inventory too much, had to implement cpfr system.
