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Collaborative supply chain management: The most promising practice for building efficient and sustainable supply chains

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Purpose ‐ The aim of this paper is to provide an overview of contemporary supply-chain management systems. Design/methodology/approach ‐ The paper highlights the examples of state-of-the-art practice in supply-chain management, and speculates about where this movement is headed. Some of the collaborative supply chain management products generating the most interest will also be examined. Findings ‐ Collaborative planning, forecasting and replenishment (CPFR) is the most recent prolific management initiative that provides supply chain collaboration and visibility. By following CPFR, companies can dramatically improve supply chain effectiveness with demand planning, synchronized production scheduling, logistic planning, and new product design. CPFR will force suppliers to innovate, building on strong one-to-one relationships that will drive smarter ways of doing things. Most companies and industries can benefit from CPFR. However, companies that experience variation in demand, buy or sell a product on a periodic basis, and those that deal in highly differentiated or branded products will benefit the most. Practical implications ‐ Practitioners can gain first-hand knowledge of the CPFR model, technology and factors influencing adoption. Practitioners can also find examples of state-of-the-art practice in supply-chain management, and study some of the collaborative supply chain management products generating the most interest. Originality/value ‐ The paper is valuable to practitioners interested in implementing CPFR in their organizations.
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Keywords: Electronic data interchange; Internet; Supply chain management

Document Type: Research Article

Publication date: June 12, 2007

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