Proctor & Gamble Utilizes Cprf to Optimize Its Supply Chain

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Proctor & Gamble Utilizes CPRF to Optimize its Supply Chain Companies are always striving to serve their customers successfully so that a relationship is built. That relationship is important to keep loyal customers and to attract new customers. One way to build a relationship between a company and customers is through developing a successful supply chain. Proctor & Gamble is a company who saw the importance of a supply chain and found a process that would benefit the company. Through the use of collaborative planning, forecasting, and replenishment (CPRF) Proctor & Gamble will optimize its supply chain. According to Andrews (2008) CPRF is “an evolving business practice that seeks to reduce supply chain costs by promoting greater integration, visibility and cooperation between trading partners’ supply chains.” This is a process that has taken older supply chain processes and developed them into this new process. The older processes included are just in time (JIT) and vendor managed inventory (VMI). These were combined to make this current or modern process of collaborative planning, forecasting, and replenishment (CPRF) (Andrews, 2008). This modern process works by forecasting customers’ needs and demands before making up product orders. Forecasting is done in a three step process. The first step is collaborative planning. The second step is collaborative forecasting. The third step is collaborative replenishment. You can see these steps listed in the chart below for more explanation. (CPFR Means, n.d.) Obviously forecasting is what drives the CPRF process. Both the buyer and the customers are involved in the forecasting (CPFR Means, n.d.). Because of the forecasting, it allows the supplier to create inventory in advance based on retailers predicted sales and demands. This allows the supplier to keep more of the higher demanded

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