Supply Chain Essay

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CASE I LAUNCHING CPFR AT TEXAN FOODS: IMPROVING INVENTORY REPLENISHMENT WITH COLLABORATIVE ACTIVITIES AND TECHNOLOGIES Introduction Angela Preston sank back into the cushy leather chair in the Captain’s Club at LAX, and rubbed her eyes. She and her supervisor, Gordon Ross, had flown halfway across the country to Fresno to meet with representatives from a key supplier, Valley Bakers, to review the outcomes of their 180-day CPFR pilot program. When her drink arrived she hardly touched it,except to stir it nervously, until Gordon returned from the ticket counter. When she had agreedto accept the promotion to Category Director last year, she had no idea that the pressures ofthis job would be so enduring. The last six months had seemed like one long, dull headache. Since the initiation of the CPFR pilot program, it seemed that Valley, their supplier, had been making all the demands in this relationship. Wasn’t the customer supposed to be the one who was always right? Gordon eased into the chair next to her and immediately noticed the weary, pained look on her face. As Vice President of Supply Chain Operations for Texan Foods for the last 9 years, he had learned a lot about dealing with employee and customer frustrations. The CPFR pilot with Valley had tested his resolve as well. Valley’s CPFR team was unhappy with the small performance gains – and the occasional significant losses – that the program had delivered for the 34 SKUs that had been included in the pilot. Valley had wanted a more comprehensive level of collaboration from the very first day, and they were sure that Gordon was withholding information from them that would allow their small company to realize greater cost savings sooner. Always taking a conservative approach to new initiatives, Gordon had been adamant that the pilot program would only take a data-sharing approach,

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