Collaborative Planning, Forecasting and Replenishment (CPFR)

Collaborative Planning, Forecasting, and Replenishment (CPFR) is a strategy that encourages suppliers and retailers to work together closely. They share information about sales, inventories, and demand forecasts to plan better. This collaboration helps ensure products are available when customers want them, reduces excess stock, and minimizes stockouts. By coordinating efforts, both parties can respond more effectively to market changes, improving efficiency and customer satisfaction. Essentially, CPFR is a team approach to supply chain planning that leverages shared intelligence for more accurate forecasting and smoother operations.