Presentation on theme: "Jim McLaughlin Past Chair VICS CPFR Committee"— Presentation transcript:
1Jim McLaughlin Past Chair VICS CPFR Committee Collaborative Commerce….from a VICS perspectiveAA&FA – Information Systems Committee MeetingOctober 19, 2006Jim McLaughlin Past Chair VICS CPFR Committee
2Topics VICS & CPFR Background Recent Research on Collaborative Commerce AdoptionAccenture CPFR Survey ResultsBest PracticeRetailer & Vendor BenefitsSuccess FactorsBarriers & OpportunitiesCPFR Certification Program
3VICS OverviewThe VICS Association takes a global leadership role in the ongoing improvement of the flow of product and information about the product throughout the entire supply chain in the retail & consumer goods industries.
4VICS Overview 230+ Member Companies Observing 20 years of Industry Defining Standards & GuidelinesRetailers, Manufacturers, Transportation Services, Service Providers & Standards OrganizationsSoftware ProductsConsultingEPC GlobalNRFGS1AA&FAAll Work is Conducted by Volunteers
5VICS Committees Apparel and Footwear, RFID/EPC Committee Collaborative Planning, Forecasting & Replenishment (CPFR®)VICS E-Collaborative Commerce InitiativeHardlines Data Synchronization CommitteeGeneral Merchandise & Apparel Data Synchronization CommitteeFloor-Ready Merchandise CommitteeLogistics CommitteeRetail Out-of-Stocks Committee
6VICS Committees Apparel and Footwear, RFID/EPC Committee Collaborative Planning, Forecasting & Replenishment (CPFR®)VICS E-Collaborative Commerce InitiativeHardlines Data Synchronization CommitteeGeneral Merchandise & Apparel Data Synchronization CommitteeFloor-Ready Merchandise CommitteeLogistics CommitteeRetail Out-of-Stocks Committee
7VICS CPFR® CommitteeMission – Develop guidelines an roadmaps for various collaborative scenarios, which integrate demand and supply planning and executionContinue to improve on existing guidelines, tools and critical first steps that enable CPFR implementation
9CPFR® for Apparel and Footwear Subcommittee Membership – Belk, Dillard’s, Federated Department Stores, Hudson’s Bay Co., Jones apparel Group, Kellwood Co., Levi Strauss & Co.,Liz Claiborne, Inc., Nygard International, Saks, Inc., VF Corp., Wacoal America, Inc., Wolverine World wide, Inc..
10CPFR® for Apparel and Footwear Subcommittee Mission – Identify, develop and document standardized collaborative processes for Apparel & Footwear industries, leveraging proven VICS concepts.Scope – Assortment Planning, Allocation, Analytics, Space Planning, Category Management and ReplenishmentCurrent activities are focused on Assortment Planning with the plan of piloting the newly defined process in QWho should join – Senior managers who understand the organization’s planning, forecasting and execution business processes.Contact – or
11History of Temporary Competitive Advantages in Supply Chain 2001: CPFR1996: ECR1992: VMI/Co-Managed1986: Quick Response (QR)1960s: Just-In-Time/Total QualityA long series of supply chain advances has delivered a long series of temporary competitive advantages. And another is on the way.In the early 70s Japan brought the quality revolution and Just In Time. Better cheaper customer service with far less inventory. Esp for early implementersAbout , QR was born as an application of JIT to general merchandise, particularly softgoods. Better cheaper customer service with far less inventory. Esp. for early. VMI or co-managed inventories was the next leap, with similar results if the CG did not cheat to make quartlery $.About 1992, after general merchandise started eating the grocers’ lunches with cost-effective customer service, supermarkets started to apply QR-like ideas plus some other good ones for better customer service with far less inventory. Esp for early.About 7 years ago, supply chain management, which offers, you guessed it, better customer service with far less inventory. Early implementers gaining well, esp CGs.Next, wave is something with collaborative. CYY. Next great competitive advantage. Millions for consulting & software.The next great gain is collaborative, but operating closer to real time. Buyers and suppliers share the data on sales and promotions and related topics. Systems compare actual to plan and alert mangers to the biggest problems to solve as they arise. Companies ratchet down inventories while keeping customer service levels at the highest economic level for increased in-stock sales. Data is synchronized at buyer and seller. And for early implementers it will come JIT.
13The Next Competitive Advantage: Collaborative Commerce 2001: CPFR1996: ECR1992: VMI/Co-Managed1986: Quick Response (QR)1960s: Just-In-Time/Total QualityA long series of supply chain advances has delivered a long series of temporary competitive advantages. And another is on the way.In the early 70s Japan brought the quality revolution and Just In Time. Better cheaper customer service with far less inventory. Esp for early implementersAbout , QR was born as an application of JIT to general merchandise, particularly softgoods. Better cheaper customer service with far less inventory. Esp. for early. VMI or co-managed inventories was the next leap, with similar results if the CG did not cheat to make quartlery $.About 1992, after general merchandise started eating the grocers’ lunches with cost-effective customer service, supermarkets started to apply QR-like ideas plus some other good ones for better customer service with far less inventory. Esp for early.About 7 years ago, supply chain management, which offers, you guessed it, better customer service with far less inventory. Early implementers gaining well, esp CGs.Next, wave is something with collaborative. CYY. Next great competitive advantage. Millions for consulting & software.The next great gain is collaborative, but operating closer to real time. Buyers and suppliers share the data on sales and promotions and related topics. Systems compare actual to plan and alert mangers to the biggest problems to solve as they arise. Companies ratchet down inventories while keeping customer service levels at the highest economic level for increased in-stock sales. Data is synchronized at buyer and seller. And for early implementers it will come JIT.
14What is Collaborative Commerce? It is the Inter-Enterprise business relationship and partnership consensusIt provides a mutual focus on the consumer, from store shelf demand through manufacturing supplyIt promotes mutual supply chain visibility and optimization of cross functional processes* Revolutionizing the Supply Chain* Advancing Business Relationships, Partnerships and Alliances* A new way of thinking about business relationships
15Next Step in Supply Chain Evolution Collaboratively Integrating Demand on An End to End BasisCPFR® Single Shared Consumer Demand & Order ForecastsMANUFACTURERSUPPLYLOGISTICSRETAILCONSUMERSingle Shared Order Fulfillment ForecastRemoving the WallsBetween trading partnersArena
16Next Step in Supply Chain Evolution Collaboratively Integrating Demand on An End to End BasisCPFR® Single Shared Consumer Demand & Order ForecastsMANUFACTURERSUPPLYLOGISTICSRETAILCONSUMERSingle Shared Order Fulfillment ForecastRemoving the WallsBetween trading partnersArena
17Collaborative Commerce Based on Aligning Supply and Demand CPFR® is a collaborative PROCESS approachto increasing product availabilitywhile reducing inventory across the supply chain.Trading partners share forecasts and other supply chain data over the Internet.CPFR® technology identifies exception conditions when:Plans do not matchForecast accuracy is out of toleranceOverstock and understock conditions existPartners resolve exceptions through negotiation and plan revisions.
18CPFR® Prepares Industry for Collaborative Commerce PlanningForecastingReplenishment
19CPFR® DefinitionA shared process of creation between two or more parties with diverse skills and knowledge delivering a unified approach that provides the optimal framework for customer satisfaction.Voluntary InterIndustry Commercial Solutions (VICS)Webster's definition: Act of working together as in writing a book. Cooperating with the enemy.
20Supply Chain Collaboration: More Specifically…Supply Chain Collaboration:What’s happening?
21Supply Chain Collaboration: More Specifically…Supply Chain Collaboration:What’s happening?A Collaborative Study on the Progress of Collaborative commerce
22Who Collaborated to perform this Study ? Soonhong Min, Anthony S. Roath, Patricia J. Daugherty, Stefab E. Genchev, Haozhe Chen and Aaron D. ArndtDivision of Marketing and Supply Chain Management, Michael F. Price College of Business, The University of Oklahoma, Norman, Oklahoma, USA, andR. Glenn RichyDepartment of Management and Marketing, The University of Alabama, Tuscaloosa, Alabama, USA
23About this Study….. Purpose Assess the current level of supply chain collaboration and identify best practicesApproachLiterature research, surveys and personal interviews resulting in a conceptual model profiling behavior, culture and relational interactions associated with successful collaboration.52 companies participated
24Some findings…. It works….if you work at it Benefits are measurable - Efficiency/effectiveness gains- Market position improvementIt takes time to developMore than one path to successKey enablers- Expectation Alignment- Information Exchange- Process, process, process
25A Model of Supply Chain Collaboration AntecedentsCollaborationConsequences
26A model of supply chain collaboration AntecedentsStrategic IntentInternal AlignmentsRelationship OrientationRelationship-Specific InvestmentFree Flow of Information and Heightened CommunicationFormalizationCollaborationConsequences
27What to Consider Before You Begin Strategic intent Capability-based function integrationInternal alignment Process mappingStreamlining internal operationRelationship orientation OngoingRelationalLong-term orientedRelationship-specific Timeinvestment PersonalEmployee trainingPhysical resourcesInformation technologyInformation flow Free flow of information and communicationFormalization Performance metricsGoals and objectivesRoles/responsibilities, and reportingCollaborative planning and schedulingCollaborative technologyType of shared information
28A Model of Supply Chain Collaboration AntecedentsStrategic IntentInternal AlignmentsRelationship OrientationRelationship-Specific InvestmentFree Flow of Information and Heightened CommunicationFormalizationCollaborationInformation SharingJoint PlanningJoint Problem SolvingJoint Performance MeasurementLeveraging Resources and SkillsConsequences
29Key Collaborative Activities Information sharing ForecastingCustomer demandMaterials requirementMarketing planningProduction capacity and schedulingJoint planning Mutual sales and performance targetsBudgetingPrioritizing goals and objectivesJoint problem solving Product development/redesignLogistics issues (shipping, routing, backhauling,pallet size, packaging)Joint performance Performance reviews on a regular basismeasurementMeasuring KPI (customer service, cost savings,productivity, etc.)Determining rewards and taking corrective actionsLeveraging Resources and capacitySkills and knowledgeSpecialization
30A Model of Supply chain Collaboration AntecedentsStrategic IntentInternal AlignmentsRelationship OrientationRelationship-Specific InvestmentFree Flow of Information and Heightened CommunicationFormalizationCollaborationInformation SharingJoint PlanningJoint Problem SolvingJoint Performance MeasurementLeveraging Resources and SkillsConsequencesEfficiencyEffectivenessProfitabilityReinforcement and Expansion of the Relationship
31Outcomes of Collaboration Mutuality Mutually beneficial and synergisticEfficiency Cost reductionReduced inventoryShortened lead-timeStreamlining supply chain processEffectiveness Improved customer serviceIncreased market shareBetter pricingNew product developmentProfitability Return on investmentSales per target segmentReinforcement and expansion Trustof the relationship CommitmentInterdependencyMutual involvement
32A Model of Supply chain Collaboration AntecedentsStrategic IntentInternal AlignmentsRelationship OrientationRelationship-Specific InvestmetnFree Flow of Information and Heightened CommunicationFormalizationCollaborationInformation SharingJoint PlanningJoint Problem SolvingJoint Performance MeasurementLeveraging Resources and SkillsConsequencesEfficiencyEffectivenessProfitabilityReinforcement and Expansion of the RelationshipExpand
33Closing Thoughts… in the relationships for less than five years On average respondent companies had only been involvedin the relationships for less than five yearsAll respondents reported good returns on their investmentsCollaborative relationships varied, some very basic, somequite comprehensive****Success is measured in differing ways****The study’s detail reflects the CPFR model elements
35PurposePresent the results of 2006 Collaboration Survey conducted by AccentureCompare the results of the 2002/2004 surveys with the 2006 as well as other collaboration surveys that have been conductedUnderstand the progress that has been made and the barriers and key success factors in Supply Chain Collaboration in the Consumer Goods & Retail industry
36Survey ApproachCompare the results of the 2002/2004 surveys with the 2006Three surveys were conducted, one each in 2002, 2004, and 2006Multiple executives from 45 Fortune 1000 companies were surveyedSurvey consisted of a mix of US and European companiesIndustry Specific - Consumer Goods & Retail IndustriesThe 2002 and 2004 surveys were cross industry emphasizing Manufacturing, High-Tech, and Transportation but also including Finance, Insurance and Utility industriesParticipants were asked a variety of questions about collaboration with supply chain partners:Benefits / BarriersKey areas for collaborationImplementation levelsUse of IT platforms in collaboration
37Key Findings: The bottom line up front Survey results have mixed messagesChallenges with trust between trading partners yet respondents found that collaboration yielded stronger strategic relationships with trading partnersExecutives continue to list Supply Chain collaboration as one of their key strategic priorities yet continued growth and progress of collaboration programs has slowedThe number of Collaborative business partnerships have begun to plateauTangible and measurable benefits continue to be a challengeCollaborative business practices are standard and expected between trading partners.
38Since 2002, the importance of collaboration has seen a significant increase on the agendas of top supply chain executives of Fortune 1000 companies.How important is developing collaborative relationships in Supply Chain Planning and Execution Operations with your trading partners?Source: Accenture 2006 Survey
39What are the drivers for collaboration growth from 2002 to 2006? 98% surveyed in 2006 classified SC Collaboration as ‘Somewhat’ or ‘Very’ Important for the next 3 yrsCollaborative pilots between well-known retailers and manufacturers have achieved well-documented benefitsExecutives are well aware of the importance of collaborative business processes“[Traditionally] collaboration was often viewed as a "nice to have," not a necessity. Our research indicates that during the past six months, CIOs and CTOs have increasingly focused on understanding the business value of collaboration and on enabling collaboration.” – Gartner Research, October 2005
40More companies are experiencing a “status quo” of collaborative activity; scaling collaboration may have reached it’s first plateauCompared to 3 years ago, would you say the level of collaboration conducted with your trading partners has: Increased, Decreased, or Remained the Same?
41Has Collaboration Hit a Plateau or Become a Standard Business Practice? The importance of collaboration continues to grow, however, the level of collaboration does not mirror this growthDo the trends for the level of collaboration in European companies differ from the level of collaboration trends for US companies?No. Forrester conducted a primarily American survey in January 2006 and similar results were obtained to the primarily European Accenture survey.“Leading firms that have invested in functional areas, traditional collaborative tools, and supply chain visibility have seen their ROIs plateau” - Forrester Research, January 2006Gartner’s Supply Chain Management Hype Cycle2004: Collaboration was in Trough of Disillusionment with 2-5 years until mainstream adoption2006: Collaboration is in Trough of Disillusionment with 5-10 years until mainstream adoption
42Progress over the last 3 – 4 years has been slower than predicted Progress over the last 3 – 4 years has been slower than predicted. There are still many programs in the pilot phase and only a handful of collaboration programs in the CG & Retail industry are matured.What is the level and status of your collaboration programs with your suppliers? (2006)54% of the companies surveyed are either in the pilot or rollout phase of their collaborative program
43Is there a correlation between the status of collaboration programs and the level of collaboration? Over half of the companies (54%) have majority of projects in the Pilot and Planned phasesThe survey results also indicated that over the next three years, the average company will still be in the Pilot phase for projectsIs this telling us that collaboration cannot be a standard business practice if the average project is not yet mature?Do the vendors that have “Remained the Same” make up the same portion that are “Mature” / “Very Mature” phases?There is no clear correlation between the company’s status of collaboration and its level of collaborationIs the implementation of collaboration hindered by available technology?
44IT Platforms are used to support the majority of Supply Chain collaboration programs. Are you using an IT platform to support SC collaboration with your partners?
45Although only half of companies have an IT Platform that supports collaboration, collaborative IT spending in 2006 / 2007 is expected to increase.Vendors Strive to Provide Unified Collaboration Platforms“The collaboration software and services market is evolving to support customers that are developing enterprise collaboration strategies” Forrester Research, August 2006IT spending in 2005 was lower than normal, however, in manufacturers are expected to increase IT spending especially their collaborative technology spending - Forrester Research, November 2005
46Although data synchronization and technology enablement hurdles seem low in the CG & Retail industry, there are a broad range of other issues to manage in SC collaboration programs.Which one of the following is the greatest barrier to collaborating with your trading partners?Lack of trustCultural/behavioralHave not Identified Right PartnerPerformance not easily MeasuredConcerns about Data SecurityTechnology and data hurdlesUnclear Value Proposition
47Hurdles and hindrances are a main factor for slowing collaboration growth Trust“42% of retailers and 43% of manufacturers believe there is a fundamental lack of trust between trading partners that stymies collaboration.” – Forrester Research, November 2005Accenture Client ExperiencesProcessInsufficient organizational / process enablement from partner or internalNegotiation process in hands of commercial and procurement organizations with no “end-to-end” view of total-cost of ownershipValueUnclear value propositionChallenges with measuring the value therefore it requires a leap of faith
48Cost reduction benefits continue to be a top driver for collaborative activities and the desire to build strategic relationships is stronger.Where have net benefits been realized as a result of collaborating with your trading partners?Stronger Strategic RelationshipsCost Reduction /SavingsIncreased Sales / Top Line Growth
49Net Benefits All three net benefits are even in weighting – why? Possibly because strategic relationships have developed over the course of the four years the survey has been conductedCase Studies show proof:CPFR pilots between retailers like Walgreen’s and manufacturers like Kraft have achieved well-documented benefits in increased inventory turns, reduced lost sales, and out of stocks.
50Levels of benefits realized from collaboration programs Executives consider SC collaboration as a strategic priority, but identifying benefits realized from past or present programs is not always obvious.Levels of benefits realized from collaboration programs
51Level of Benefits Level of benefits Only 15% of respondents rated the benefits as “High”65% of respondents rated the benefits as “Low” or “Not at all”32% of respondents don’t know if benefits have been realised or don’t focus on benefits from their collaboration programsWith collaboration, there is no control groupHard to measure benefits that are directly caused by collaborationHighest benefits have been achieved in:Improved product availabilityInventory reductionProcess cost savingsStronger strategic relationship
52Supply Chain executives see closer relationships with their partners as one of the most significant benefits (drivers) of a collaborative relationship.Which one of the following factors would most persuade you to invest in integrated processes and technologies with your trading partner?Source: Accenture 2006 Survey
53Significant Drivers of Collaboration In 2006, no one success factor stood out – success is down to a combination of success factors, including Safety & EnvironmentImproved track & trace, improved returns and recycling managementAll objectives for driving Collaboration are indicated to become more relevant over time, suggesting the reasons for Collaboration are becoming increasingly clear as the topic is better understood
54ConclusionAt the Executive level, Supply Chain Collaboration is seen increasingly important both across and within industriesCompanies continue to implementing collaborative processes across a wide spectrum of Supply Chain activitiesBut there are still too many pilots happening on unfertile ground (rules are contradictory with established practice)Key success factors and barriers to collaboration are gradually being recognized and addressedSuccess will hinge on practicing best practices over a long period (“the key to success is more in the cyclist than in the bicycle”)
55Kurt Salmon Assoc. & 7th online Survey results for 2005 – Collaborative Assortment Planning Sales Opportunities – move toward cut to order from cut to forecast. 25% more sales opportunities, increased order valueInventory Control – up to a 50% reduction in excess inventory. Increased order fill rates by 12%Cycle Time- Reduced cycle time by up to 4 weeks per market. Orders received 2-3 weeks earlier.Information Visibility & Accuracy – shared “single version of the truth” removed time, complexity and inefficiency out of the planning and execution processesOver 50 Retailer and Vendor respondees
56Collaborative Planning Best Practices: Retailer Benefits Better internal collaboration and streamlined processes drive more accurate plans, increasing effectiveness of external collaborationCross organizational access and visibility, 365, 24/7Corporate objectives immersed in collaborative processActionable data for more effective decision making“1 version of the truth”: All involved parties access real-time product information and plansPre-market collaboration empowers buyers to focus on product during marketCollaboration offers both visual and quantitative assortment planning – Style/Color/Size by storeEliminates much of the clerical activity involved in orderingThese are some of the results of implementing these best practices for assortment planning and collaborationCommunication is more efficient across the board, and visibility into corporate-wide planning activity is greatly increasedBecause you have a defined process in place and a real-time platform to execute on, information flow is much more efficientSingle version of the truthEvery party involved, including management, buyers, and planners, has access to up-to-date information, 24/7 from any Internet browserManagement can understand how plans are shaping up against financial and strategic objectives by running reports - At the press of a button, we can get instantaneous view on what is going on across organization, from the widest rollup down to individual door activityAnd historical data can be leveraged throughout the process to optimize current plansThe result of this enhanced visibility and communication is better decision making, which leads to more productive, more profitable assortmentsBeyond internal collaboration, communication between buyers and sellers (sharing both visual and financial information) is much more efficientUsers trade real-time product catalog and assortment information instantaneouslyBuy plans are always up to date with latest product informationEveryone is on the same page pre-, during, and post marketThe entire process is streamlined from financial planning through order placement, eliminating much of the stop and start of manual planning (Excel, fax, phone)These practices also reduces the administrative aspects of planning significantly so buyers can focus on what counts during market - productOne-click ordering, electronic order integrationAt the end of market or post, once have finalized the buy, we can generate a bulk PO on 7thOnline that can flow seamlessly into order management systemImproved planning, better product assortments on the selling floor, more productive SKUs and ultimately higher salesImproved planning, better product assortments on the selling floor, and ultimately higher sales
57Collaborative Planning Best Practices: Vendor Benefits Earlier, better aggregation of and visibility into demand dataEnables meaningful dialogue between merchants and vendor prior to market by providing clustering information, classification plans, units and dollarsHigher out of the box shippableProduction can be reconciled to demand 2-3 weeks earlierAdditional revenue opportunities can be identified and acted uponLess excess inventory liquidationImproved customer service levelsSingle view of the truth: Real-time buying activity is visible to vendor and retailer management at various levels of detailOrders received 1 – 4 weeks earlierOur vendors benefit in similar ways by implementing these systems and processes, in terms of visibility, real-time access to information, better communication and a streamlined processIn addition, these collaborative processes greatly improve their inventory management: the aggregation of and visibility into demand data throughout the process is critical!Vendors are able to get retailer demand data earlier in the processThey can generate a real-time comparison of corporate wide demand to production instantaneously, down to the size levelThe information can then be leveraged to modify production schedules & make better inventory decisionsThis demand visibility results in higher fill rates and reduced excess inventoryFurthermore, earlier insight into demand enables vendors to identify additional revenue opportunities and act on them in a timely manner
58Business Discovery meeting is essential Develop a front end agreement Success FactorsBusiness Discovery meeting is essentialDevelop a front end agreementEstablish goals and objectivesInvolve responsible business functions: MIO, Merchant Executive, Sales ExecutiveDefine resource involvement and commitments, e.g. Senior IT executive sponsorEstablish ground rules for resolutionShare proposed timelineGuidelines for making this work:The optimal collaborative assortment planning process begins with the creation of internal and external collaboration arrangements.Each organization specifies and documents the processes, timelines and systems that will be implemented.In additional to internal arrangements, retailers and vendors determine and document the methods and timing of the collaboration for each of their trading partner relationships.Partners agree upon the critical path to successful assortment execution, and collaboration calendars are formed.The agreed upon frameworks are documented and communicated throughout the organizations to all involved parties.The optimal collaboration arrangements include a great amount of detail, such as a definition of terms, designated roles and responsibilities, specified timelines, rules and legal implications, and metrics for success. For example, the arrangement should specify what, when and how financial planning information will be exchanged.
59Industry standards minimize cost and complexity Success FactorsIndustry standards minimize cost and complexityExecutive Sponsor drives business resultsMutually defined measurements are essentialFrequent milestone meetingsEngage both organizations at all levelsAnticipate the “bumps”Don’t underestimate change managementTo the extent possible, you should deploy “industry standards” practices from organizations such as VICS so that complexity and costs are minimized as you add new trading partnersIt is absolutely critical to have senior management level buy-in as well as regular feedback meetings to understand what’s working and what isn’t working. The collaboration arrangement should be treated as a formal trading partner agreement.Make sure that you have clearly defined and documented metrics and terms - even if objectives are aligned across trading partners, differing assumptions and inputs can lead to dramatically different results. The goal is for the retailer and the vendor to evolve into a mutually beneficial joint business planDepending on how advanced your assortment planning practices are, you may need to engage a third party business process consultant to assist with change management. Every buyer in your organization may have established their own assortment planning process - don’t underestimate the level of education, training, and controls required to execute the new best practices approach successfully.
60Barriers to Collaboration Process definition & complianceDisparate dataDirty DataMultiple information flowsInter-functional or inter-company TRUSTTools not used as intended or used at allPersonnel are not aligned to the customer focus (process, priority, rewards)
61Opportunities Realized Through Collaboration Re-engineered, streamlined processes that are cross functional and cross companyTrust is built across the trading partner relationship re-enforcing the process effectiveness (speed), information transparency nd innovationClean data that can be used without explaining why it needs reconciling and business processes that keep it clean. “one version of the truth”Consolidated information that is transparent and visible – expedites decision making (order vs. forecast cut plan)Realize the use of common, widely used tools that deliver the data/information needed.
63CPFR® Certification Program The overall objective is to provide a strong grounding in the foundational elements of CPFR that VICS, the leading and most knowledgeable organization around the globe, has developed over the last 8 years. This will position those who successfully complete the program to advance to the electives leading to the advanced cap stone program.
64CPFR® Certification Program Benefits Learn how collaboration will lead to increased profits, reduced costs and improved efficiencyFind out how CPFR provides thorough, accurate information that improves decision makingIdentify specific areas of opportunity to reduce costs and improve customer serviceLeverage CPFR best practices within existing initiatives, such as demand managementor visit
65CPFR® Certification Program Session I – Change Management, facing the resistanceThe first and foremost barrier to the implementation of collaborative business practices is resistance to change. This barrier exists within departments, divisions, companies, trading partners and practically every business entity. Therefore it is important to recognize these barriers and how to go about transformation, i.e. getting an organization to change. Every one has the responsibility to act as a change agent within their company and this program, led by an expert in change management, will provide well developed and tested suggestions that will lead to success.
66CPFR® Certification Program Session II – Setting the stage, getting ready to beginAnother important lesson learned through the VICS CPFR Committee is that to be able collaborate with trading partner, either up stream or down stream, it is critically important to be able to collaborate internally. In order to do so, a company must have an understanding of its strengths and weaknesses. To that end, the VICS self assessment and trading partner assessment will be presented and suggestions for how to effectively use these tried and tested tools
67CPFR® Certification Program Session III – Benefits determinationAny program must be able to show a return on investment, to be able to be financially justified to senior management. This session is designed to provide a strong business case for collaboration, to include a CPFR ROI Calculator. Proven to be effective, it will calculate the expected benefits to be realized by suppliers and retailers, This session will also provide participants to determine how their metrics compare to other companies in their competitive set, a most interesting and valuable exercise.
68CPFR® Certification Program Session IV – Data Synchronization – Best practices & protocolsThe importance of clean data cannot be understated, or the adherence to data standards. In order to be able to collaborate, to scale collaboration, a company must address the accuracy of their data. This session will deal with the questions of data standards, data synchronization, data registry, important communication standards and essential business practices and measurements. It is impossible to successfully collaborate unless basic business practices are performed flawlessly.
69CPFR® Certification Program Session V – The CPFR model – from Pilot to profitThere are several CPFR models that can be chosen from depending upon technology employed, organizational skills and the ability to accept and process data. This session will delve into these several models, to include Store and Distribution Center CPFR, benefits and requirements for their implementation. The original 9 step CPFR model and the recently developed CPFR model will be discussed, speaking to the attributes of each. This session includes fundamental that are essential to understanding collaboration. Several case studies will be presented highlighting the benefits and collaborative approaches that were taken by each company.
70CPFR® Certification Program Session VI – On-boarding and roles/responsibility matrixSuccessful CPFR initiatives are dependent upon a clear understanding of responsibilities that exist between trading partners. The process, information flows, exception processing and expectations must receive the commitment and the necessary resources to sustain the program. Ongoing and effective communications must be an important element of a structured program that ensues continuity, immediate alerts and understandable remedies.
71Summary Collaboration was Important Collaboration is Now Mission CriticalEmergence of the “Collaborative Culture”Extended Supply Chains Cannot Tolerate SilosOrganization SilosInformational SilosCultural SilosGlobal Collaborative Commerce is Now a Necessity