Tuesday, July 02, 2002

Adoption of CPFR remains slow. Computerworld reports that in spite of clear benefits to all trading partners, adoption of Collaborative Planning, Forecasting, and Replenishment (CPFR) in the consumer goods industry remains slow. Contributing factors include costs, resource requirements, lack of tools, difficulty in extracting data from legacy systems, and lack of trust between trading partners. In my opinion, the current economic climate forces companies to place a higher priority on simple cost-cutting initiatives. Although the benefits of CPFR are clear, they tend to be more strategic and longer term, and hence, lower priority. Conversely, now is the time to for retailers and their suppliers to take real steps in implementing CPFR, in order to reap the benefits when the economy ultimately turns around.

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