The could be said in a way

The benefits derived from the use
of GPA is the exchange of information that the CPFR intends to expand and
amplify thanks to the new information and communication technologies. As well as
the daily calculation of forecasts based on data collected each day. This hyper
responsiveness to demand optimizes truckloads, delivery routes, and full pallet
rates. The CPFR, medium-long term tool, cannot bring it.

 

“The GPA has reduced
logistics costs and inventories for distributors (more than 50% on average) and
has also brought visibility to warehouse outlets, which the sales force could
not appreciate”, adds Thierry Jouenne. “It is a very sophisticated
execution tool, a reactive process totally dedicated to orders, which does well
what it has to do, but does not offer sufficient visibility to the supplier who
drives the supplies of its customers “In other words, do not ask the GPA
to do something they cannot do – medium-term and long-term.

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“The GPA does not plan, it
runs and manages,” adds Christophe Bertin, Senior Consultant at Logility.
“Businesses need to anticipate long-term market needs and rectify in the
medium term, so that the majority of short-term issues go away.” The CPFR
allows replenishment plans to be planned in a shared way. The GPA to manage
these plans – it could be said in a way that the CPFR is PPP, shared procurement
planning. ”

The reactive capabilities of the
GPA in the short term will thus serve the CPFR by allowing the update of the
forecasts made in the medium term, as the setting of a promotion or a new
product for the deployment of stocks. In return, the CPFR should make the GPA also
more effective and efficient because it is simpler. “Unlike the CPFR, the
GPA requires administrative support of a physical flow,” says Christophe
Bertin. “We need delivery notes, bar codes, reception documents … But
the pace of the GPA is slowed by the exceptions, that is to say all that is
done and increases the information to deal with: the unexpected parcel, the
defective parcel, etc. A small part of these exceptions is inevitable, but the
majority comes from a bad anticipation because it is synonymous with shared
planning, the CPFR will make it possible to limit these anomalies. ”

The CPFR is also likely to upset
the relationship between suppliers and retailers, because it requires, in order
to work, to abandon a certain conception of collaboration. Today, major
manufacturers are joining forces to weigh more heavily against large-scale
retailers. Clusters seem inevitable, and some distributors will eventually have
to rid themselves of certain autocratic habits. “The CPFR is timely and
will not become an imposed figure,” says Christophe Bertin. From now on,
the ability to clearly anticipate market needs will become a decisive factor in
competition. Do the CPFR, not war. “And if we started to speak, to
exchange, to collaborate, that’s the idea of ??the CPFR”, summarizes Maël
Barraud. “But if it’s all about sending out sales or purchasing forecasts,
it’s not collaboration.” A point of view shared by Christophe Bertin who
also defends a possible gradual implementation of the process. “Before
comparing two forecasts and accepting the idea,” he suggests, “it’s
better to proceed in stages by sharing a single forecast, for example, a retailer
can provide a supplier with its 12-month forecast for it to learn how to work
with external data and to have a corrective attitude. After the confidence
established, the common work habits taken and the exceptions identified, we can
very easily go to the next step: the comparison of the respective forecasts to
develop a single, shared forecast “. This is, in a way, the scenario of
the first CPFR pilot tested in Europe, Except that here, Suppliers have
provided their own forecasts, at the level of the warehouse but just for a
small sample of products, while the retailer does not have the tools and skills
to make his own.

The industry is also concerned
that some companies may fear losing their competitive advantage. As there will
always be a certain number of companies or individuals who think they are
unbeatable; they will not adopt business practices that would give them the
impression of losing their competitive advantage. This is a phenomenon that can
be found in any industry. Many people in the old school are not very excited
about sharing information. For this reason, this part of the process must be a
strategic agreement, in which trading partners define the conditions under which
the information will be used, on both sides.

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