Collaborative Planning, Forecasting, and
Replenishment (CPFR)
• CPFR is the sharing of forecasts and related business
information and collaborative planning between
retailers and vendors to improve supply chain
efficiency and product replenishment.
• Although retailers share sales and inventory data when
using a VMI approach, the vendor remains responsible
for managing the inventory.
• In contrast, CPFR is a more advanced form of retailervendor
collaboration that involves sharing proprietary
information such as business strategies, promotion
plans, new product developments and introductions,
production schedules, and lead-time information