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Collaborative Planning, Forecasting, and Replenishment (CPFR)
A business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand.
Implications
A business practice where trading partners work together to improve supply chain efficiency through joint planning, forecasting, and inventory replenishment.
Example
Example: A retailer and its suppliers use CPFR to synchronize forecasts and reduce inventory levels, leading to fewer stockouts and lower carrying costs.
Related Terms
Different from traditional supply chain management, CPFR emphasizes real-time collaboration between partners to optimize the entire supply chain.
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