June 3, 2024
Early days of CPFR and a bops presentation in Bentonville Arkansas.
Hi there,
Welcome to the April edition of bops newsletter.
Let's dive in!
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Retailers and suppliers have one supply chain, and it is in their best interest to work together.
This is why in the 1990s, the supply chain industry was abuzz with the term "Efficient Consumer Response" or ECR.
The idea was simple: suppliers and retailers could reduce inventory, costs, and waste in consumer goods supply chains by sharing information.
Although there was much excitement about ECR, the potential was never fully realized.
However, the concept of supplier-retailer "collaboration" that ECR sparked was not lost.
This eventually led to the development of Collaborative Planning, Forecasting, and Replenishment or CPFR.
In 1996, Walmart Stores and Warner-Lambert co-forecasted the retailer's sales of Listerine using CPFR.
The result was a highly successful pilot that increased Listerine's in-stock position from 87% to 98%.
But, unfortunately, most legacy systems were not able to support meaningful collaboration between retailers and consumer packaged goods (CPG) companies.
Fast forward to today, and media coverage has brought supply chain challenges to the forefront, with the industry as a whole struggling.
To no one's surprise, both retailers and CPG suppliers have been heavily impacted.
Fortunately, modern technology is now eliminating the roadblocks which prevented effective and timely collaboration in the past.
So, although ECR may not have achieved its full potential, it sparked the idea of collaboration that led to CPFR - and technological advancements with the potential to change the supply chain industry for the better.
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We were invited to present bops to CPG companies and retailers in Bentonville. Check out our presentation below (from 0:00 - 4:48).
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Like what you read in this newsletter? Don’t forget to share it with your friends so they can stay up-to-date with the latest trends and resources from the world of consumer goods.
Enjoy your long weekend!
Till next time,
bops team