CPFR – Collaborative Planning, Forecasting and Replenishment

CPFR is a method that aims to optimize the collaboration and information flow between different parties in a supply chain. This article is a short guide to the meaning of CPFR, the advantages of the method for businesses, and how PostNord can help you with a smooth logistics flow in accordance with the terms of CPFR.

What does CPFR mean?

CPFR is an abbreviation of Collaborative planning, forecasting and replenishment.

CPFR means that different companies in a supply chain work together in a shared method to plan and forecast synchronized replenishment of warehouses in all stages. The purpose of this approach is to create a time and cost effective supply chain, something which will benefit all parties as well as the end customer.

How does CPFR work?

CPFR is all about manufacturers, wholesalers, distributors and resellers using a shared and integrated work method which, in short, means a collaborative management of warehouse space.

Companies that work according to the CPFR method continuously share information about stock and synchronize the replenishment of stock. The purpose of the collaboration is to meet customer demands and expectations.

CPFR can be used if all parties involved agree that the method is advantageous and serves both shared and individual interests.

CPFR improves efficiency and ensures quality

The more steps there are in a production or delivery chain, the more vulnerable the flow becomes, which increases the importance of an integrated collaboration between all parties.

By working according to CPFR all companies involved in the supply chain can optimize their part of it, and get a safer, smoother and more efficient result. Continuous communication regarding warehouse management and customer demand makes it possible for both suppliers and sellers to do inventory and replenish warehouses faster, based on up-coming demands.

Also read: Demand management

Simplify the CPFR flow with PostNord as a reliable logistics partner

As the leading supplier of transportation and logistics services in the Nordics, PostNord can offer tailored solutions for every unique business. This includes complete logistics packages as well as distribution and warehouse management.
If your company works according to CPFR and you use us for warehouse management and other third party logistics, we are responsible for communication and collaboration to operate smoothly for all parties involved.

We ensure that your product flow is as efficient as possible, so that you can focus on getting your business to where you want it to be.

Do you want to learn more about how PostNord works with CPFR, or are you curious about what business services we offer?

Contact our customer support team or go to PostNord Portal Business to read more about how smart features like Integration solutions, Skicka Paket and Postbox can simplify your company’s mail and logistics management significantly.
More articles on logistics can be found on our collective page for logistics.

Frequently asked questions about CPFR

Is CPFR a delivery term?

CPFR is not a delivery term. It can instead be described as a method or approach to collaboration in a supply chain.

How do I work according to CPFR?

CPFR can be implemented as a method if all parties in a supply chain agree to it, and agree on how the collaboration should be managed in practice.

Why use CPFR?

Companies that collaborate regarding inventory, planning and replenishment of warehouses throughout the entire distribution chain can shorten lead times and lower their warehouse costs.