Supply Chain Management

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SUPPLY CHAIN MANAGEMENT

INVESTIGATION OF OPPORTUNITIES THAT EXIST WITHIN THE AUTOMOTIVE SUPPLY CHAIN FOR COLLABORATIVE PLANNING FORECASTING AND REPLENISHMENT (VICS CPFR®)

Authors:

Christine Pfeifer Julian Hensolt Kathrin Wolfinger Nancy Kornas Steffen Erath

Supervisor:

David Aldridge Norman Lees

Working period:

October 2007 – January 2008

Abstract

University of Bolton

1 ABSTRACT
Due to collaborative planning, forecasting and replenishment (VICS CPFR®) amongst retailers or manufacturers and their suppliers, decreased inventory and better visibility can be achieved within the supply chain. The process was originally developed for the retail sector and will be discussed in a very detailed way for the automotive industry. Therefore, a brief description including the origin, definition, benefits and current application of VICS CPFR®, is provided. Subsequently, a precise analysis of approaches in the automotive industry and a gap analysis between the retail and the automotive sector are presented. Examples in various areas emphasise each gap. Ways of solving these gaps are identified and a final suggestion of a VICS CPFR® model for the automotive industry is created. This model is based on the retail sector with detailed modification for the automotive industry in order to achieve great benefits in the supply chain.

2 CONTENTS
1 2 3 4 Abstract .......................................................................................................................... II Contents ......................................................................................................................... II Introduction..................................................................................................................... 1 Origin of VICS CPFR® ................................................................................................... 1 4.1 4.2 4.3 5 6 ECR ........................................................................................................................ 2 Genesis of VICS CPFR® ....................................................................................... 3 Distinction between ECR and CPFR ................................................................... 3

Definition and explanation of VICS CPFR® ................................................................. 4 VICS CPFR® Process Model .......................................................................................... 7 6.1 6.1.1 6.1.2 6.1.3 6.1.4 6.2 Annotation on the Collaboration Activities and Tasks ....................................... 8 Strategy and Planning ...................................................................................... 8 Demand and Supply Management .................................................................. 9 Execution ........................................................................................................... 9 Analysis ........................................................................................................... 10 Collaboration in the VICS CPFR® Process Model ............................................ 11

page II

Contents

University of Bolton

6.3 7 7.1 7.2 8 8.1 8.2 8.3 8.4 9 10

N-tier Collaboration ............................................................................................ 12 VICS CPFR® Benefits ........................................................................................ 12 VICS CPFR® Challenges .................................................................................... 14 Involved Departments......................................................................................... 15 Involved Sectors .................................................................................................. 15 Successful Companies ......................................................................................... 16 Technology...
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