Collaborative planning: supporting automatic replenishment programs

Automatic replenishment systems that restock inventory based on actual demand triggers rather than relying on long‐range forecasts and layers of safety stock have been implemented in a great number of firms in recent years. Now these same firms are taking supply chain cooperation to another level through involvement in collaborative planning/forecasting/replenishment (CPFR). The results of a recent survey assessing current levels of involvement in cross‐organizational collaboration among firms utilizing automatic inventory replenishment are presented. The results provide strong support for positive associations between high levels of CPFR and implementation of operating process change and information system capabilities. Results supported only a very weak association between CPFR and effectiveness in achieving operational performance goals.