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For a successful relationship, a ‘close fit’ on these aspects is preferred, or some indication that the potential exists to develop relationship with joint objectives and goals.
Senior Management Buy In
Senior management must assume the role of CPFR sponsor for each of the trading partners to ensure that the necessary resources (Human Resources, Technical Infrastructure, Time and Project Budget) are prioritized and dedicated to the project.
Trust Based Relationship
CPFR involves sharing sensitive information. To take full advantage of the benefits of CPFR, trading partners need to create a relationships founded on trust. Sharing sensitive data and close collaboration demands reliability. CPFR should not be seen as a tool to develop a good relationship; rather, it can help to enhance a good, existing trading partner relationship.
Internal Reward Structure
The reward structure within each organization needs to be aligned with the objectives of the CPFR initiatives in order to ensure the desired behaviors of all involved …show more content…
In particular, best practice would be to collaborate at the lowest data level; sharing promotional plans, forecasts and replenishment orders per trading unit and per point of sales.
3. Were HI and Condis’ incentives “naturally” aligned for the success of the pilot? Examine the KPIs in Exhibit 2: If achievable, do they provide this alignment?
Yes. The pilot project was greatly successful. Based on the exhibit 2 in the case, every item was better than status prior to the implementation of pilot project. The key points were inventory level (from 14 days to 8 days level), forecast accuracy (from 60% to 80%) and service level (from 98% to 99.5%). The result is good enough to convince HI and Condis to install the CPFR system. But both HI and Condis should consider seriously about investments, organizational conflicts, training and regional characters when they decide to conduct the CPFR naturally
4. What has HI gained from the success of the pilot with Condis? What has Codis gained? What are the opportunities and obstacles to “scaling up” from the pilot for HI? For Condis Answer is in the last
Senior Management Buy In
Senior management must assume the role of CPFR sponsor for each of the trading partners to ensure that the necessary resources (Human Resources, Technical Infrastructure, Time and Project Budget) are prioritized and dedicated to the project.
Trust Based Relationship
CPFR involves sharing sensitive information. To take full advantage of the benefits of CPFR, trading partners need to create a relationships founded on trust. Sharing sensitive data and close collaboration demands reliability. CPFR should not be seen as a tool to develop a good relationship; rather, it can help to enhance a good, existing trading partner relationship.
Internal Reward Structure
The reward structure within each organization needs to be aligned with the objectives of the CPFR initiatives in order to ensure the desired behaviors of all involved …show more content…
In particular, best practice would be to collaborate at the lowest data level; sharing promotional plans, forecasts and replenishment orders per trading unit and per point of sales.
3. Were HI and Condis’ incentives “naturally” aligned for the success of the pilot? Examine the KPIs in Exhibit 2: If achievable, do they provide this alignment?
Yes. The pilot project was greatly successful. Based on the exhibit 2 in the case, every item was better than status prior to the implementation of pilot project. The key points were inventory level (from 14 days to 8 days level), forecast accuracy (from 60% to 80%) and service level (from 98% to 99.5%). The result is good enough to convince HI and Condis to install the CPFR system. But both HI and Condis should consider seriously about investments, organizational conflicts, training and regional characters when they decide to conduct the CPFR naturally
4. What has HI gained from the success of the pilot with Condis? What has Codis gained? What are the opportunities and obstacles to “scaling up” from the pilot for HI? For Condis Answer is in the last