Collaborative Planning Forecasting and Replenishment (CPFR) Leads to Supply Chain Integration

Abstract

Purpose- Nowadays there is a need of a platform to fulfill the customer needs, wants and demands on time with right understanding and coordination we have to create a system for addressing aforementioned aspects. As one of the biggest sector of customer daily needs and demands are Fast Moving Consumer Goods products so we planned and focused to do research on FMCG sector of Pakistan. Methodology/Sample- In this research we evaluate that impact of CPFR performance on fast moving consumer sectors of Pakistan (FMCG). This research was of quantitative in nature and data was collected through close ended questionnaires. The sample size was set to 90 and data was collected from entire sample for analysis. Descriptive analysis, reliability test, correlation and multiple regression tests were run by using SPSS tools for study. FMCG sectors which we chose for this research are Unilever, Procter & gamble and Engro. The spaces which we covered in this research are real time customer demand, supplier integration, continuous production management and vendor management inventory to create supply chain integration in these organization, Findings- Positive and significant relationship are evident in our results between CPFR and drivers of Supply Chain Integration which includes RTCD, VMI, CPM and SI. If these integrated in a proper manner with the help of variables the complexities and flaws will be reduced as much as we cannot imagine the strong relationship helps to increase the efficiency of the organization and reduces the errors. Practical Implications- CPFR is an important strategy to interlink the supplier and manufacturer which will help them for continuous improvement. Industries like FMCG will definitely get the benefits in terms of efficiency and effectiveness, less human errors and right production at right way at a right time at a very large scale.