Full Speed Ahead

New study shows consumer products manufacturers adopting CPFR at a steady pace

Washington, DC  March 20, 2002  Consumer products manufacturers are moving ahead with their plans to implement Collaborative Planning, Forecasting and Replenishment (CPFR) initiatives according to a study published by the Grocery Manufacturers of America (GMA). The study, co-sponsored by the GMA and Syncra Systems and conducted by KJR Consulting, reveals that a majority of companies surveyed are moving ahead with CPFR initiatives, nearly half had pilots underway, and several were making CPFR a part of their normative business processes with key customers.

"The most notable conclusion of the survey was that CPFR enhanced the trading partner relationships between collaborating companies," said Jolene Magruder, manager, supply chain optimization at Nestle Purina PetCare Company and member of the GMA CPFR Task Force.  "This shouldn't be surprising as one of CPFR's goals is to have better visibility into partners' plan, thus resulting in better communication. The working relationships now become smoother and more focused on building their mutual businesses rather than constant crisis management."

The CPFR study surveyed one-third of GMA's membership of food, beverage and consumer product companies. The objective was to document the degree to which CPFR was being implemented by its membership as well as convey insights obtained through the use of this collaborative initiative. Copies of the study, titled "CPFR Baseline StudyÜManufacturer Profile" can be requested by calling GMA at 202-337-9400.

"It's interesting that GMA sponsored a CPFR study, since retailers were the force behind early pilots, but manufacturers are taking an increasingly active and proactive role," commented Julie Frasier, principal, Industry Directions. "The manufacturers most aggressively pursuing CPFR today appear to be gaining the largest benefits from their efforts."

"We sponsored this study to gain a better understanding of how companies are improving their trading practices and if they are fully using the standards and resources available to them," said Tim Paydos, Syncra's vice president of customer business development. "The study's results will help us continue to develop products and services that provide real benefits to our customers and business partners."