Abstract
The increasingly global operations and supply chains are significant. And the product lifecycles are decreasingly shorter. Therefore, to rapidly react to global market immediatelyand accurately, and to cope with the increase in variability in the supply chains, manyenterprises strive to share internal and external information devotedly. CPFR (Collaborativeplanning, forecasting and replenishment) is one new collaborative commerce model toenable collaborative relationships between buyers and sellers through co-managedprocesses and shared information. The early adopters of CPFR are retailers and theirsuppliers to increase the visibility to each other and let the suppliers to exactly replenishgoods at right time and accurate quantity. The benefits of developing CPFR for retailers arelower inventory levels, higher fill rates and sales. And the benefits for suppliers are lowerorder cycle time, better customer service and inventory reductions. CMC is the first one CPFR pilot manufacturer in Taiwan to develop collaboration betweenCMC and its trading partner, an overseas buyer with well-known brand. The primaryproducts of CMC are optical discs, optical recording media, and compact disc writable.Based on the production environment of CMC, this paper presents the KPI and its data flowfor the CPFR system. Before implementing CPFR, the customer demand trends areanticipated from sales interviews with customers, the inventory reports of overseas Hub andfactories. And then, develop the master plan according to market demand and historicalsales data of each customer. Finally, manufacture and ship the products according to theactual orders. As the demand information is not real time and without customers’ promise,the demand forecast and actual orders are different. Accordingly, unnecessary inventory,inventory carrying costs and warehousing costs are increasing. After implementing CPFR, CMC and buyer can collaborate planning, forecasting and replenishment in accordancewith the demand forecast. Besides, in the CPFR process, seller and buyer will resolveexceptions collaboratively. Therefore, the demand forecast is progressively withcommitment. This paper also analyzes the CPFR related information systems and then todesign the KPI (Key Performance Indicator) information flows. From the KPI informationflows, we will comprehend the influence of each KPI and then how to promote theseperformances.