A CPFRR Implementation Methodology Study - XA Carpenter Mechanical Industry Case Study

CPFR has been implemented successfully in hundreds of enterprises in order to overcome forecasting and replenishment problems relating to the supply chain. Until now only two companies in Taiwan have the experience to implement CPFR according to the records of the VICS. This paper proposes a methodology of how to implement CPFR and takes a mechanical wood carving industry as a case study. In recent years, VICS (Voluntary Inter-industry Commerce Standards) has gradually found ways to make up for the defects of CPFR due to many cases of having implemented CPFR. From front-end agreement, CPFR based joint-business plans to order product generation, order fulfillment and exception management, have been often well implemented, have raised the efficiency and have greatly improved business defects. Although CPFR can overcome forecasting and replenishment problems, few people in Taiwan know the spirits of CPFR and how to implement CPFR effectively. Moreover, CPFR Roadmap, which is proposed by VICS, only describes the outputs of each step, but does not illustrate details in every step about how to implement CPFR. Therefore, a mechanical wood carving industry in Taiwan is illustrated to propose a CPFR implementation methodology in this paper. This paper also tries to find out core elements for proposing CPFR’s implementation and important procedure according to relative papers and released documents from VICS.