ISM analysis of CPFR implementation barriers

Collaborative Planning, Forecasting and Replenishment (CPFR) as an interconnection scheme between organizations has been shown to have significant benefits. Since its inception in the 1990s, its uptake has been lower than originally predicted. This paper identifies the major barriers and their interrelationships in CPFR implementations with a focus on high-tech industries. Interpretive Structural Modeling (ISM) is used with a group of CPFR experts from industry/academia and Matrice d’Impacts Croisés Multiplication Appliquée àun Classement (MICMAC) analysis to identify the driving and dependence powers. The paper identified 45 CPFR barriers and classifies them into four categories based on expert opinion, with only 13 of these determined to be significant. The results indicate that in terms of categories, managerial barriers are a significant root cause for both process and cultural barriers and CPFR implementation difficulties. It also indicates that although the importance of information technology to launch collaborative schemes has been addressed by many scholars, technology alone is not the complete solution for successful CPFR implementation. The paper has significant practical implications for organizations as it identifies the main CPFR barriers and their causal relationships. This will help firms in the process of CPFR strategy development particularly for mitigation strategies for dominant barriers. Keyword CPFR implementation, barriers, ISM, MICMAC Paper type Research paper