The Voluntary Inter-industry Commerce Solutions or VICS Association stated that a fresh new guideline assists material handling companies to build a model of their own business that links the consumers to factories. The association’s Collaborative Planning, Forecasting and Replenishment or CPFR guideline includes steps on how the trading partners can perform better business management processes and how to upgrade its retail supply chains by improving demand forecasts.
The guideline is entitled ‘The Ultimate Retail Supply Chain Machine: Connecting the Consumer to the Factory’. This guideline enables the retailers to administer the newest replenishment solution which is called the store level ‘distribution resource planning or DRP systems. This DRP system allows the companies to:
*Build a model of their material handling business that signifies their estimated sales, inventories, sales and shipments at every store as well as DCs in a 12-month period or even longer;
*Input details of certain events as well as planned changes in their supply and retail approach;
*Advertise precise forecasts of their orders in the future, schedule of contacted suppliers as well as their manufacturers;
*Succeed in doing closed loop supply chain plans with manufacturers who permits to create products as announced.