OVERVIEW

During the original CFAR proof-of-concept pilot between Wal-Mart and Warner-Lambert, the strategic vision was to extend the trading partner collaboration beyond the one-on-one relationship to all the links in the value chain. We called the extended enterprise collaboration CFAR'ther to refer to the extended supply chain visibility that would link the entire supply chain with a single, common forecast number with which to execute. The idea was that if we could share and collaborate on a single forecast number of demand with each function in the supply chain adding its own expertise to make the number more accurate, then we could have a highly efficient and effective extended supply chain. The concept was not only to make the demand drivers more accurate, but also to provide the needed information on supply constraints as well as optimization opportunities.

During the CFAR proof-of-pilot design process, a transportation company was interviewed to see what it would do if part of a CFAR'ther process pilot. We were told that if we could provide the company with an accurate forecast of shipping demand two weeks out, it could optimize its drivers. If we could provide an accurate forecast six weeks ahead of time, it could optimize its trailers.

Today, the term CFAR'ther is no longer used. Two VICS CPFR subcommittees have been formed to address the collaboration opportunities between multiple trading partners. The CPFR n-Tier committee is focused on collaborative standards and guidelines between the multiple-tier levels in a supply chain. The VICS mission...