TABLE OF CONTENTS ABC Stores, Inc.
XYZ Manufacturing Co., Inc.
ABC STORES and XYZ MFG agree to collaborate in key supply chain processes using standards developed by the Voluntary Interindustry Commerce Standards (VICS) Association called Collaborative Planning, Forecasting, and Replenishment (CPFR ). Our goal is to increase mutual efficiencies and delight the end consumer through dynamic information sharing, focus on common goals and measures, and commit to the CPFR processes. We recognize that there are many business process, technological, and organizational changes required by this collaboration, and we commit to apply resources to make these changes in order to make our collaboration effective and meet our mutual goals.
All communication will be governed by antitrust regulations. Both trading partners commit here to absolute confidentiality in the use of information shared.
Through CPFR , ABC STORES and XYZ MFG will seek to reduce out-of-stocks, increase sales, reduce business transaction costs, improve the use of capital (especially that involved in inventory), and facilitate trading partner relationships.
ABC STORES and XYZ MFG agree to focus on key results-oriented measures: retail in stock, inventory turns (at retail), and forecast accuracy (measured when the forecast can impact production, eight weeks prior). Goals for specific products are attached, but the overall goal is 96 percent retail in stock, six turns at retail, <15 percent sales forecast error (eight weeks out), and <20 percent order forecast error (eight...
