TABLE OF CONTENTS In order to implement Collaborative Planning, companies have to realize that they are part of a broader business network or ecosystem, which is per definition collaborative. Beyond an in-depth understanding of their core competences, members of such communities have to standardize their information and process infrastructures. Most companies need to overcome a number of barriers in order to successfully implement or participate in such Collaborative e-Markets: Variability [26], Scalability [27], Uncertainty [28] and Change Management [29]. Finally, collaboration requires some semantic synchronization (e.g. Master data, units of measure). Business partners have to agree on standards to be used for routine collaborative processes - who is doing what, when and where, plus who is responsible?
CPFR pilots have identified a number of recurring challenges that have to be resolved in order to make collaboration a success. These are a) Mutual trust, b) Sharing of savings and risks, c) Common performance metrics, d) Adoption of inter-enterprise business processes, and e) Striving to reach critical mass ASAP. Case companies that have already implemented the CPFR business model, have identified some critical cross-functional issues, that need to be understood and addressed by potential partners pursuing closer collaborative arrangements:
Building trust and collaboration among trading partners
Reducing channel conflict (by mapping and handling potential exceptions)
Enhancing channel services
Pricing based on market conditions and value versus standard pricing
Responding to customer needs and demands...
