A PRACTICAL LOOK AT CPFR: THE SEARS-MICHELIN EXPERIENCE

Hank Steermann

49 citations0/0 files storedSupply chain management review

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Supply Chain and Inventory Management Quality and Supply Management Logistics and Transportation Systems

Abstract

SUBTITLE: WHEN SEARS AND MICHELIN IMPLEMENTED THEIR COLLABORATIVE PLANNING, FORECASTING, AND REPLENISHMENT (CPFR) INITIATIVE IN 2001, IT WAS NOT OUT OF A DESIRE TO FOLLOW THE LATEST BUSINESS TREND. IT WAS TO SOLVE A VERY REAL PROBLEM IN THEIR PASSENGER-TIRE SUPPLY CHAIN. INVENTORY AT SEARS DISTRIBITION CENTERS AND MICHELIN WAREHOUSES WAS HIGH, AND YET SEARS WAS STILL EXPERIENCING SHORTFALLS ON SOME ITEMS AT ITS RETAIL STORES. THROUGH CPFR, THE TWO COMPANIES HAVE BEEN ABLE TO CUT THEIR COMBINED INVENTORY LEVELS BY 25 PERCENT WHILE STREAMLINING THEIR KEY BUSINESS PROCESSES.

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