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Integration with buyer and seller applications is also im­portant. A CPFR solution may be interfaced with trad­ing partners' demand- and supply-chain applications, as illustrated in Figure 5. Within a retailer, merchan­dise planning applications are responsible for assessing demand, devising promotion plans, and establishing consumer demand forecasts. Distribution applications consider these forecasts, as well as stock positions, and generate open orders. Store operations systems report POS activity and store stock positions.

On the manufacturer side, account teams use cus­tomer relationship management (CRM) solutions to propose promotions and deals, and develop sales fore­casts. Advanced planning and scheduling (APS) solu­tions develop constraint-based production and distribution plans based upon expected demand. Fi­nally, enterprise resource planning (ERP) applications produce the product, yielding shipments.

The collaborative trading community is the one place where all of these enterprise applications can coordinate their activities across the extended supply chain.


The promise of trading exchanges far exceeds their imme­diate capabilities. Yet, few doubt that the trading exchange model will soon be a cornerstone of business-to-business commerce. The critical success factor for a trad­ing exchange is to attract enough transactions to become a market player and get pricing power. Expanding the ex­change to include direct replenishment supports this goal. For replenishment-based products, trading partner collabo­ration processes such as VICS CPFR are the best-practice standard. Integrated with a trading exchange platform, CPFR technology can transform a competitor exchange into a more comprehensive collaborative trading community.

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