Build Supply Chain Relationship Based On CPFR

The competitions in 21st century are competitions between supply chains. In the dynamic and changeful market environment, a supply chain should use the least cost to transfer the most value to the customers in the shortest time. The key issue to accomplish the object is whether the partners in the supply chain can build a good relationship. However, a supply chain consists of several different organizations, such as supplier, manufacturer, wholesaler and retailer, and the businesses should be done in different functions, cultures and employees, therefore, many difficulties exist in building good supply chain relationship.Recently, a methodology referred to as Collaborative Planning, Forecasting and Replenishment (CPFR) is being espoused as a means of integrating all members of the supply chain, including distribution and retail activities. CPFR is a Web-based attempt tocoordinate the carious activities including production and purchase planning, demand forecasting and inventory replenishment between supply chain trading partners. Its objective is to exchange selected internal information on shared Web server in order to provide for reliable, longer term future views of demand in the supply chain.In the background, the dissertation introduces how to build good supply chain relation based on the process and method of CPFR. The main topics in this dissertation are described below:Firstly, the dissertation describes the essence of the supply chain relationship and what qualities top-performing supply chains should possess, discusses the three main aspects to guarantee good supply chain relations, and analyzes their importance during the relationship life cycle.Secondly, the dissertation summarizes CPFR's process, benefit and obstacles to its implementation. These analyses proved that CPFR could promote good supply chain relationship. And the dissertation points out the possible problems when constructing the supply chain relationship, which prepares for the construction of the supply chain relationship.Thirdly, the dissertation brings forward the performance index system of the supply chain relationship from 3 aspects: informationsharing, decision synchronization, and incentive alignment, analyses the relations among them, then makes out the CPFR framework under the index system.Then, in the guide of the index system, the dissertation discuss how to build supply chain relationship based on the CPFR. To build good supply chain relationship, it should set up a virtual team, which is the basic guarantee to good supply chain relationship;it should innovate to the organization culture, which could help to adapt CPFR;it should reengineer every partner's inner business process to adapt the process of CPFR;and it also should set up a information system, which is the technical guarantee to a good supply chain relationship, to send information quickly and coordinate the decisions.What's more, a key problem in the building of CPFR is that there should be a reasonable and fair method to distribute the benefit, which could encourage the partners to consolidate the supply chain cooperation relationship. The dissertation makes up a reasonable income distribution pattern, on the base of the recourses and contribution ratio of the partners.