The nine working steps of a CPFR model, carried out by the supplier and then the buyer, are as follows:
Develop Front End Agreement
Create the Joint Business Plan
Create the Sales Forecast
Identify Exceptions for Sales Forecast
Resolve/Collaborate on Exception Items
Create Order Forecast
Identify Exceptions for Order Forecast
Resolve/Collaborate on Exception Items
Order Generation
One of the main features of CPFR is joint visibility and product replenishment through the supply chain. Information is shared between partners—suppliers and retailers—to plan end-customer demands and improve supply chain effectiveness. This results in a joint, transparent, and coordinated system based on customer needs.