GMA STUDY: 'CONSERVATIVE' CPFR ADOPTION

A survey of grocery manufacturers revealed that two-thirds had some CPFR activities in place, but just 12% said they intend to go into CPFR production.

R> Almost half of respondents currently have CPFR pilots under way, and 19% have completed pilots.

About 70% of the CPFR pilots are with mass merchants, 35% with supermarket chains and 12% with drug chains.

The No. 1 conclusion shared by companies with experience in CPFR is that it provides the company "an enhanced relationship with their trading partners," according to a report issued in March on the study, "CPFR Baseline Study Manufacturer Profile."

Among experienced CPFR users, two-thirds reported between 1% and 10% improvement in forecast accuracy, and 56% reported a decrease in inventory and an improvement of service levels between 1% and 10%.

CPFR isn't for all SKUs or for all trading partners.

The report attributed the "conservative" adoption of CPFR partly to the distraction of the Y2K "bug," and the fact that the B2B exchanges "are only now coming up with CPFR capabilities."

The study was co-sponsored by the GMA and Syncra Systems, Waltham, Mass., and conducted by KJR Consulting, Washington.