VICS ANNOUNCES NEW CPFR MODEL 2004-06-07 (2)

MICHAEL GARRY

LAWRENCEVILLE, N.J. -- In an effort to bring clarity and drive adoption of CPFR, the VICS standards organization here has released a new business process model to replace a more complex nine-step model.

The nine-step model prompted many comments that CPFR (Collaborative Planning, Forecasting and Replenishment), a standard way by which trading partners can collaborate on replenishment and merchandising, was "rigid, complex, expensive and time-consuming," said Joe Andraski, managing director for VICS (Voluntary Interindustry Commerce Standards Association). So earlier this year, the group came up with a model that is "easier to explain in the boardroom," he noted.

Based on hundreds of implementations worldwide, the new model has four elements, any of which can serve as a platform for collaboration, said Andraski: Retail Event Collaboration, DC Replenishment Collaboration, Store Replenishment Collaboration, and Collaborative Assortment Planning. The new model increases "the emphasis on execution and analysis." More details can be found on the Web sites www.vics.org and www.cpfr.org.

VICS, which develops standards for in-store, warehouse and e-commerce activities, has historically drawn more retail participation from outside the food industry, though its sponsoring members include H-E-B, Meijer, Wal-Mart Stores and Target, and many consumer packaged goods manufacturers. "There's growing interest by food retailers in what is happening," said Andraski.

Andraski acknowledged that more CPFR programs have been launched by general merchandise retailers than by food retailers. "Grocers are fighting for survival, so it's tough to focus on new business practices," he said. "Yet competitors like Wal-Mart and Target are making hay with collaborative business practices."

A number of unfounded myths have retarded the growth of CPFR, such as that it requires a large people and technology investment, noted Andraski. "CPFR is not ERP," he said.

VICS has also announced a new Retail Out-of-Stock Committee -- including retailers, suppliers and solution providers -- to address the "root sources of retail out-of-stocks," according to a VICS statement. "I'm not aware of any other attempt at a multi-function, cross-industry look at out-of-stocks," said Andraski.