As the pressure of competition become ever more intense, it is important for companies to recognize the value, which increased cooperation and coordination between the members of their supply chain can create. This is especially interesting from the perspective of Small- and Medium sized Enterprises(SME), as they account for a very large part of the total number of enterprises, as well as a large part of private sector turnover, in the western world. Furthermore, existing theory on cooperation in supply chains seems in large part to neglect contextual factors such as company size, which makes the SME perspective even more relevant. By conducting a small study in an SME case company, I have found that large inventories, and at the same time regularly occurring out of stock situations, are real problems. Hence, the objective of this paper, is to investigate how SME can use the concept of Collaborative Planning, Forecasting and Replenishment as a driver for increased cooperation, and thereby a reduction of both inventory levels and out of stock situations. For the purpose of reaching the objective of the paper, I have first made an analysis of CPFR from three different theoretical points of view, that is, Transaction Cost Theory, Network Theory and Power Theory. Thereafter I have compared the theoretical analysis with real life cases, found in the literature. To the results of this, I have applied an SME perspective, thereby coming up with a solution model for SME implementation of CPFR. Lastly, I have conducted a small case study in an SME. My findings are that SME are able to achieve the objectives of both reduced inventories, and reduced number of out of stock situations, by means of CPFR. To achieve this though, SME should aim for CPFR collaborations, focusing more on scope, than on the depth.
|Educations||MSc in Supply Chain Management , (Graduate Programme) Final Thesis|
|Number of pages||98|