January 17, 2002, 12:00 AM

GNX and Manugistics roll out their CPFR offering

GlobalNetXchange and Manugistics are rolling out CPFR to GNX’s member retailers and their suppliers. GNX says five retailers and six suppliers have proven the efficacy of the joint program.

Kurt Peters

Executive Editor

Based on successful tests, GlobalNetXchange and Manugistics Group Inc. are rolling out a CPFR product to GNX’s member retailers and their suppliers. The two companies announced at the National Retail Federation Convention and Expo this week that five retailers and six key suppliers had completed a pilot of CPFR using the GNX b2b online exchange platform and Manugistics technology. Those five are now expanding their CPFR intitiative while GNX and Manugistics are making the system available to the balance of GNX members.

CPFR is the collaborative planning, forecasting and replenishment supply chain initiative undertaken by the Voluntary Interindustry Commerce Standards Association. It uses the web to foster better communication and planning between retailers and suppliers.

"In a pilot project of planning and collaboration with Michelin, Sears sees the opportunity to significantly improve its demand planning process - and working relationship - with a key supplier," said Dave Giometti, vice president, supply chain at Sears. "The CPFR solution will enhance our communication through greater visibility of sales and inventory forecast information, which is critical to decision-makers at Sears and Michelin. This will help to ensure that we have the right tires in the stores for our customers."

Giometti says Sears plans to increase its CPFR relationships this year.

"Manugistics designed its collaborative solutions to be trading-exchange-ready, with open industry standards, which we believe helped facilitate integration of the solutions with GNX to more quickly benefit GNX retailers and suppliers," said Jerry Blanford, Manugistics vice president of retail. "With the launch of this latest version of the GNX Collaborative Suite, more retailers and suppliers can now benefit from Manugistics` leadership in CPFR and vendor-managed inventory initiatives, and from our more than a decade of implementation success at many of the largest retail industry companies."

GNX says that the collaboration it has facilitated between retailers and suppliers so far has produced 2-12% increase in on-shelf availability 5-20% reduction in inventory for the products on which the two sides collaborated.


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