Alexandria, VA-based The WorldWide Retail Exchange, a public exchange for retailers, manufacturers and suppliers, today released the results of its global launch of a Collaborative Planning, Forecasting and Replenishment initiative.
The project involved 480 SKUs in general merchandise, food, drug, electronics and apparel, 12 trading partnerships and 45 distribution centers over three continents. The WWRE Collaborative Planner enables members and their trading partners to work in real-time and jointly manage sales, order and promotional forecasts and processes.
The WWRE reported that participants reduced excess inventory by 32% by more closely matching replenishment plans to consumer demand and reducing safety stock; reduced lead time by 25% by jointly establishing business goals, then developing a more efficient process and better aligning supply chains; improved in-stock levels by 10% by sharing plans, improving demand visibility and creating more reliable forecasts; and improved forecast accuracy by 25% by collaborating on sales, order and promotional forecasts. The percentages reported represent the mid-point of the range of improvement by participants, the WWRE reports.
"Implementing WWRE Collaborative Planner has been a huge learning experience, resulting in improved trading partner relationships and streamlined processes," said Jeffrey A. Rein, executive vice president of marketing for Walgreen Co. "We were able to improve communication and visibility with our trading partners. And by sharing our forecasting data and joint business processes, we have realized savings that can be distributed across the supply chain."