Building Competitiveness in Grocery Supply Through Continuous Replenishment Planning:: Insights from the Field
Review articleOpen access
Abstract:

AbstractThe process of Continuous Replenishment Planning (CRP), whereby manufacturers manage the inventories for their customers, provides participating manufacturers with the opportunity to serve their customers better by reducing their inventories and stockouts and thereby gain a competitive edge. This study examines the experiences of 10 Fortune 500 consumer products manufacturing companies in applying CRP. All 10 companies found that their customers—the distributors and retail chains—achieved major improvements by lowering inventories an average of 32% and reducing stockouts an average of 55%. However, although eight of the 10 manufacturers increased sales as a direct result of CRP, only two could claim better management of production, and only one achieved lower internal inventories. The manufacturers with more CRP experience had more efficient CRP processes and a greater portion of their total sales to CRP customers.

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