What is a collaborative planning, forecasting, and replenishment system and how might it benefit those who choose to use it?

What will be an ideal response?

Answer: CPFR is a set of business processes, backed up by information technology, in which supply chain partners agree to mutual business objectives and measures, develop joint sales and operational plans, and collaborate to generate and update sales forecasts and replenishment plans. What distinguishes CPFR from traditional planning and forecasting approaches is the emphasis on collaboration. Experience shows that supply chains are better at meeting demand and managing resources when the partners synchronize their plans and actions. The increased communication among partners means that when demand, promotions, or policies change, managers can adjust jointly managed forecasts and plans immediately, minimizing or even eliminating costly after-the-fact corrections.