Procurement of agricultural products using the CPFR approach
Abstract
Purpose
This paper seeks to apply a framework of collaborative planning, forecasting and replenishment (CPFR) to develop a procurement model for agricultural products.
Design/methodology/approach
Considering the biological nature, seasonality and perishable characteristics of agricultural raw materials and products, the paper revises the CPFR reference model. Then, the paper constructs a n‐tier CPFR procurement model by extending a two‐echelon supply chain to a multi‐echelon supply chain and incorporating upstream suppliers in the supply chain. Moreover, the concept of collaborative transportation management (CTM) is integrated into the n‐tier CPFR procurement model. Finally, a case study is analysed and the efficacy of the proposed model is also validated.
Findings
The finding suggests that CPFR approach is applied in the procurement of agricultural products. The case results show that the service level is increased and inventory variance is reduced. The proposed model can thus improve the accuracy of forecasting and reduce inventory losses.
Originality/value
The paper offers a useful insight into procurement of agricultural products. The proposed model is a useful development for the agricultural industry in implementing CPFR in the future.
Keywords
Citation
Fang Du, X., Leung, S.C.H., Long Zhang, J. and Lai, K.K. (2009), "Procurement of agricultural products using the CPFR approach", Supply Chain Management, Vol. 14 No. 4, pp. 253-258. https://doi.org/10.1108/13598540910970081
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited