Comparing the factors that influence the adoption of CPFR by retailers and suppliers

The purpose of this paper is to compare the factors that influenced the adoption of a Collaborative Planning, Forecasting, and Replenishment (CPFR) model by a retailer that is a lifestyle accessories chain, and a supplier that is a food manufacturer.

The study started with the construction of a questionnaire based on the factors of the theoretical framework of a Technology-Organization-Environment that were discovered through a literature review and distribution of the questionnaire to experts. The fuzzy analytical hierarchy process method was used to determine the weights (importance) of these factors.

The study found that among the top ten factors, two are the same for both the retailer and the supplier – “partner trust and communication,” and “support of top managers” – while the other factors differ. In addition, it was found that the supplier pays more attention to the environmental issues, while the retailer focuses on organizational issues when introducing a CPFR model.

This study offers five practical implications for the successful adoption of a CPFR model: first, top management support and trusting relationship building are important factors for both the retailer and the supplier; second, adoption of CPFR is a management issue, rather than a technological issue; third, retailers lead more successfully; fourth, a careful selection of collaborative partners is essential; and finally, an innovative model should be constructed.

The results can serve as a reference to help enterprises to better allocate their resources, according to the weights of the important adoption factors when they are formulating their strategies for the adoption of CPFR. Decisions based upon this guideline can increase the success rate of CPFR adoptions and can ensure better allocation of resources.