Which of the following collaboration mechanisms involves the establishment of long-term relationships with partners to improve the overall efficiency and effectiveness of the supply chain?

Which of the following collaboration mechanisms involves the establishment of long-term relationships with partners to improve the overall efficiency and effectiveness of the supply chain?
A . Total quality management (TQM)
B . Collaborative planning, forecasting, and replenishment (CPFR)
C . Supplier relationship management (SRM)
D . Distribution resource planning (DRP II)

View Answer

Answer: B

Explanation:

According to the ASCM CTSC Exam Content Manual, CPFR is a collaboration mechanism that involves the establishment of long-term relationships with partners to improve the overall efficiency and effectiveness of the supply chain. CPFR is defined as "a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand"1. CPFR enables partners to share information, align plans, and synchronize activities across the supply chain, resulting in reduced inventories, improved service levels, and increased sales23.

1: ASCM CTSC Exam Content Manual, page 8.

2: Six steps to successful supply chain collaboration | McKinsey

3: Supply Chain Collaboration: Meaning, Importance, Features & Impact | GEP Blog