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.

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