In this article, learn about:
What CPFR is
How the CPFR process works
Walmart’s CPFR implementation
CPFR benefits for suppliers
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Collaborating with retailers like Walmart can often be a complex process, especially when trying to align on forecasts and inventory. CPFR is a process that tries to reduce that complexity by bringing suppliers and retailers to the same table to improve supply chain accuracy and efficiency.
What is CPFR?
CPFR stands for Collaborative Planning, Forecasting, and Replenishment. At its core, CPFR is about sharing data, building joint forecasts, and making collaborative decisions to reduce inventory issues and better meet customer demand.
Walmart was one of the earliest adopters of this strategy. According to Supermarket News, Walmart partnered with Warner-Lambert in the original CPFR pilot program in 1995, organized by the Voluntary Interindustry Commerce Standards (VICS) Association. The pilot produced strong results: a 30% reduction in inventory and a 3% increase in in-stock performance. Based on this success, Walmart began incorporating CPFR principles throughout its broader supply chain operations.
Instead of reacting to stockouts or overages, CPFR encourages proactive planning. It helps both suppliers and retailers align on promotional calendars, sales trends, and anticipated demand—long before inventory becomes an issue.
The CPFR Process
The traditional CPFR process follows a structured, nine-step model:
Create a front-end agreement – Both parties will define the scope of collaboration, roles, and shared goals.
Develop a joint business plan – Developing a strategic alignment on upcoming promotions, product launches, and seasonality.
Create a sales forecast – Both supplier and retailer should create forecasts based on historical sales and projected demand.
Identify forecast exceptions – Review for any discrepancies or anomalies between forecasts.
Resolve forecast exceptions – Collaborate to agree on a unified forecast.
Create an order forecast – Translate the sales forecast into actual replenishment needs.
Identify order exceptions – Flag constraints like inventory shortages or shipping delays.
Resolve order forecast exceptions – Adjust orders and timelines to resolve issues.
Order fulfillment – Finalize the plan and ship the goods according to the agreed-upon schedule.
The Benefits of CPFR for Suppliers
Adopting CPFR offers suppliers significant strategic and operational benefits, for example:
Improved Forecast Accuracy
CPFR helps reduce forecasting errors by integrating retailer insights with supplier production data. Accurate forecasts minimize costly overstocks and prevent stockouts, directly improving profitability.
Reduced Inventory Costs
By aligning forecasts, suppliers can optimize inventory levels, carry less safety stock, and free up capital previously tied up in excess inventory.
Enhanced Retailer Relationships
Regular, transparent communication builds trust. Suppliers who demonstrate proactive planning and forecasting capabilities earn retailer confidence and secure long-term partnerships.
Optimized Promotional Effectiveness
Joint business planning within CPFR ensures suppliers accurately anticipate demand spikes from promotions or seasonal events, allowing them to adjust production proactively rather than reactively.
Increased Sales and Shelf Presence
Suppliers that maintain consistently accurate replenishment and forecasting enjoy higher in-stock rates, better shelf positioning, and greater visibility in Walmart stores—ultimately driving higher sales.
CPFR in Walmart
While Walmart no longer formally refers to its processes as “CPFR,” it still practices the core principles of joint business planning, shared data visibility, and collaborative forecasting.
CPFR Processes at Walmart (Scintilla)
Scintilla, formerly known as Luminate, is a more recent tool developed by Walmart to:
Analyze multi-source data: sales trends, weather, store-level inventory, etc.
Offer SKU-level forecasts for both base and lift demand
Predict future demand patterns and generate alerts for shifts in consumption behavior
Access inventory levels and on-hand vs. on-order reports
Monitor replenishment activity and performance
Pull modular planning and event forecasting reports
Analyze historical data for trends in sales and inventory
View real-time POS (Point-of-Sale) data across stores
For suppliers, Scintilla can be a predictive tool. It supports collaborative forecasting by enabling conversations between replenishment managers and suppliers around:
Anticipated changes in demand
Planning for upcoming modular resets or marketing campaigns
Adjustments to production and transportation lead times
Related Reading: How to Create Custom Datasets in Scintilla
Scintilla Order Forecasts
The Order Forecast in Scintilla provides Walmart’s expectations for future product needs. It's built using forecasts generated from Scintilla and includes:
Demand by item and store
Suggested order quantities based on expected inventory turnover
Timing expectations for replenishment
Suppliers are encouraged to use the Supply Plan to align their production and logistics schedules with Walmart’s expected demand. Deviations from the supply plan often trigger performance scorecard impacts (like OTIF).
Related Reading: How to Pull Reports in Scintilla
How CPFR Impacts Replenishment
Walmart’s CPFR-style process also emphasizes tight control around Must Arrive by Date (MABD). Here's how that connects to forecasting:
Lead times are built into the system so that replenishment aligns with demand at the store level.
If suppliers underproduce or miss an MABD, it can trigger OTIF fines, out-of-stock shelves, or future forecast degradation.
Conversely, aligned forecasting and consistent delivery build Walmart’s confidence in the supplier and can lead to expanded shelf space or better modular placement.
Suppliers are expected to use the MABD tracker in conjunction with the Supply Plan to ensure that production, transit, and DC scheduling stay in sync with forecasted needs.
Related Reading: OTIF – How to Meet Delivery Appointments
Walmart’s CPFR Expectations
While the retailer may not use “CPFR” as branding, the expectations are relatively consistent across the industry:
Suppliers should review Retail Link and Scintilla data weekly or daily.
Forecast changes or inventory misalignments should be proactively flagged to Walmart’s Replenishment Manager.
Joint Business Planning (JBP) is still very present—especially for top-tier suppliers. This includes:
Pre-modular reset planning
Marketing event forecasting
End-of-year post-mortem reviews on inventory accuracy and sales lift
Walmart will often invite suppliers to strategic meetings to walk through Sales & Operations Planning (S&OP) style reviews that reflect CPFR’s intent: collaborative alignment.
Protect Your Business at Walmart
Deductions and compliance fines are commonplace when selling to any retailer. SupplyPike helps suppliers get paid and get better. Our software tests the validity of deductions, collects proof documentation, and takes disputing a claim down to a few (or zero) clicks.
Our software also helps suppliers avoid fines by digging into root cause analysis and providing executive-level oversight of the supply chain. Schedule a meeting with a team member to find out if SupplyPike is right for your retail business.
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