The Collaborative Planning, Forecasting and Replenishment (CPFR) system will enable the LCBO and agents/suppliers to increase the accuracy of demand forecasts and replenishment plans. The two main goals of the project are to:

• Improve the flow of products across the supply chain and ensure the right products are in the right location at the right time.
• Establish best practices process and format for collaborative forecasting, to be used in all product categories.

By working together, both the LCBO and our trade partners will benefit by having better, more current information to help improve the product flow. The system is intended to:

• Improve service levels.
• Reduce stockouts.
• Improve production, transportation, and operational efficiencies throughout the supply chain.
• Improve trading partner forecast accuracy.
• Increase sales.

The program involves several agents/suppliers from each of the product categories: Wines, BRTD, and Spirits as chosen by the Category Manager.

The CPFR process is divided into five steps:

1. Develop a front-end agreement.
2. Develop a joint business plan, including promotional plans.
3. Collaborate on a sales forecast.
4. Collaborate on an order forecast.
5. Generate orders and evaluate delivery performance.

The end result is a business agreement that works. The forecast is for a rolling 13 periods and the LCBO meets quarterly (at a minimum) with trade partners to evaluate actual sales against objectives.