Customer Collaboration for the Supply Chain offers customers and suppliers the ability to connect and exchange data, particularly for customer replenishment business processes, for rapid replenishment. Similar to vendor-managed inventory, responsive replenishment replaces the traditional replenishment process, where customers generate orders, with one that manages those orders based on predefined parameters. Because the vendor manages replenishment, supply chains involving responsive replenishment respond to demand information sent by customers to vendors, rather than purchasing orders generated by customers. In short, responsive replenishment allows vendors to automatically fill customer sites, such as distribution centers, with inventory based on a prior service agreement specifying inventory levels.
Responsive replenishment gains better visibility into demand signals, handles promotions with retailers more efficiently, and eliminates the need for a fully automated replenishment process, improving the ability of both customers and suppliers to synchronize supply with demand.