A little background information about these 2 companies. Kimberly Clark Corporation is an American company which produce frequently paper based consumer products. The company is also a leading manufacturer of family and personal care products, some brands the company produced including Kleenex facial tissue, Scott toilet paper and Huggies disposable diapers. The company had earned a whopping US$21.152 billion worth of revenue as of 2013. Rite Aid is a pharmacy chain in the United States. The company is the largest pharmacy chain in the East Coast and also the third in the US. Their annual revenue was approximately US$25.526 billion as of 2014. As Rite Aid’s key trading partner is Kimberly Clerk, both the companies agreed to collaborate to increase their sales, therefore CPFR is implemented. The collaboration’s focuses are on the planning of the business, sales forecasting and the replenishment time …show more content…
For being possible to achieve this standard, Rite Aid had collaborated with approximately 50 others supplier partners which helped the company to improve service levels of distribution center to retailer and also up to 17 percent decrease in days of supply. The reason for the success was that Rite Aid’s CPFR deployment model allows its trading partners to partake in its collaboration very quickly and without requiring to invest in those hefty technology investments. Both Kimberly Clark and Rite Aid focuses on the key steps of the CPFR model which involves the companies to take part in monthly meetings to ensure that the plans are being followed closely within the schedule. Thus benefiting them with the ability to produce a single, shared demand forecast. With that, it leads to improving joint business planning, sales forecasting, order planning and fulfilment, better performance management and reduces inbound and outbound