This is a possible model to deploy Collaborative Planning Forecasting and Replenishment for a multi-tier supply chain. It illustrates the effects of collaboration in the various layers of the supply chain.

1. COLLABORATIVE
PLANNING
FORECASTING &
REPLENISHMENT
Defining the end-to-end supply
chain architecture to support
discrete manufacturing
Chin Kok Poh
Manufacturing Industry Solutions
20 June 2003

2. Multi-Tier Supply Collaboration for High Tech Electronics
New: Indicates New Process Capability Enabled with CPFR Solution Set
Suppliers Contract Mfg Manufacturer’s Collaboration Hub Customer/
Review New Review New Sales Office
Forecast 7 Forecast 7 Hub and Material Mfg & Operation Promising 1 Forecast
Management (ERP) Credibility Change
New New
Supplier 8 Supplier 8 Forecast &Supplier Commit Job Order Release Allocated Capable
Response Response Workflow Exceptions Purchase Orders to Promise Supply
New New Supplier’s WIP & Inv. Receiving 2 3 Commit
Inventory & A Inventory & A VMI & Consignment (11i.9) Shipments New New
Wip Status Wip Status Purchase Order & Receipts Invoicing & Payments Exceptions to
ASNs & OTD Exceptions Requests
Invoicing & Payment Cycles
New New
Shipping & B Shipping & B
Invoicing Invoicing
Status Status New New
6 5 4
New New New New
9 10 11 12
Components Constraints & Optimisations Planning Exceptions
Mfg Material • Unconstraint Plan (MRP) • Components
• Constrain by Demand / Supply • Resources
Resource & Capacity • Optimisations • Supplies and Suppliers
WIP Status • Rules and Prioritisation • End-to-End Dem/Supply Pegs
Supply Chain Planning
Plan is finalised. PO and Jobs
1 Forecast Change from customer 6 New Forecast is published to CP 11
schedules are released in the ERP.
2 Suppliers is notified and acts on Customer is given probable recovery
Check for Available CTP 7 12
Forecast and VMI pull released schedule and the exceptions detail.
3 8 Get Supplier inventory status and
Respond if CTP is sufficient Suppliers provides new Commit A
WIP for better pull-in visibility.
4 Re-plan using new forecast 9 Supply Constrained Plan is re-run
(Constraint by Demand) B Shipping info and ASNs are visible
using new Commit
5 Release Urgent Jobs to 10 Review of New Plan and reach
Shop Floor consensus on course of action
20 June 2003 -2-

3. Single Tier CPFR Process Map for High-tech Electronics
(Collaborative Planning Forecast and Response) New: Indicates New Process Capability Enabled with CPFR Solution Set
Suppliers Manufacturer’s Collaboration Hub Customer /
Review New Sales Office
Forecast 7 Collaboration Planning with Mfg & Operation Global Order 1 Forecast
**iSupplier (ERP) Promising Change
New
Supplier 8 Forecast &Supplier Commit Job Order Release Allocated Capable
Response Workflow Exceptions Purchase Orders to Promise Supply
New Supplier’s WIP & Inv. Receiving 2 3 Commit
Inventory & A VMI Replenishment Shipments New New
Wip Status **Purchase Order & Receipts Invoicing & Payments Exceptions to
**ASNs & OTD Performance Requests
**Invoicing & Payment Cycles
New
Shipping & B
Invoicing
Status New New
6 5 4
New New New New
9 10 11 12
Components Constraints & Optimisations Planning Exceptions
Mfg Material • Unconstraint Plan (MRP) • Components
• Constrain by Demand / Supply • Resources
Resource & Capacity • Optimisations • Supplies and Suppliers
WIP Status • Rules and Prioritisation • End-to-End Dem/Supply Pegs
Advanced Supply Chain Planner
Plan is finalised. PO and Jobs
1 Forecast Change from customer 6 New Forecast is published to CP 11
schedules are released in the ERP.
2 Suppliers is notified and acts on Customer is given probable recovery
Check for Available CTP 7 12
Forecast and VMI pull released schedule and the exceptions detail.
3 8 Get Supplier inventory status and
Respond if CTP is sufficient Suppliers provides new Commit A
WIP for better pull-in visibility.
4 Re-plan using new forecast 9 Supply Constrained Plan is re-run Shipping info and ASNs are loaded
(Constraint by Demand) B
using new Commit into the ERP via iSupplier,
5 Release Urgent Jobs to 10 Review of New Plan and reach
Shop Floor consensus on course of action
20 June 2003 -3-

4. CPFR Options with Suppliers in Supply Chain Network
Collaboration with Suppliers for Agility Collaborative Planning with Customers for Demand Anticipation Legend
• GOP=Promising
Master Hub’s Master Hub’s Master Hub Master Hub’s • ASCP: APS
Tier2 Supplier Tier1 Supplier Customer • CP+iSP: Collaboration
• ERM: Operations
Option: Full CPFR Option: Full CPFR Customer
RosettaNet RosettaNet RosettaNet Driven RosettaNet
GOP ASCP ERM GOP ASCP ERM GOP ASCP ERM
CP + iSP CP + iSP CP + iSP
Master Hub’s Master Hub’s
Tier2 Supplier Tier1 Supplier C Con C Con C Con
o s R o s R o s R
M l lab tra ap M l lab tra ap M l lab tra ap
R or in i d R or in i d R or in i d
Option:MRP Only Option:MRP Only P a t
Pl ti v P la AT
P a t
Pl ti v P la AT
P a t
Pl ti v P la AT
an e n P a e n P a e n P
ni P ln ni n /CT n ni P ln ni n /CT n ni P ln ni n /CT
Configuration Options ng g g P ng g g P ng g g P Benefits and Care-abouts to Master Hub
CP+ ASC
ERM iSP P GOP Master Hub Tier 1 Tier 2
ERM ERM Master Hub Y Y Class C Material Suppliers Multi Source
Tier1 Supplier Y Contraint seen in the Master Hub only
Tier2 Supplier Y Y y Y Y No Help to Master Hub
Master Hub Y Y Y Y Multi-Sourcing thru to Tier 2 Suppliers
Master Hub’s Master Hub’s
Tier1 Supplier Y Y Costraints seen in master Hub only
Tier2 Supplier Tier1 Supplier Tier2 Supplier Y Y y y y Y y Y Master Hub and Tier 1 able to go the VMI way
Option: Master Hub Y Y Y Y Multi-Sourcing thru to Tuer 2 Suppliers
Option: Tier1 Supplier Y Y Y Constraints seen across the value chain
APS Constraint APS Constraint Tier2 Supplier Y Y Y y y y Y y y Y y Promise dates almost accurate - ATP across the value chain
Planning Planning Collaboration based on Constraints
Constraints of VMI seen across valuue chain
ASCP ERM ASCP ERM
Master Hub Y Y Y Y Multi-Sourcing thru to Tuer 2 Suppliers
Tier1 Supplier Y Y Y Y Constraints seen across the value chain
Tier2 Supplier Y Y Y y y y Y y y Y Y y Promise dates almost accurate - ATP across the value chain
Master Hub’s Master Hub’s Collaboration based on Constraints
Tier2 Supplier Tier1 Supplier Constraints of VMI seen across valuue chain
Constraints of Tier 2 does not add value to Master Hub
Option: Option: Master Hub Y Y Y Y Multi-Sourcing thru to Tuer 2 Suppliers
ATP and APS ATP and APS Tier1 Supplier Y Y Y Y Constraints seen across the value chain
Constraints Tier2 Supplier Y Y Y Y y y y Y y y Y Y y y y Promise dates almost accurate - ATP across the value chain
Constraints Collaboration based on Constraints
GOP ASCP ERM GOP ASCP ERM Constraints of VMI seen across valuue chain
Constraints of Tier 2 does not add value to Master Hub
ATP/CTP at Tier 2 does not add value to Master Hub
20 June 2003 -4-

5. Inventory Movement
MinMax without CPFR – Demand Decrease
M in M ax Planning w ithout CPFR - Dem and Decrease
400
350
Inventory Blow Up
Liability Increase
300
M ater i al M o vemen t
250 Consum e Qty (K#)
Delivery Schedule (K#)
Inventory (K#)
200
150
100
50
0
W +0 W +1 W +2 W +3 W +4 W +5 W +6 W +7 W +8 W +9 W +10 W +11 W +12 W +13 W +14 W +15 Chin Kok Poh /2003
W +0 W +1 W +2 W +3 W +4 W +5 W +6 W +7 W +8 W +9 W +10 W +11 W +12 W +13 W +14 W +15
W indow Firm Firm Firm Firm Firm Firm Firm Firm Firm Flex Flex Flex Flex Flex Flex Flex
W eekly (+/-) % -10% -15% -15% -15% -15% -20% -35% -15% -5% -5% 0% 0% 0% 0% 0%
Prev Consum e (K#) 100 110 110 120 130 140 150 160 160 160 160 170 170 170 170 170
Consum e Qty (K#) 100 99 94 102 111 119 120 104 136 152 152 170 170 170 170 170
CUM Consum e (K#) 100 199 293 395 505 624 744 848 984 1,136 1,288 1,458 1,628 1,798 1,968 2,138
W eekly (+/-) % 0% 0% 0% 0% 0% 0% 0% 0% -100% -30% 0% 0% 0% 0% 0%
Prev Delivery (K#) 100 110 110 120 130 140 150 160 160 160 160 170 170 170 170 170
Delivery Schedule (K#) 100 110 110 120 130 140 150 160 160 0 112 170 170 170 170 170
CUM Schedule 100 210 320 440 570 710 860 1,020 1,180 1,180 1,292 1,462 1,632 1,802 1,972 2,142
Inventory (K#) 200 211 228 246 265 286 316 372 396 244 204 204 204 204 204 204
20 June 2003 -5-

6. Inventory Movement
MinMax without CPFR – Demand Increase
Min Max Planning w ithout CPFR - Dem and Increase
400
350 Inventory Too Low
Line Down and
300 Delays
M aterial M o vemen t
250
200 Consum e Qty (K#)
Delivery Schedule (K#)
Inventory (K#)
150
100
50
0
W +0 W +1 W +2 W +3 W +4 W +5 W +6 W +7 W +8 W +9 W +10 W +11 W +12 W +13 W +14 W +15 Chin Kok Poh /2003
W +0 W +1 W +2 W +3 W +4 W +5 W +6 W +7 W +8 W +9 W +10 W +11 W +12 W +13 W +14 W +15
W indow Firm Firm Firm Firm Firm Firm Firm Firm Firm Flex Flex Flex Flex Flex Flex Flex
W eekly (+/-) % 10% 15% 15% 15% 15% 20% 35% 15% 5% 5% 0% 0% 0% 0% 0%
Prev Consum e (K#) 100 110 110 120 130 140 150 160 160 160 160 170 170 170 170 170
Consum e Qty (K#) 100 121 127 138 150 161 180 216 184 168 168 170 170 170 170 170
CUM Consum e (K#) 100 221 348 486 635 796 976 1,192 1,376 1,544 1,712 1,882 2,052 2,222 2,392 2,562
W eekly (+/-) % 0% 0% 0% 0% 0% 0% 0% 0% 118% 5% 0% 0% 0% 0% 0%
Prev Delivery (K#) 100 110 110 120 130 140 150 160 160 160 160 170 170 170 170 170
Delivery Schedule (K#) 100 110 110 120 130 140 150 160 160 348 168 170 170 170 170 170
CUM Schedule 100 210 320 440 570 710 860 1,020 1,180 1,528 1,696 1,866 2,036 2,206 2,376 2,546
Inventory (K#) 200 189 173 155 135 114 84 28 4 184 184 184 184 184 184 184
20 June 2003 -6-

7. Inventory Movement
MinMax with CPFR – Demand Decrease
M in M ax Planning w ith CPFR - Dem and Decrease
400
350 Inventory In Control
With CPFR
300
M ater i al M o vemen t
250
Consum e Qty (K#)
200
Delivery Schedule (K#)
Inventory (K#)
150 Inventory (No CPFR)
100
50
0
W +0 W +1 W +2 W +3 W +4 W +5 W +6 W +7 W +8 W +9 W +10 W +11 W +12 W +13 W +14 W +15 Chin Kok Poh /2003
W +0 W +1 W +2 W +3 W +4 W +5 W +6 W +7 W +8 W +9 W +10 W +11 W +12 W +13 W +14 W +15
W indow Firm Firm Flex Flex Flex Flex Flex Flex Flex Flex Flex Flex Flex Flex Flex Flex
W eekly (+/-) % -10% -15% -15% -15% -15% -20% -35% -15% -5% -5% 0% 0% 0% 0% 0%
Prev Consum e (K#) 100 110 110 120 130 140 150 160 160 160 160 170 170 170 170 170
Consum e Qty (K#) 100 99 94 102 111 119 120 104 136 152 152 170 170 170 170 170
CUM Consum e (K#) 100 199 293 395 505 624 744 848 984 1,136 1,288 1,458 1,628 1,798 1,968 2,138
W eekly (+/-) % 0% -10% -10% -15% -15% -15% -20% -20% -15% -10% -5% 0% 0% 0% 0%
Prev Delivery (K#) 100 110 110 120 130 140 150 160 160 160 160 170 170 170 170 170
Delivery Schedule (K#) 100 110 99 108 111 119 128 128 128 136 144 162 170 170 170 170
CUM Schedule 100 210 309 417 528 647 774 902 1,030 1,166 1,310 1,472 1,642 1,812 1,982 2,152
Inventory (K#) 200 211 217 223 223 223 230 254 246 230 222 214 214 214 214 214
20 June 2003 -7-

8. Inventory Movement
MinMax with CPFR – Demand Increase
Min Max Planning w ith CPFR - Dem and Increase
400
350 Inventory In Control
With CPFR
300
M aterial M o vemen t
250
Consum e Qty (K#)
200 Delivery Schedule (K#)
Inventory (K#)
Inventory (No CPFR)
150
100
50
0
W +0 W +1 W +2 W +3 W +4 W +5 W +6 W +7 W +8 W +9 W +10 W +11 W +12 W +13 W +14 W +15 Chin Kok Poh /2003
W +0 W +1 W +2 W +3 W +4 W +5 W +6 W +7 W +8 W +9 W +10 W +11 W +12 W +13 W +14 W +15
W indow Firm Firm Flex Flex Flex Flex Flex Flex Flex Flex Flex Flex Flex Flex Flex Flex
W eekly (+/-) % 10% 15% 15% 15% 15% 20% 35% 15% 5% 5% 0% 0% 0% 0% 0%
Prev Consum e (K#) 100 110 110 120 130 140 150 160 160 160 160 170 170 170 170 170
Consum e Qty (K#) 100 121 127 138 150 161 180 216 184 168 168 170 170 170 170 170
CUM Consum e (K#) 100 221 348 486 635 796 976 1,192 1,376 1,544 1,712 1,882 2,052 2,222 2,392 2,562
W eekly (+/-) % 0% 10% 10% 15% 15% 15% 20% 20% 15% 10% 5% 0% 0% 0% 0%
Prev Delivery (K#) 100 110 110 120 130 140 150 160 160 160 160 170 170 170 170 170
Delivery Schedule (K#) 100 110 121 132 150 161 173 192 192 184 176 179 170 170 170 170
CUM Schedule 100 210 331 463 613 774 946 1,138 1,330 1,514 1,690 1,869 2,039 2,209 2,379 2,549
Inventory (K#) 200 189 184 178 178 178 170 146 154 170 178 187 187 187 187 187
20 June 2003 -8-