Collaborative planning is an approach to supply chain management that involves trading partners agreeing to share information and take decisions jointly in order to improve efficiency. By sharing forecasts of consumer demand and especially of the predicted effects of events such as new product launches, promotions and store openings, retailers and consumer goods suppliers can together plan future production, stock and distribution requirements. Procedures for dealing with the exceptions to the forecasts that inevitably arise are also mutually agreed in advance.

By taking this integrated approach it is possible to met customer demands more effectively while at the same time reducing stock levels. Merchandising and logistics costs can also be reduced.

How GS1 UK can help
To carry out collaborative planning, two vital elements are visibility of both goods and information and communication between trading partners. The GS1 standards enable data on product movement to be captured automatically at various points in the supply chain, using bar codes and radio frequency identification tags. GS1 standards also provide communication standards that allow fast and accurate exchange of information.

Most important, GS1 standards provide the consistent definitions, which is to say the common language, that is essential if information is to be shared effectively between trading partners.

Making it work
Consider the following points when planning your approach to asset management:

1. Build a solid platform using GS1 standards
2. Identify suitable trading partners
3. Define the scope of an initial project
4. Agree joint objectives and standard processes with your trading partners
5. Review and consider extending the project

To start uniquely identifying your products, services, locations or assets, join GS1 UK today.

Case Studies

Nestlé and Sainsbury’s
Sainsbury’s and Nestlé’s supply chain and commercial teams developed a collaborative planning system to identify the changes that would remove duplication and waste from their joint promotional process.

As a result, Sainsbury’s now uses the system with its major suppliers to plan key events, such as promotions and new product introductions. The system not only ensures that planning information is co-ordinated and communicated across the supply chain, but also provides full visibility of EPOS sales, depot stocks and in store availability.

Woolworths
IDC (www.idc.com) has identified benefits at Woolworths of £2m in year one, rising to nearly £5m in year three, from implementing collaborative approaches within its supply chain. Other adopters of the collaborative approach include, Unilever, Metro, Co-Operative Group, Procter and Gamble, AAH Pharmaceuticals, Motorola, Heineken, Kimberley Clark and Hitachi.