Continuous replenishment
The term Continuous Replenishment (CRP) or Efficient Replenishment (German sometimes "Continuous supply of goods" or "Continuous stock replenishment "), also permanent replenishment, is a partnership-based and automated re- ordering system that determines replenishment based on actual sales. There are three ways of organizing the replenishment of goods and sharing responsibility:
- Vendor Managed Inventory (VMI) - the supplier has the main influence on the dealer's inventory
- Co-Managed Inventory (CMI) - influence on orders is shared
- Buyer Managed Inventory (BMI) - the dealer has the main influence on his own inventory
On one side of the influence scale is the Buyer Managed Inventory , where the focus of influence is on the trader. On the opposite side is the Vendor Managed Inventory , in which the supplier has a greater influence, as he can also create order proposals based on information from the dealer. With co-managed inventory , the influence is shared. The influence of the supplier is therefore in this order: VMI> CMI> BMI.
Demarcation
In contrast to the Quick Response procedure , which aims to match all companies involved in the supply chain , Continuous Replenishment only affects two consecutive companies.