Continuous Replenishment Process

Continuous Replenishment Program (CRP) is a vital tool in the implementation of the Efficient Consumer Response (ECR) strategy. It is the practice of partnering between distribution channel members that changes the traditional replenishment process from distributor-generated purchase orders, based upon economic order quantities, to the replenishment of products based upon actual and forecasted demand.

CRP is based on the principal of "pulled" logistics, where the replenishment of a warehouse takes place on the basis of information about sales and other factors necessary for efficient replenishment in the supply chain. The system is based on the exchange of information about current stock levels of both the retailer and the supplier. By making this exchange on a daily basis the system makes it possible to better monitor the warehouse and the expected demand. This leads to more effective planning in regards to production on the supplier's side and the management of warehouse levels and ultimate supply to the retailer.

The goals of a CRP trading partnership are improved inventory turnover, reduction in warehouse inventory, reduced out of stocks at the warehouse level, improved service levels, and improved warehouse efficiency.

The primary joint benefit of CRP is the effective distribution and the smoother flow of products towards the retailer. This helps in the development of a strategic partnership between the supplier and the retailer trading partners.

The purpose of Continuous Replenishment is to achieve lower inventories, higher turns and shorter lead-time in the supply chain. One primary objective of CRP is to integrate the warehouse replenishment cycle and the store replenishment cycle to create a product flow that mirrors consumer demand. The ultimate goal is to have the vendor maintaining the inventory with minimal review on the part of Safeway Centralized Procurement.

Safeway provides a detailed CRP start up package that include a questionnaire and service level agreement for those suppliers that are interested in initiating a CRP program with us. Part of the startup includes exchanging item history, item identification codes, and sending test data. In order to support CRP the supplier needs to be capable of receiving and processing EDI transactions 852 and 824 and responding with 997 acknowledgments for both, as well as sending EDI transactions 855. Please see our mapping documents in the Implementation and Mapping guides section of this site.

If your company is interested in exploring the opportunities a CRP relationship will offer, please contact the electronic data department of Safeway via email at ecredi@safeway.com.

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