To Evaluate Partners in Collaborative Planning, Forecasting, and Replenishment (CPFR) Using Goodwill Trust

Abstract

Collaborative Planning, Forecasting, and Replenishment (CPFR) is not yet been widely adopted that was originally hoped for. To implement CPFR, the enterprises have to change the traditional transaction-based relationships with his suppliers into the collaborative relationships that they may exchange sensitive information and co-develop business plan. Goodwill trust, reliance upon the care, concern, honesty and benevolence shown by trading partners, plays an important role in CPFR. Thus, the enterprises have to identify an effective way to evaluate the goodwill trust about his traditional transaction-based suppliers. This study develops a method to evaluate goodwill trust for trading partners in CPFR. First, the indicators to measure goodwill trust were defined. Subsequently, the subjective ratings of indicators were collected from third parties who had collaborated with the suppliers using referral networks and reputation system. Finally, the testimonies were aggregated into goodwill reputations that were used to derive the score of goodwill trust. This method helps enterprise to evaluate goodwill trust about his traditional trading partners or suppliers using a quantitative method. Also, this method can be implemented by software agents that may automate the evaluation process of goodwill trust and accelerate the implementation of CPFR.