Continuous replenishment (crp)

[Zipporah Schumaker]

An ordering process based on the exchange of electronic data between a store and a distributor that indicates when a store is running low on a product and needs a new shipment of the item. CRP programs reduce inventory levels and operating costs by having products delivered on a frequent, as-needed basis. With CRP, consumer demands--based on scan data, warehouse movement, and sales forecasts-- drive warehouse replenishment orders and shipping. In the most common form--vendor managed continuous replenishment-- the distributors warehouse transmits data daily to the vendor on inventory levels and store orders; the vendor is responsible for creating the orders necessary to ensure that the warehouse can meet the retailers product needs.