Comments on: Benefits of Forecast Sharing With Your Suppliers https://demand-planning.com/2013/05/24/benefits-of-forecast-sharing-with-your-suppliers/ S&OP/ IBP, Demand Planning, Supply Chain Planning, Business Forecasting Blog Mon, 03 Jun 2013 17:20:14 +0000 hourly 1 https://wordpress.org/?v=6.6.4 By: admin https://demand-planning.com/2013/05/24/benefits-of-forecast-sharing-with-your-suppliers/#comment-235 Mon, 03 Jun 2013 17:20:14 +0000 https://demand-planning.com/?p=1844#comment-235 If I understand your comment correctly, my response is that capacity management is a key benefit. Capacity is a major concern with our supply base and it is critical to provide information to our key suppliers to make them aware of schedules and long term forecasts for ensurement of continued product delivery and support to all of our manufacturing lines around the world. We hold quarterly or bi-annual webcasts to our supply base to provide updates to them regarding economic outlooks, production schedules and long term forecasts.

Shellie Atkins

]]> By: Jack Harwell https://demand-planning.com/2013/05/24/benefits-of-forecast-sharing-with-your-suppliers/#comment-234 Mon, 03 Jun 2013 02:36:58 +0000 https://demand-planning.com/?p=1844#comment-234 Howard,

You are correct, forecast must be reasonably accurate to be beneficial. As stated in the article, supplier support is typically proportional to the quality of the forecasts.

These forecasts are especially important in a pull replenishment system. Many pull systems work in timeframes that are much shorter than the actual lead time of the parts/product that is being pulled. This is usually addressed with buffer inventory, which is calculated and monitored using the customer’s forecast.

The forecast is also helpful in planning capacity and longer lead time raw materials, so the buffer inventory is supported and pulls are fulfilled.

]]> By: admin https://demand-planning.com/2013/05/24/benefits-of-forecast-sharing-with-your-suppliers/#comment-233 Thu, 30 May 2013 17:10:06 +0000 https://demand-planning.com/?p=1844#comment-233 I have always found it critical to share forecasts with suppliers for a number of reasons. Just a few:
1) Allow supplier to have sufficient inventory of your commodity to provide your needs JIT
2) Share seasonality and/or environmental fluctuations
3) Optimize supply chain / transportation costs
4) Show true ‘partnership’ in allocating resources and costs
5) Supplier will often build ahead for future needs predicated on the forecast at no (or shared) cost to you
6) Leverage the information when expedited freight may be required due to a supplier shortfall. (‘we told you we’d need these’)
7) foundation for frequent, quality communication (business reviews)
8) Critical to the entire JIT process upstream and downstream

Kurt Fischer

]]> By: admin https://demand-planning.com/2013/05/24/benefits-of-forecast-sharing-with-your-suppliers/#comment-232 Wed, 29 May 2013 16:06:50 +0000 https://demand-planning.com/?p=1844#comment-232 Jack – it’s a very relevant point. Given that many manufacturers are highly dependent on their suppliers for the achievement of customer delivery dates it’s essential that suppliers know as much as you do. It’s surprising how few people take advantage of the capabilities in ERP systems to generate forecasts for suppliers.

Aled Williams

]]> By: admin https://demand-planning.com/2013/05/24/benefits-of-forecast-sharing-with-your-suppliers/#comment-231 Wed, 29 May 2013 16:05:51 +0000 https://demand-planning.com/?p=1844#comment-231 There is alot of “assumptions” in this article that forecasts can be accurate enough to provide beneficial sharing opportunities with suppliers. How does the process of “Pull Replenishment” fit into the thesis that was outlined?

Howard W. Coleman

]]>