From Apply Now,
Your Guide to Logistics / Supply Chain.
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This may sound simple and intuitive; however it is a very common practice that is not followed. All participants in the supply chain need to know what the forecast is for all items. For example, if a retail store chain decides to offer a promotion on Hershey’s chocolate bars in a certain week, this will tend to increase the demand for those bars as prices will be discounted. In order to assure customers of an adequate supply, the manufacturer needs to know when the promotion will take place and make adjustments to its manufacturing and production capacity to meet those needs. In addition, wholesalers must have adequate inventory on hand to meet the retailer’s needs. All too often, retailers do not share their strategic plans with supply chain partners, which results in stock-outs.