1. Business Challenges

Material Release (4D1) Replenishment Process resolves the following supply chain issues:

• Lack of visibility to true demand
• Excess/shortages of inventory based on forecasted demand
• Finished goods, the most expensive inventory, held based on forecasted demand
• High administrative costs based on management of hard PO’s to support fluctuations

2. Value Proposition

The value of this process includes:

• Maximum flexibility to respond to inventory demand
• Reduction of excess raw materials and finished goods inventory
• Reduction of purchase order administrative costs
• Validation of a critical component to support: replenishment, consignment, 3 ^rd party logistic models

3. Value by Supply Chain Role

For the Forecast Recipient (Product Provider) the value of this process includes:

• Maximum flexibility to respond to inventory demand
• Reduction of excess raw materials and finished goods inventory
• Reduction of purchase order administrative costs

For the Forecast Owner (Product Consumer) the value of this process includes:

• Maximum flexibility to respond to inventory demand
• Reduction of cost of excess inventory
• Reduction of 'churn' in purchase orders and associated administrative costs
• Ability to move additional inventory only when end-customer demand has actually consumed inventory