1. Overview

The Material Release (4D1) is a component of the full Collaborative Forecasting Program, extending forecasting process capabilities to improve the match between supply and demand.

2. eBusiness Process

Collaborative Forecasting is defined as a process by which trading partners work interactively to manage forecast requirements by sharing information affecting materials management decisions.  Material Release is where the forecast recipient (product provider) agrees to build and store product based upon the demand forecast and executes shipments only upon receipt of the material release.

The forecast owner (product consumer) agrees to ‘pull’ inventory for distribution to meet customer demand for use in manufacturing processes.

3.  Supply Chain(s)

This process is applicable to any supply chain that uses a forecast and replenish model to facilitate managing supply and demand within the supply chain.

The Material Release directly impacts the following roles:

- Forecast Recipient: The partner receiving the forecast, also identified as the Product Provider.

- Forecast Owner: The partner making a request for inventory of raw materials and/or finished goods from the Forecast Recipient, also identified as the Product Consumer.