Suppliers should rely on consumption-based forecasting
from ChainLink Research
In retail, the supplier often takes most of the demand risk. The retailer wants accurate forecasts to reduce inventory carrying costs and improve yields, but they don't have the same level of skin in the game that suppliers do, if demand doesn't materialize. The supplier usually is the one who has to pay for markdowns, spoilage, returns and junking. Suppliers can successfully fill every customer order and still "lose their shirt."
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