Twin Rivers Technologies Blog


Allotment vs Allocation

Posted by Danielle Wentworth on Jul 6, 2020 9:00:00 AM

Due to production capabilities and market trends that result in a disconnect between supply and demand, there are times when Twin Rivers Technologies products' are in tight supply and must be put into what we call allotment.  Our allotment system allows the commercial team to control flow of product based on production capabilities to our forecasted customers and potentially any unforecasted business that customers may inquire on.. Our allotment is a strategy that we have implemented on the product supply side that can provide consumer confidence to our partners who depend on pounds showing up to stay in business. 

At Twin Rivers, we pride ourselves on living up to our commitments to our customers.  We know how important it is for them to be able to count on the amount of product they need to keep their operations running.  Without a proper system in place, it is feasible that a customer could come in and order well over forecast.  If capacity is tight, there is a potential in this scenario that another customer who places orders later in the month may not have the product available.  To avoid this, Twin Rivers puts any product in tight supply into our allotment process and our customer service team is a key part of working with our customers to confirm orders against forecast and commitments.


People do often get allotment confused by allocation.  Our program was not designed to limit the amount of product sold to customers, but to ensure that we have enough product to meet contractual demands, to understand what, if any, material is available beyond regularly forecasted business and to make educated supply decisions when requested over forecast come in or unforecasted requests arise.  In times of heavy demand and supply disruptions globally, TRT wants to ensure our regular customers can count on us to get their typical volumes without issue.  

We encourage our customers to have a supply contract with Twin Rivers as that is the first thing we review when putting the allotment process into place.  We have many different ways to work with our customers in this regards.  We have simple options as well as complex contracts.  We like to be flexible based on our customer’s needs.  Please reach out to your Twin Rivers Account Representative for more details if you are interested in discussing a supply agreement.


Topics: allocation, allotment, supply and demand