Posts about supply-and-demand - Page 1

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.

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Topics: allocation, allotment, supply and demand