Today I want to show how different EDI documents are used for transferring forecast information between organizations.
Demand Forecast documents are widely used between manufacturers and their suppliers. For example, a company which produces DVDs with movies needs to be supplied with a certain amount of blank DVD discs. Demand for these blanks varies depending on different parameters, such as new movies releases, holidays (like Christmas) and so on. So, to be sure their trading partner(s) which produces blank DVDs is aware of this demand, they are sending demand forecast documents on a regular basis.
Usually manufacturer knows exactly how many blanks they need today, tomorrow, this and next week, but might be not that sure about next month or next quarter. But they could forecast these amounts.
Another example is “Delivery Just In Time” process (also known JIT manufacturing/production), used (for example) in automotive industry. To reduce inventory costs, manufacturer requests its supplier to deliver a certain amount of parts/raw materials needed this particular day. So, they only have enough inventory for one day production (for example). I hope it is clear that this requires a very accurate demand forecast process.