Question

the requirement that AB/InBev distributors engage in forecasting and then stick to those forecasts, whether they be over or under. This is different than the traditional forecasting model along the supply chain, where information is passed back but producers engage in their own forecasting and are responsible for the risk associated with maybe being wrong. What is it about the relationship with AB/InBev and its wholesaler distributors that makes this relationship possible? How does AB/InBev benefit? Is it fair?

Answer 1

Answer:

AB / In Bev: Anheuser-Busch In Bev is a world’s largest brewer. It is a Belgian transnational beverage and brewing company. This is global company which has its headquarter at Leuven Belgium.

The requirement that AB/InBev distributors engage in forecasting and then stick to those forecasts, whether they be over or under.

This is different than the traditional forecasting model along the supply chain, where information is passed back but producers engage in their own forecasting and are responsible for the risk associated with maybe being wrong.

The relationship with AB/InBev and its wholesaler distributors that makes this relationship possible:

• Strong belief and confidence between AB In Bev and its distributors which results in this strong relations among them.

• Market captured data and feedback are real and which is benefiting the forecasting process to provide more accurate number for the business.

• Forecast numbers do not have large variation: Due to the strength of the forecasting process and market feedback, the forecast number do not show large variations, which makes the relation stronger among AB In Bev and their distributors.

• AB In Bev and distributor benefited by this forecast model: This forecast model and demand number results benefits for both AB In Bev and their distributors.

• This approach resulting in revenue and profit to AB/In Bev and its distributors.

AB/InBev benefited by this forecasting method and approach as below

• This approach resulting in appropriate revenue and profit for the organization and their distributors.
• The organization and distributors are able to manage the sale and inventory as per this one set of forecasted demand number in their market.
• Overall the business runs in positive approach and does not resulting any negative impact to the business and their distributors.
• This does not resulting in any inventory increases at the organization and at distributor levels.

Yes, this is fair, because the forecasting method is used properly and the data and feedback used in the forecasting method are realistic and based on market feedbacks. This approach is useful and it will benefit the organization, distributor and all the chain which is engaged in this business. It does not involve any unfair act by organization or distributors.