
236 Principles of Supply Chain Management
that are selling. This practice reduces lost sales because of stockouts and also reduces the
end-of-season merchandise that must be discounted or transferred. To provide this quick
response capability, manufacturers must receive more current sales information from the
retailers. This is another example of the value of supply chain collaboration.
From Transactions to Processes
You have no doubt heard a lot about the need to change—to improve, to innovate, to
collaborate, and to do a lot of things that sound good but also sound like a lot of work.
Are these changes necessary or are companies all right the ...