In a business where transparency is revered, Vendor Managed Inventory (VMI) is king. VMI systems streamline and provide transparency for VMI inventory management and just in time order fulfillment by setting clear objectives and allowing both the supplier and customer to access the information. With a VMI supply chain solution, your distribution center can reach new heights in efficiency.
Vendor-managed inventory (VMI) is a family of business models in which the buyer of a product provides certain information to a supplier (vendor) of that product and the supplier takes full responsibility for maintaining an agreed inventory of the material, usually at the buyer's consumption location (usually a store). A third-party logistics provider can also be involved to make sure that the buyer has the required level of inventory by adjusting the demand and supply gaps.
Some features of VMI include
• Shortening of the supply chain.
• Centralized forecasting.
• Frequent communication of inventory, stock-outs, and planned promotions.
• No manufacturer promotions.
• Trucks are filled in a prioritized order.
• Relationship with downstream distribution channels.
OVERVIEW