VMI (vendor managed inventory) is the process where the supplier manages the customer's inventory so that the customer has the "right" item in the "right" place at the "right" time to ensure high service levels, efficient and productive operations, and the least amount of inventory tied up unnecessarily. The best VMI programs ensure that the end-to-end supply chain gains with both the supplier and the customer achieving improved results or benefits.
We live in a supply chain disrupted world, and there is no end in sight. It started with the pandemic as the global supply chain got out of alignment. The 'right' inventory wasn't in the 'right' place at the 'right' time to support basic needs let alone nice-to-have items. [...]
Manufacturers are experiencing continued inflationary pressures threatening customer service and profit margins with record-breaking price increases and lack of material availability. To add fuel to the fire, they are also starting to worry about preparing for a potential recession.
Improving OTIF and Reducing Cost and Inventory Every client wants to support growth goals while improving service levels (OTIF, on-time-in-full), operational efficiencies and inventory turns. These are timeless objectives for every planner. During the pandemic, the priorities shifted to service levels because clients struggled to keep up with dramatic [...]
Explore Vendor Managed Inventory Benefits for improved supply chain efficiency, customer satisfaction, and cash flow.
Human relationships and understanding play a vital role in the success of Vendor Managed Inventory (VMI) systems.
Vendor Managed Inventory (VMI) revolutionizes supply chain collaboration, optimizing inventory management and partner relations.
What are the strategic and tactical benefits of VMI for enhancing supply chain collaboration, increasing revenue, and improving service levels?
VMI success is deeply connected to the human factors, emphasizing the value of understanding, relationships, and clear communication.
Is software necessary for effective VMI implementation? Consider factors like scale, integration needs, and technical capabilities.
