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.
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.
Since the pandemic, it has been a constant battle to ensure material availability, let alone to proactively manage cost and service. Even the most proactive and successful clients have experienced brief shortages of key materials and extended lead-times. The rest have been plagued with these issues.
Explore Vendor Managed Inventory Benefits for improved supply chain efficiency, customer satisfaction, and cash flow.
No matter the position of my client (typically a CEO, Owner, CFO, General Manager or Board member), he/she is interested in increasing demand, and the project we are brought in to focus on relates to increasing demand, either directly or indirectly.
Think carefully about your real objective. Are you truly interested in cost cuts? For my part, I have yet to hear of a company vision, mission, or strategy that’s related to cutting costs.
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.
