Remira Whitepaper VMI: Full responsibility at the supplier – the positive effects of VMI

The supplier has an important function in the Vendor Managed Inventory (VMI): He assumes the entire responsibility for the replenishment material planning and stock in the warehouse of the dealer. What are the advantages of this role swap in warehouse management? In his new white paper on supplier-driven inventory management, we highlight the positive impact on suppliers and dealers after the introduction of the VMI concept. We use a checklist to provide information on the key figures that need to be available for the successful implementation of VMI. The appropriate software solution for determining up-to-date inventory data and sales forecasts is of fundamental importance.

How can goods flows be optimised and out-of-stock situations avoided? Vendor Managed Inventory (VMI) is considered the means of choice to build an efficient supply chain. While the trader manages the stocks in the warehouse himself in the traditional ordering system, he hands over complete disposing responsibility to his supplier in the VMI concept. Crucial to the successful implementation of the VMI strategy is that the supplier can continuously recall the dealer’s current stock levels. Based on this data, he uses suitable material planningsoftware to create precise sales forecasts and determine optimal order and production quantities. In addition, the supplier determines the ideal delivery time and delivery rhythm.

A win-win situation for supplier and dealer

The successful introduction of VMI leads to an improvement in the economic environment – both for the retailer and for the supplier. We describe these positive effects in his new white paper and give an overview of the key metrics that need to be defined in advance of project implementation. As a specialist in intelligent IT solutions to optimize inventory management, we explain how companies can find the right IT solution for their needs and what they should look for when implementing them.

Interested parties can now download the white paper here:

Whitepaper VMI

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