What is VMI?

 

Vendor Managed Inventory or VMI is a program whereby a vendor manages the level of inventory at a reseller customer’s inventory locations. A successful VMI programme requires a  positive collaborative relationship between vendor and reseller. 

VMI

What does VMI deliver? 

 

VMI has proved itself in many markets as a concept that delivers ...

  • sales growth
  • inventory turn
  • admin savings

Where does VMI have application?

 

VMI is applicable in all verticals in the distribution sector and in manufacturing

How does VMI work? 

 

The vendor is responsible for analysing, managing and optimizing the inventory flow for each VMI customer at each customer location

Typical VMI data flows

 

Reseller customer to vendor

  • nightly inventory and sales data feed
  • confirmed purchase order

 

Vendor to reseller customer

  • recommended purchase order
  • order acknowledgement

 

The heart of the system is the VMI engine