We have the solutions to your supply chain challenges
Find out how different EDI offerings work and what to look for in an EDI vendor
Keep your critical supply chain connections stable and secure throughout the process
Enable all of your suppliers, regardless of their technical capabilities
Ensure 100% compliance with the specific EDI requirements to avoid chargebacks
Leverage our network to quickly connect and trade electronically with your partners
Navigate complex B2B and B2G e-invoicing mandates worldwide
Gain better control over production, reduce lead times
Meet customer expectations with real-time inventory visibility
Automate order management and streamline fulfillment
From established sectors to emerging markets, we support businesses navigating change and growth
Purpose-built, scalable solutions tailored to your unique needs
Effortless connection to pre-connected trading partners worldwide
Whitepaper
Management Summary
To analyze the business benefits of VMI, we looked at key business indicators before and after VMI for locations that had been using VMI for 1-2 years. Our sample set contained 156 location relationships spread across 21 distributors and 10 suppliers. The average distributor had a little more than 5 locations and was doing about $150,000 per year with each supplier.
Summary Results for These Locations are as Follows:
24% average increase in sales 25% average increase in inventory turns 31% average reduction in stock outs 54% of the locations improved both inventory turns and customer service Typical Benefits of VMI
Why is it better for the supplier to place the orders rather than the distributors ordering themselves? The benefits of VMI result from better information flow. Both distributor and supplier are better able to monitor demand as a result of the distributor’s inventory activity. Lower inventories, better in-stock positions and increased sales are the three biggest benefits associated with VMI. Suppliers benefit from smoother demand and consistent orders. Distributors benefit from reduced administration costs, with the elimination of any need to place, manage or follow-up on orders.