Key Takeaways

  • Collaborative VMI builds trust and strengthens supplier–distributor relationships
  • Improved visibility enables better alignment between inventory and demand
  • Flexible, customizable solutions drive higher adoption and success
  • Automation enhances efficiency across ordering, promotions, and product transitions
  • Data-driven inventory management improves both service levels and profitability

About the Customer

Viking Electric Supply is a wholesale electrical distributor serving the Upper Midwest, with 24 locations across Wisconsin and Minnesota. As part of Sonepar USA, Viking is a key channel partner for Siemens, a global leader in electrical products and solutions.

The Challenge

Viking Electric initially approached Vendor Managed Inventory (VMI) with skepticism due to a poor prior experience with another provider. Challenges included:

  • Lack of flexibility and usability in previous VMI solutions
  • Difficulty aligning inventory with actual customer demand
  • Excess inventory investment and inefficient stocking strategies
  • Limited visibility into demand trends and inventory performance
  • Complexity in managing promotions, new product introductions, and product transitions

Siemens needed to rebuild trust while demonstrating how a collaborative, data-driven VMI approach could deliver measurable value.

The Solution

Siemens partnered with Viking Electric to implement its Inventory Collaboration Program, powered by the TrueCommerce Datalliance VMI platform.

The solution included:

  • A structured, collaborative implementation process involving Siemens, Viking, and TrueCommerce
  • Data cleansing and alignment to ensure accuracy and consistency
  • Flexible system configuration tailored to Viking’s business needs
  • Real-time visibility into demand and inventory across locations
  • Automated replenishment recommendations based on demand trends
  • Support for promotions, product transitions, and lifecycle management

This collaborative approach ensured the VMI system adapted to Viking’s processes rather than forcing operational compromises.

Detailed Results & Business Impact

The implementation of VMI delivered significant improvements in inventory performance, operational efficiency, and sales growth for Viking Electric.

With improved visibility into demand trends, Viking was able to optimize its inventory strategy, reducing excess stock while ensuring the right products were available when needed. This resulted in a measurable reduction in inventory value while simultaneously increasing sales.

The solution also improved customer service by increasing fill rates, enabling Viking to better meet customer demand without overstocking. Enhanced forecasting and replenishment capabilities allowed for smoother product transitions and more effective management of promotions, ensuring no missed sales opportunities.

Additionally, the collaborative framework strengthened the partnership between Siemens and Viking, enabling more proactive decision-making and better alignment with market conditions. The ability to fine-tune inventory planning and automate ordering processes also improved productivity and financial performance, including stronger margins and return on inventory investment.