SKF VSM Builds Customer Loyalty with VMI

• SKF VSM wanted a way to increase product sales and improve efficiencies for both them and their distributors
• SKF VSM looked to TrueCommerce Datalliance to provide a comprehensive VMI model that allowed them to reach their goals
• SKF VSM implemented VMI with Midwest Wheel, who quickly realized positive results in only eight months

SKF Vehicle Service Market (VSM) North America is a leading supplier of bearings and fluid sealing solutions for automotive and heavy-duty markets.

1. Limited Internal Resources: SKF VSM lacked the IT infrastructure and staffing capacity to implement a traditional software-based VMI system in-house.
2. Need for Daily Inventory Management: The company required a solution capable of handling daily inventory reviews and replenishment for a high volume of SKUs.
3. Distributor Support and Quick Onboarding: SKF VSM needed a VMI partner with the experience and scalability to onboard distributors quickly and gain their confidence.

The team chose the TrueCommerce VMI platform to enhance daily inventory review, streamline replenishment, and rapidly scale with distributor needs, delivered as a managed SaaS solution.

Midwest Wheel, one of SKF VSM’s first VMI partners, achieved remarkable results across its eight warehouses within just eight months: a 14% increase in sales, 13% reduction in inventory, 50% improvement in inventory turns, 99% in-stock performance, and 50% lower administrative costs tied to replenishment. VMI also streamlined their logistics by eliminating internal transfers through branch-level order generation. The strong outcomes led Midwest Wheel to expand its partnership with SKF VSM. With daily VMI insights, SKF VSM improved planning and completely eliminated purchase order data errors.