Optimize Your Supply Chain with a Smarter VMI System

TrueCommerce Datalliance receives data from a distributor, retailer or end user called a Product Activity Report. The report contains information such as sales, product transfers, and inventory position (on hand, on order, in transit).

1. TrueCommerce Datalliance’s VMI platform reviews the data and sends a recommended replenishment order.
2. The supplier reviews the recommendations and any exceptions generated by the Datalliance system and makes changes as needed.
3. The supplier then creates a purchase order for themselves on behalf of their customer and sends a purchase order acknowledgment to the customer (distributor, retailer, end user).

The key benefits of a vendor managed inventory platform include:

• Optimized Replenishment – Clients can create more efficient orders that help protect sales and save on transportation costs all while minimizing their partner’s inventory holdings, leading to reduced storage and handling expenses.
• Enhanced Stock Availability – By actively managing inventories, vendors decrease the likelihood of stockouts, thereby improving service levels.
• Strengthened Supplier Relationships – VMI encourages a collaborative partnership between the client and their trading partners, fostering better communication and mutual advantages.

TrueCommerce Datalliance uses standard business procedures and protocols to exchange data with suppliers and distributors. In general, we receive product activity data in the form of either EDI 852/INVRPT, XML, or a flat file from our customers’ distributors and generate a purchase order for delivery to our customers in either EDI 850/875/ORDERS or flat file format. We also receive certain inventory configuration files and master data extracts from suppliers and, if requested, send distributors a PO acknowledgment file on behalf of our customers. All of these transactions may be transported via AS2, FTP, VAN, or FTPS (FTP over SSH)

VMI should be considered when companies are looking to increase collaboration with their trading partners on inventory replenishment. If stock-outs, seasonality, and poor inventory performance are causing a loss in sales, VMI can help.

Most of the largest retailers and manufacturers in the world use VMI with their trading partners to optimize stock levels, but businesses don’t have to be large to benefit from the solution. As smaller businesses realize the benefits VMI offers, many of these companies are now adopting VMI to increase sales and service levels.