Optimize Supply-Chain Relationships with Distribution Partners Like Never Before
The rise of omnichannel retail, has elevated buyers’ expectations of when and how they receive their purchases. This shift has caused supply chains without visibility into how their inventory is being managed to fall behind. To deliver a competitive purchasing experience, supply chain partners need to collaborate in new ways. That means getting more connected, more supported and more prepared for what’s next—with vendor managed inventory (VMI) and collaborative replenishment.
These “win-win” supply chain methodologies enable trading partners to easily share inventory data to create a lean, demand-driven supply chain. This allows you to expedite order forecasting, optimize shipments and improve in-stock rates. TrueCommerce Datalliance VMI and collaborative replenishment are highly effective for any product mix, can support any replenishment model, and scale to any number of locations. Cloud-based implementation reduces setup time and costs to accelerate time-to-value, while keeping ongoing costs predictable and affordable.
By sharing inventory, VMI and collaborative replenishment help strengthen supply chain partnerships among suppliers, retailers, distributors, wholesalers and 3PLs. Marketplace demand swings become more visible, improving responsiveness and increasing the value each partner brings.
“VMI is a strategic tool that gives meaning to the overused term, 'partner'. It gives us the actual product demand information we need to fully understand individual distributors' evolving sales and inventory picture. This visibility allows us to tailor our products and services for each customer, making transactions better, cleaner, simpler.”
Benefits for Suppliers
For suppliers, VMI and collaborative replenishment are strategic initiatives that:
- Strengthen relationships with distribution partners
- Ensure partners get the right quantities and types of products
- Increase sales (typically by 5% to 25% or more) by enhancing sellers’ product assortments and eliminating stockouts
- Reduce operating costs by streamlining order management and eliminating order errors, product returns and emergency orders
Customer Success Stories
Benefits for Retailers and Distributors
Participating in suppliers’ VMI or collaborative replenishment programs enables retailers and distributors to:
- Improve the customer experience by having the right products on hand
- Reduce stockouts and missed sales without overstocking or carrying excess safety stock
- Increase inventory turns and cut carrying costs of inventory
- Cut purchasing administration costs
- Improve control over inventory and keep inventory levels stable