Order rework/ order touches refer to the processes a company must redo when fulfilling an order. VMI helps companies streamline processes and restock retailer shelves more easily. The process of replenishment begins with the retailers VMI solution sending a daily Product Activity Report with information regarding current products, stock and sales data. This Product Activity Report enables the VMI solution to send pre-built Purchase Orders highlighting the required stock via EDI to the distributors. By sending automated messages highlighting the required data, it enables those supplying into retailers to quickly and accurately process, build and ship the items required. 

By intelligently enabling distributors to plan ahead, VMI enables you to reduce order rework/ order touches and the amount of duplicate packaging processes, whilst simultaneously streamlining supply chain processes. 

Order rework/ order touches refer to the processes a company must redo when fulfilling an order. VMI helps companies streamline processes and restock retailer shelves more easily. The process of replenishment begins with the retailers VMI solution sending a daily Product Activity Report with information regarding current products, stock and sales data. This Product Activity Report enables the VMI solution to send pre-built Purchase Orders highlighting the required stock via EDI to the distributors. By sending automated messages highlighting the required data, it enables those supplying into retailers to quickly and accurately process, build and ship the items required. 

By intelligently enabling distributors to plan ahead, VMI enables you to reduce order rework/ order touches and the amount of duplicate packaging processes, whilst simultaneously streamlining supply chain processes. 

Reworks can significantly increase operational costs and lead to delays, affecting both production and shipping timelines. The need for additional labor to correct errors often results in higher expenses, while material costs for repackaging or relabeling add to the financial burden.  

Reworks can negatively affect inventory balance, causing overstock or stockouts, which in turn affects supply chain efficiency. The repeated process of fixing mistakes also raises the likelihood of further errors, compounding issues and potentially leading to customer dissatisfaction due to missed deadlines and unreliable service. 

Order touches, or manual interventions in the order process, introduce inefficiencies that can increase operational costs and slow down order fulfillment. Each touch requires additional labor, which reduces the benefits of automation and adds to overall expenses. 

 The manual nature of these touches increases the risk of human error, potentially leading to incorrect orders and data inconsistencies. This can further cause delays and bottlenecks, impacting customer satisfaction by extending lead times and reducing the reliability of the supply chain. 

Vendor Managed Inventory (VMI) can significantly reduce order rework in the supply chain by addressing inefficiencies like the Bullwhip Effect and frequent stock-outs. By providing suppliers with real-time access to demand and inventory data, VMI minimises the distortion of demand information, allowing suppliers to accurately adjust production and delivery schedules.  This reduces the need for reactive adjustments or reordering, which are common sources of order rework. Additionally, VMI helps maintain optimal inventory levels, reducing both stock-out situations and excess inventory, thereby cutting down on inventory-carrying costs and further streamlining the supply chain. By empowering suppliers to make data-driven decisions, VMI ensures a more efficient and cost-effective fulfillment process.