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Stock management is the function of understanding the stock mix of a company and the different demands on that stock. The demands are influenced by both external and internal factors and are balanced by the creation of purchase order requests to keep supplies at a reasonable or prescribed level. VMI helps organisations manage their stock by placing the responsibility of stock replenishment on the supplier.

How does VMI work?

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.
  3. The supplier then creates a purchase order and sends to a customer (distributor, retailer, end user).
  4. Once the customer approves the purchase order, the order is shipped.

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Vendor Managed Inventory (VMI)

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