Vendor Managed Inventory is the process where the supplier generates orders based on mutually agreed objectives and demand information sent by the customer.
Vendor Managed Inventory (VMI) is a streamlined approach to inventory management and order fulfillment. VMI involves collaboration between suppliers and their customers (e.g., distributor or retailer) which changes the traditional ordering process.
The goal of VMI is to align business objectives and streamline supply chain operations for both suppliers and their customers. The operational benefits that can be leveraged by those companies operating a VMI software solution is a result of:
- Improved Inventory Turns
- Improved Service
- Increased Sales
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Stock management is the function of understanding the stock mix of a company and the different demands on that stock.
Inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a given period.
Collaborative Planning, Forecasting and Replenishment (CPFR), is a concept that aims to enhance supply chain integration by supporting and assisting joint practices
VMI gives the supplier full visibility of demand along with better information about factors such as lead time, product launches, and packaging changes.
TrueCommerce use standard business procedures and protocols to exchange data with suppliers and distributors.
An Inventory Management method is a tool, technique or strategy used for storing, tracking, delivering, forecasting and ordering inventory or stock.