Supply Chain Vendor Managed Inventory

Vendor Managed Inventory involves a supplier taking responsibility for maintaining an inventory of its products, on behalf of its customer. To enable this the customer has to provide regular data relating to sales and current stock levels.

When implemented successfully, this leads to benefits for both parties, as the supply chain is visible and inventory can be managed more effectively. This should result in improved availability, reduced obsolescence, reduced inventory costs and more efficient manufacturing processes.

A poorly managed VMI programme causes problems for both the supplier and its customer, resulting in stock outs and inventory write-offs.

Effective IT systems are essential to deliver the full benefits from complex schemes.

Total Logistics has been involved with many projects involving VMI. For further information, please contact Margaret Schofield.