Vendor Managed Inventory or VMI is a process in which the lender creates orders for its debtors based on the information on the needs it receives from the Debitor. The lender and the debtor are bound by an agreement that determines inventories, filling rates and costs. Few points were mentioned in this summary: “Better visibility will allow the switch from air freight to sea freight” is, in my opinion, a fairly strong expression, without knowing the LT for air and sea transport, the dynamics of demand and the cost of storing equipment. – As has been said in some previous comments, in the VMI logistics input model, there are many things that need to be agreed between the customer and the supplier. This is consistent with the result of my master`s thesis “already covered with dust” on the implementation of VMI (with emission): the hardest and longest part of the implementation project is the legal agreement. Setting up transport and system-to-system connections with developed messages and related features in legacy systems with SOX requirements is the simplest part of the implementation. If the customer needs a product, they order a supplier. The customer must have full control over the date and size of the order placed, based on one of the examples above. The customer manages the inventory plan. The lender verifies the information received by the lender and the search for a contract is based on an existing agreement between the lender and the debtor.

Vendor Managed Inventory (VMI) is a supply chain agreement whereby an upstream agent (ex.B. supplier or manufacturer) takes control of inventory management decisions for one or more downstream agents (e.g. B retailers) (Fry, 2011). This type of agreement is also referred to as supplier-managed warehouse, continuous refuelling program or supplier restocking. The above VMI management concept is well explained. If 1 or 2 examples of case studies can be studied, this would provide a profound insight into BMI. VMI helps organizations reduce storage costs by transferring responsibility for inventory management and replenishment to asset suppliers. Nice article! Really good work in showing important information.

With VMI, the supplier indicates the quantities of delivery sent to customers through the distribution channel and uses data from the Electronic Data Interchange (EDI). There are a number of EDI transactions that may be the basis of the VMI process, 852.855 and 856. Vendor Managed Inventory (VMI) is a supply chain initiative in which the supplier is authorized to manage the stocks of agreed storage units on customer sites. The benefits of VMI Programe are well recognized by successful retailers like Wal-Mart. Supplier-managed stock (VMI) is defined as a stock managed by the supplier/supplier. Vendor Managed Inventory (VMI) includes a portion other than the customer who assumes responsibility for inventory management elements, including inventory fixing and management, recommendability and repopulation. In my experience, the following risks need to be managed in the Vendor Managed Inventory (VMI) transaction: Hello Sir, I read the article, but I don`t see how VMI will reduce costs.