HOW DO VENDOR MANAGED INVENTORY SYSTEMS WORK?
Consumers today have high expectations when it comes to the availability of products, regardless of whether they are shopping online or in a brick-and-mortar store. If your shelves are empty, your competition can easily capture your customers as their own. To stay competitive, distributors, retailers, and suppliers must work in conjunction with each other effectively. The application of vendor managed inventory (VMI) systems is required to help achieve these goals. At Field, we are your source for vendor managed inventory solutions that give you the efficiency and seamless operation you need to optimize your bottom line.
Operation of Vendor Managed Inventory Systems
VMI allows partners along the supply chain to share inventory data automatically and efficiently, enabling the creation of a highly effective demand-driven supply chain. This allows for more accurate forecasts, optimized deliveries, and better in-stock rates. These systems also allow you to react to swings in marketplace demand in real-time.
Vendor managed inventory solutions utilize both point-of-sale and demand forecast data from customers and suppliers. They also account for predefined parameters such as service levels, max/min shelf presence, and inventory turn targets.
Who Benefits from VMI?
Wholesalers, suppliers, distributors, and retailers all benefit from VMI systems and relationships. Most often, the supplier is the VMI customer operating a VMI platform. The downstream partners offer real-time data and the shelf presence these systems require to produce accurate recommendations for product replenishment.