Vendor Managed Inventories

20.5.2010 Seda Aksoy | Project 2| VENDOR MANAGED INVENTORY (vm?)| CONTEXT 1. What is Vendor Managed history (VMI) 2. Advantages and Disadvantaged of VMI 3. Types of starting-up a VMI Program 4. Six Steps to a prospering VMI System 5. Usage of VMI Applications 6. How to make VMI Work 1. WHAT IS VENDOR MANAGED INVENTORY Vendor Managend Inventory (VMI) is a supply chain practise where the muniment is monitored, planned and managed by the vendor on behalf of the consuming organization, based on the expect demand and on previously agreed minimum and utmost schedule levels. Traditionally, success in supply chain watchfulness derives from understanding and managing the tradeoff between inventory cost and process level. VMI projects can result in improvements along both dimensions. At least 2 forms can be distinguished : 1. A wholesaler (distributor) manages inventory levels for a retailer. VMI in this context is excessively called Efficient Consumer Response (ECR).

Note that the retailer still owns the incentory, flush though the replacing order is triggered by the wholesaler. 2. A producer manages invemtory levels for a distributor. Note that the distributor stil owns the inventory, even though the replenishment order is triggered by the manufacturer. VMI is based on the belief that suppliying parties ar in a better position to manage inventory as they have better knowledge of the goods production capacities and will times. Also it is based on the belief that allowing vendors to manage inventory reduces the number of layers in the supply chain, increasing stock profile and reducing overall inventory levels. To enable VMI, sales info must be provided to the vendor via Electronic Data reciprocation ( EDI), other electronic means, or via traditional human agents at outlets. Other terms for VMI are Continuous Replenishment and... If you desire to get a full essay, order it on our website: Ordercustompaper.com

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