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Vendor Management Inventory
Optimize stocks rolling out VMI

Provisioning Management

Components

Rollout of a Vendor Management Inventory or VMI (Vendor Management Inventory) project calls for ongoing collaboration between customer and supplier to ensure continuous supply of product to the recipient in an orderly manner and tailored to their needs, with no need to send purchase orders to the supplier of the goods.

To do this, we need a prior agreement between the parties, specifying the criteria to be used for product deliveries. The criteria take in features such as minimum quantities, reorder point, safety stocks, transport units, etc.

In any VMI model you must have a system for exchanging business information. EDI (Electronic Data Interchange) is the solution to let customer and supplier share relevant business information on how stocks and sales are doing.

The information exchanged by EDI is subjected to mathematical processes to determine product rotation and demand forecasts. Specific technologies are needed that can interpret the messages exchanged by EDI and make the necessary calculations to plan product deliveries.

Click on the Edicom VMI components to expand information:

Advantages

  • No more stockouts
  • Fewer inventories in customer and supplier warehouses
  • Optimum planning and use of resources in product production and delivery
  • Shorter provisioning times
  • Cutting operational and financial costs
  • Increased sales

Documents