What is it?
Managing DSM's inventory
With VMI (Vendor Managed Inventory),
the supplier becomes responsible for DSM's inventory. This assumes a
trustworthy relationship with the customer, as DSM has to give sufficient
information concerning its inventory management to the supplier. From then on,
responsibility for material planning shifts to the supplier, thus providing
extra service.
Optimising the supply chain
VMI can be used for bulk materials
and packaged goods. It helps suppliers and DSM to reduce stock levels and
optimise their transport, inventory and order processes, thus optimising the
supply chain.
Why should you use it?
By using VMI, the supplier and DSM can:
-
optimise the supply chain
-
reduce stock levels through closer integration
-
fully automate order handling and re-ordering
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guarantee continuous availability of materials
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reduce the number of rush orders
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reduce the number of deliveries
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simplify administration of the order billing process
-
provide an additional service to DSM as the supplier takes care of material
planning
