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VMI

How does it work?

Traditional process
  • DSM detects critical stocklevel
  • DSM sends order to supplier by fax or phone
  • Supplier enters order into his/her ERP system
  • Suppier confirms order
  • Supplier delivers material to DSM
  • Stock is replenished

VMI process
  • Stock level data and DSM forecast are electronically sent to supplier
  • Supplier replenishes stock
  • DSM's stock is at required level

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