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