Vendor-managed inventory VMI

Key issue How can suppliers help to reduce waste in the customer s process  

Automated VMI originated in the late 1980s with department stores in the USA as a solution to manage the difficulties in predicting demand for seasonal clothing. Prior to this manual VMI had been around for many years - particularly in the food industry. Under manual VMI, the manufacturer s salesman took a record of inventory levels and reordered products for delivery to the customer s store, where the manufacturer s representative would restock the shelves. As product variety has increased and life cycles have shortened, manual VMI has been replaced by automated VMI. 

---

Vendor Managed Inventory (VMI) supplier manages the inventory at the customer site to ensure delivery capability (practiced among others in the chemical and electronic industry)... 

If the incident requires additional pharmaceuticals and/or medical supplies, follow-on vendor managed inventory (VMI) supplies will be shipped to arrive within 24 to 36 hours. If the agent is well defined, VMI can he tailored to provide pharmaceuticals, supplies, and/or products specific to the suspected or confirmed agent(s). In this case, the VMI could act as the first option for immediate response from the SNS Program. 

Value creation 11-21, 26-35 Value-driver trees 156, 159 Vendor managed inventory (VMI) 84 Ventro 34 Venture capital funds biotechnology 67, 77 corporate 117-118 innovation 32, 114 Venture capitalists 31, 66-67, 118 Vertical integration 37, 40-42 Vestolit 39 Victrex 98 Vinnolit 39 Virtual crackers 43 Virtual organization 122 Vopak 34, 35... 

Vehicle-routing problem with time windows (VRPTW), 2061 Vehicles, off-highway, 1470 Velocity encoders, 1903 Vendor-managed inventory (VMI), 779 Ventilation ... 

Vendor Managed Inventory (VMI). The supplier controls the inventory of the consumer, deciding on delivery times and quantities. (Holmstrom 1997). 

Disney, S.M., Towill, D.R. The effect of Vendor Managed Inventory (VMI) dynamics on the Bullwhip effect in supply chain. Int. J. Prod. Econ. 85, 199-215 (2003a)... 

In this section, it will be performed a literature review for each one of the four categories of the Demand management - Statistical Forecast, Sales and Operations Planning (S OP), Collaborative Plaiming and Forecasting Replenishment (CPFR) and Vendor managed Inventory (VMI). This review allowed identify the DDSC characteristics for each category which was used to develop the five level maturity model. 

For Vendor Managed inventory (VMI), the first step is to map current customer database to identify the group of potential customers to implement the VMI. Then, based on this list, commercial area together with supply chain should identify customers where actual POS information is readily available and could be shared on a daily basis with the company. Usually, potential customers for a successful VMI implementation are key account customers, like large retailers, airline companies, food chains, etc. One critical step in the VMI implementation... 

Consideration of industry initiatives in the E-commerce areas, such as efficient consumer response (ECR), efficient foodservice response (EFR), warehouse management systems (WMS), strategic sourcing and cross-docking, vendor-managed inventories (VMI), and continuous replenishment planning (CRP)... 

Vendor- Managed Inventory (VMI) Vendor- Managed Replenishment (VMR) The practice of partnering between distribution channel members that changes the traditional replenishment process from distributor-generated purchase orders, based on economic order cjuantities, to the replenishment of products based on actual and forecasted product demand. Source CRP Best) A process by which a supplier automatically replenishes customer stock based on actual sales or shipments. Also called continuous replenishment. (Adapted from APICS Dictionary, 10th edition) Some practitioners view VMR as an enhancement of VMI, requiring more collaboration. 

Vendor-managed inventory (VMI) In the VMI process, the vendor assumes responsibility for managing the replenishment of stock. Rather than a customer submitting orders, the vendor will replenish stock as needed. This process is sometimes referred to as supplier-managed inventory (SMI) or co-managed inventory. 

Newer methods of vendor-managed inventories (VMI) and jointly managed inventories 0MI) are offsprings of this effort. But in all cases, the focus is placed on meeting customer demand by improving the processes and methods used to plan production and manage inventories between... 

WDF has recognised that demand-driven supply chains require suppliers to be highly responsive. The company is actively examining ways in which suppliers inbound lead times can be reduced - particularly through a greater level of shared information and the introduction of vendor managed inventory (VMI) arrangements. 

---