As we know it today, Vendor Managed Inventory (VMI) is used to monitor and replenish a distributor’s inventory by a supplier. However, VMI implies some degree of collaboration, between the two, that link the different planning processes of each partner. There are several ways to specify these links between
each partner’s processes. Are there common objectives? Are there any requirements and/or constraints?
A THOUGHT LEADERSHIP WHITE PAPER
Where Are We Today? Wholesale Distributors have been in the business of managing their inventories for years…even generations. Yet most appear to be satisfied with the typical 3 to 4-inventory turns a year (some a little more, some a little - or a lot less). Frankly, I don’t understand why this is acceptable in an era where profits, cash flow and competitive advantage are critical success factors.
Eliminating the nonvalue-added activities, and inventory, is the greatest potential source of improvement in a wholesale-distributor’s performance. Click below to read full article.
Howard W. Coleman has worked with over 145 clients in distribution management and manufacturing consulting engagements.