Frequently Asked Questions
Q. What is Vendor Managed Inventory (VMI)?
Published on: October 10, 2010
A. Vendor Manage Inventory (VMI) is a supply chain solution by which a supplier and their customers work together to maintain an agreed upon level of inventory based on daily demand and a predetermine set of goal. By responding to demand the supplier is able to maintain accurate inventory levels, order fulfillment flows smoothly, and they are able to control transaction cost.
In the VMI supply change solution inventory is replaced or pulled in based on daily demand-data supplied by the customer. This is different from the older method by which the customer issued purchase orders to the supplier for an exact number of items to restock.
The VMI supply chain method is a demand-driven inventory replenishing solution that allows companies be to more agile. It reduces the need for the customers to stock large amounts of inventory, giving them the ability to adapt to current needs and demands more quickly.
See the article Benefits of Vendor Managed Inventory for more information.
Read More Herndon FAQS
A. Vendor Manage Inventory (VMI) is a supply chain solution by which a supplier and their customers work together to maintain an agreed upon level of inventory based on daily demand and a predetermine set of goal. By responding to demand the supplier is able to maintain accurate inventory levels, order fulfillment flows smoothly, and they are able to control transaction cost.
In the VMI supply change solution inventory is replaced or pulled in based on daily demand-data supplied by the customer. This is different from the older method by which the customer issued purchase orders to the supplier for an exact number of items to restock.
The VMI supply chain method is a demand-driven inventory replenishing solution that allows companies be to more agile. It reduces the need for the customers to stock large amounts of inventory, giving them the ability to adapt to current needs and demands more quickly.
See the article Benefits of Vendor Managed Inventory for more information.
Read More Herndon FAQS
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