Vendor Managed Inventory

Intelligent processes for a reduced capital outlay

The cooperation thought that Vendor Manged Inventory (VMI) or Supplier Managed Inventory (SMI) are based on have one goal: Reducing the inventories and capital commitment, shorter reaction times and increased service levels. VMI/SMI is done by the supplier or outsourcing partner via consignment warehouses based on inventories at the customer. The replenishment is based on the forecasted consumption meaning that the supplier or logistics service provider activates the order of the customer to itself. For the customer, this means that the warehouse inventory is zero since the goods receipt booking is the same as the consumption booking. Time intensive work which normally occurs between the sales and procurement is not needed. Use the experience and know-how of inconso as a benefit! Together, we can achieve impressive successes for both sides on the basis of VMI/SMI. Advantages for the customers: Reduction in the safety inventory Reduced capital commitment Simplified dispatching Reduced communication errors Less ad-hoc orders Advantages for the supplier: Possibility of transport optimization Higher flexibility Minimization of own inventory Less ad-hoc orders Strengthening of the customer retention In different studies, it was proven that savings of up to 50% of the costs along the logistics chain were achieved through the use of VMI/SMI.