1. Getting Acquainted
Build Trust, Understanding and Good Communications
2. Organizing Data
Inventory to be well arranged and catalogue to ensure smooth transition to VMI
3. Preparing Important Data
Existing Stock, Trend, Forecast of demands
4. Set Goals
Replenishment process depends on company’s targets.
5. Adopt an Order Process
Establishing the Best Practices and Strategies for both parties
LE-PLUS SOLUTIONS employs a Vendor Managed Inventory (VMI) that serves to allow us to develop a more conducive environment for collaboration and enhances our understanding of every customer’s wants and needs. Our process allows us to get a more in-depth analysis as we acknowledge that every customer’s standard is unique.
Vendor Managed Inventory
WHAT?
An agreement between vendor and customer determining inventory levels, fill rates and costs, where vendors are able to create orders based on customer data like; new items and regular consumables
HOW?
A software that calculates a reorder point for each item with reference to data
BENEFITS OF VMI
1) Removes the need for safety stock
Vendors are the ones who are responsible in supplying items/parts when needed, not customers
2) Ensures No Stock-outs
Vendors have better visibility, and can provide forecasting on replenishment based on customer’s Point of Sale (POS)
3) Improves Business Performance
Lowers the need for warehouse space & resources, thus increasing savings
