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Vendor Management Inventory
Optimize stocks rolling out VMI

Provisioning Management

About

VMI technology stands for “Vendor Managed Inventory”.

VMI systems are part of the ECR (Efficient Consumer Response) initiative to provide the end customer with the greatest value, best service and maximum variety of products. To this end, total supply and demand synchronization is needed throughout the supply chain by means of data interchanges among the parties involved in providing the customer service (Vendor/Supplier, Distributor, and Logistics Operator).

The information exchanged is subjected to mathematical analyses of varying complexity, allowing accurate demand forecasts to help process orders and ensure delivery of the right amount of product at the right time.

VMI - Vendor Managed Inventory

The EDICOM VMI solution applies a management model based on three essential components:

  • Electronic data interchange services between distributor, supplier and logistics operator through EDI (Electronic Data Interchange) tools.
  • Specific tools for analysis and treatment of the information exchanged by means of complex demand forecast algorithms.
  • Mechanisms to automatically generate shipments, despatch advices and purchase orders to respond to the demand forecasts with efficient delivery of goods at the required time.

Advantages

  • No more stockouts
  • Fewer inventories in customer and supplier warehouses
  • Optimum planning and use of resources in product production and delivery
  • Shorter provisioning times
  • Cutting operational and financial costs
  • Increased sales

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