EDI Exchanges in the VMI System
EDI makes it possible to exchange messages in a standardized format that is understandable to both the client and the supplier, and to integrate the information into the ERP for online processing with the companies' management systems.
- Clients or distributors send their sales figures to the supplier on a regular basis (daily, weekly, etc.) using standard documents such as EDIFACT, X12, XML.
- They can also send information about stock at different points of sale or make deliveries using standard EDI messages.
- The supplier's EDI solution receives the stock and/or sales documents and converts the EDI standard into a data structure to be parsed, leaving the information ready to be processed by VMI applications.
Data Analysis and Sales Forecasting
Sales and stock information received by the supplier must be processed by specific data analysis and demand estimation applications.
These applications carry out a detailed analysis of the information exchanged with the customer, can consider information recorded in the ERP and match the supplier's internal data with that sent by the customer via EDI.
The demand forecasting system applies mathematical algorithms to the data to calculate product requirements at the point of sale. These studies consider particular issues such as minimum orders, vehicle capacity, promotions, seasonal sales, and more.
Automated Stocking and Shipping Processes
Data analysis and subsequent estimation of demand over time must be specified in the detailed shipments of cargo to the distribution point.
For this, aggregate consumption forecasts must be specified in partial product deliveries to meet end-customer demand over time.
VMI FLOW takes the demand forecast figures and establishes purchase orders or shipping advice messages processed via EDI and sent to inform the customer in advance of product shipments to be made.