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Vendor Managed Inventory

Effectively Manage Your Inventory

 

Vendor Managed Inventory (VMI) optimizes the performance of a supply chain by having the manufacturer maintain responsibility of the distributor’s inventory levels. That is, the manufacturer has access to the distributor’s inventory levels, and takes responsibility for reorder points and generating purchase orders.

VMI allows the manufacturer to receive electronic data via electronic data information (EDI) transaction or an internet connection. This data indicates the distributor’s sales and stock levels, and the manufacturer can view every item the distributor carriers. The manufacturer is then responsible for maintaining the inventory levels according to the distributors stock and release plan.

Under VMI, it is the manufacturer, not the distributor who generates the order using a pre-agreed inventory reorder point based.

MSL utilizes VMI to maintain inventory and stock levels with automatic notification of reorder points. This streamlines the process and decreases manufacturer-to-distributor lead time.


For more information, contact MSL Packaging & Fulfillment today.