Business Results Of Vendor Managed Inventory

Topics:
Inventory Management
Tags:
Benefits,
Channel Management,
Distributor,
Human Resources,
Marketing,
Sales,
Sales Force Management,
Sales Strategy,
Vendor Managed Inventory
Source:
datalliance

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Overview: Vendor Managed Inventory (VMI) is a process in which a supplier generates orders for its distributor based on demand information sent by the distributor. VMI was first applied to the grocery industry, between companies like Procter & Gamble (supplier) and Wal-Mart (distributor). VMI is now providing the benefits of smoother demand, increased sales, lower inventories and reduced costs to many other industries. To help quantify the business benefits of VMI, data was gathered and analyzed from over 500 distributor's sites. The authors looked at key business indicators before and after VMI for locations that had been using VMI for few years. The primary business indicators analyzed to determine the overall impact of VMI were overall sales, inventory turns and service.

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Format: PDF | Size: 179KB | Date: Oct 2006 | Pages: 6

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