Vendor Managed Inventory - The wonderful connection between vendor as well as buyer!

Vendor Managed Inventory is while the supplier of the  product is accountable for the maintenance of the product levels at the purchasing location. This buying location is usually a retail outlet, such as a store. The company which buys the product from the vendor will also supply the required data to the vendor. Vendor Managed Inventory can also be referred to as VMI.Vendor managed inventory is a complimentary business practice and strategy between the vendor as well as buyers. There are the multiple benefits of  this relationship. It decreases the chance of inadequate stock levels and outages; it allows the vendor to control  the display of the product, if the display of Inventory Visibility  is thought to be key in selling possibilities; it allows the vendor infield awareness; and it alleviates some of the buying company's supply chain needs - this allows the business to allocate supply chain resources to other areas.

 Details about Vendor Managed Inventory

This Inventory Visibility  ensures that the vendor's display requirements are met and it allows the business to allocate the labor required to another part of the business.Vendor managed inventory also ensures that a vendor representative has been regularly at retail level and is thus able to gain knowledge and awareness of product sales and impact at store level; as well as build a relationship with store management and attain data and discuss data on a needed personal level.

Quite often vendor managed inventory not actually owned by the store or retail location and the vendor makes its money by commission. Since this product is still owned by the vendor, but sold at the retail outlet, it benefits the vendor to do some of needed in-store work to sell the product. And it reduces inventory holding costs and other risk of the retail store. Quite often, VMI is used in a product which is "returnable" from retail to vendor. This is sometimes the case in the books and music retail industry.

Vendor managed software can vary. The vendor may have its own shipping and receiving system where it keeps track of all products shipped and received at store location; as well as product level numbers and return quantities.  

The process with maps sold at various retail outlets may consist of a vendor gathering sales and inventory level data before a store visit. The vendor will determine what product to ship to the store via a vendor representative; the representative will arrive and notify the shipper/receiver at the store of what quantity and price point of product has been put on display,   as part of the visit and work, manage the display of the product.Vendor managed inventory is a shared relationship and business practice between the supplier and retail outlet which allows proper product flow between store and vendor as well as customer benefits.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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