Vendor Managed Inventory Program
- When we talk about inventory management, we know that there is a considerable hidden cost associated with proper inventory control which may even be higher if a customer orders a product and it’s out of stock. This can have a repercussion on the customer’s sales and growth.
- Thus, Eran has a Vendor Management Inventory (VMI) program where it offers the customers a means of optimizing Supply Chain performance. The VMI program is responsible for storing the inventory for them according to predefined specifications.
- The Team keeps a track of what product’s availability is exhausting based on sales reports and also manages replenishment stock.
- The VMI Program is beneficial for when the customer has either run out of stock or needs backup stock, as it saves warehousing costs and the dilemma of maintaining inventory levels.
- Even better, VMI Program is also intertwined with the MTO (Made to Order) Program and JIT (Just in Time) delivery Program.
- This program is beneficial in the 3-6 months forecast of finished products so that the customer does not have more or less of the desired products. Not only does it help in keeping stock availability according to the products ordered by the customer, which is monitored on a weekly or monthly basis but also maintains transparency in the monthly usage of products.
- In conclusion, Vendor Management Inventory allows the customer to concentrate on selling more of their products, while also keeping tabs on their inventory and stock availability, maintain efficiency and a quick response to orders.