Vendor Managed Inventory (VMI) is a logistic means for the improvement of the performance in the delivery chain, with which the supplier has access to the stock and enquiry data of the customer. With the VMI the supplier takes the responsibility for the existence of his products with the dealer. Basis are e.g. Abverkaufsdaten and current stocks, which will transfer Internet or electronics over DATA interCHANGE (EDI) from the dealer to the supplier.

Advantages from VMI are (among other things):

• snaps reaction of the supplier to need fluctuations
• higher service degree
• higher responsibility and more liberty of the supplier when disposing the supplies
• more economical lot sizes
• small stocks with the dealer

The dealer gives regularly a sales report to the supplier, on which the supplier sends a supply without order to the dealer. Here the fundamental technologies of the ECR help - e.g. EDI, XML, RFID, data bases, bar code, etc.

Over their Web portal the suppliers receive entrance to the dispositive data. In case of an understocking the dealers without own effort receive a delivery of the necessary parts. Over a ECG (electronics Commerce gateway) the advised supplies are transferred to the ERP system. Periodically consumption are placed inRechnung.

See also

• Continuous Replenishment
• Quick Response
• Efficient Consumer Response
• Category management

Literature

• Karl Simacek: Vendor Managed Inventory (VMI) - or who should dispose in the future. In: Andreas of the Heydt: Manual Efficient Consumer Response. Munich 1999, publishing house Franz Vahlen ISBN 3-8006-2279-3

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