Vendor Managed Inventory
MS Logistics will soon begin offering Vendor Managed Inventory.*
By definition, Vendor Managed Inventory (VMI) is a means of optimizing the performance of a Supply Chain in which the manufacturer is responsible for maintaining the distributor’s inventory levels. The manufacturer has access to the distributor’s inventory levels and assumes the responsibility for reorder points and purchase orders generation.
Vendor Managed Inventory model allows the manufacturer to receive electronic data via EDI transaction or via internet connectivity. This data manages the distributor’s sales and stock levels. The manufacturer can view every item that the distributor carriers. The manufacturer is responsible for maintaining the inventory levels according to the distributors stock and release plan. Under VMI, the manufacturer generates the order*, not the distributor using a pre-agreed inventory reorder point based.
