Vendor managed inventory (VMI) is an inventory that is managed by the vendor or the supplier. In many warehouses India, a VMI may come as a Models in Vendor Managed Inventory
breather for it releases the owner of the behemoth task of managing and monitoring the inventory. But that shouldn’t be the only reason why one should adopt that model. It is a logistics solution, accepted, but there needs to be a clear understanding and sufficient reasons to support the adoption.
When and how this specific model will suit your needs need to be taken into consideration, says a manufacturing space for lease firm. A vendor managed inventory is much more than what it seems to be on the outer periphery. A VMI, from managing the tiniest of tasks to a customized collection of tasks looks into everything and offers a plethora of solutions. Here are a few:
breather for it releases the owner of the behemoth task of managing and monitoring the inventory. But that shouldn’t be the only reason why one should adopt that model. It is a logistics solution, accepted, but there needs to be a clear understanding and sufficient reasons to support the adoption.
When and how this specific model will suit your needs need to be taken into consideration, says a manufacturing space for lease firm. A vendor managed inventory is much more than what it seems to be on the outer periphery. A VMI, from managing the tiniest of tasks to a customized collection of tasks looks into everything and offers a plethora of solutions. Here are a few:
• Small scale refilling calls for a physical stocking which is normally practised in supply chain operations. The vendor actually visits the inventory with a truckload of products and he brought along on estimation and stock up as per convenience and space after physically inspecting the inventory.
• In a next, higher model to this, a representative visits the inventory and checks on the stocks. After careful scrutiny, he sends back a report to the vendor. The vendor may arrange for a physical restocking or may leave it to the representative to take care of the stocks. It depends on the mutual understanding they reach.
• Next is even a more advanced version to the previous model. The customer takes up all the decisions in his hands without relying on the vendor a bit. He then submits a report telling his usage and inventory levels on the basis of which a replenishment report is prepared.
These are the models that VMI works around. However, they don’t and shouldn’t limit the horizon and the possibilities in the field.
• In a next, higher model to this, a representative visits the inventory and checks on the stocks. After careful scrutiny, he sends back a report to the vendor. The vendor may arrange for a physical restocking or may leave it to the representative to take care of the stocks. It depends on the mutual understanding they reach.
• Next is even a more advanced version to the previous model. The customer takes up all the decisions in his hands without relying on the vendor a bit. He then submits a report telling his usage and inventory levels on the basis of which a replenishment report is prepared.
These are the models that VMI works around. However, they don’t and shouldn’t limit the horizon and the possibilities in the field.