Why Would I Let a Supplier Manage My Inventory?

You’ve heard the term “vendor managed inventory” from colleagues and wondered how allowing your suppliers to maintain your inventory could possibly improve inventory management, lower operating costs and increase sales. VMI is not a new concept – it’s been around since the 1980’s when Proctor & Gamble and Wal-Mart started the practice. Today the practice is prevalent in retail and a widely accepted practice in wholesale distribution industries such as electrical, plumbing and equipment parts.

  • Straightforward and transparent process
  • Mutual benefits for distributors and suppliers
  • Distributor share their experiences

Closing: If you haven’t yet considered if VMI is right for your organization, now is the time to learn more about the process and evaluate what VMI can do for you.

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How VMI Helps Reduce Outbound Transportation Costs for CPG Companies

Outbound transportation costs average approximately 2.6% of gross sales for food, beverage and consumer products companies and significantly affect your company’s bottom line. In this paper you will learn about the root causes of poor vehicle fill rates and how a successful Vendor Managed Inventory (VMI) program can address those issues.

  • Problems driving down VFR – poor truck building and rush orders
  • Impact of VMI on outbound transportation costs
  • Complex issues that a strong VMI platform can overcome like promotions and product availability

Closing: Learn how implementing a state of the art VMI program can help to control outbound transportation costs and positively impact your company’s bottom line.

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Henkel’s Path to a New Generation of VMI

Henkel operates worldwide with leading brands and technologies in three areas: Laundry & Home Care, Beauty Care, and Adhesive Technologies and views VMI as a strategic business process. Many of their key customers expect a large supplier like Henkel to offer VMI capabilities. Learn the process Henkel undertook to evaluate VMI platforms and why they ultimately chose the Datalliance VMI solution and the results they’ve achieved.

  • Why VMI is important to Henkel
  • VMI platform evaluation and selection of Datalliance as the next generation platform
  • Transition to Datalliance was painless and they continue to expand their VMI program

Closing: Henkel undertook a rigorous and methodical process to select their next generation VMI platform. Benefit from their experience in this case study.

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Business Results of Vendor Managed Inventory

In this white paper, you will learn the powerful business benefits that can be achieved with a vendor managed inventory (VMI) program through analysis of key business indicators before and after VMI. Vendor managed inventory drives better information flow between suppliers and distributors resulting in smoother demand, more consistent orders and better transportation utilization as well as:

  • Primary Business Results of VMI – increased sales, improved inventory turns
  • Enhanced Customer Service – decreased out-of-stocks
  • Related Benefits – lower inventory, reduced administrative expenses, enhanced supply chain visibility

Closing: You will gain an understanding of the primary and related business benefits when implementing a VMI program as well as an understanding of the underlying drivers of those benefits. Don’t miss this popular and often cited paper!

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