Information you need to know about VMI:3. An overview of the information, benefits – limitations that every business needs to know about VMIBenefits of using VMI

There are many different specialized terms in import and export that not sure anyone can grasp. What is VMI? Let’s learn with the information you need to know about VMI that you need to note and remember!

Information you need to know about VMI:

1. Information about the concept of VMI

?What is Vendor managed inventory? Vendor managed inventory (VMI) is supply chain planning and optimization in which the supplier (Vendor) is responsible for the retailer’s inventory levels.

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Suppliers have access to inventory data as well as retailer business data to be responsible for coordinating orders, deliveries, and inventory planning for retailers to ensure Ensure business operations are always maintained at the optimal level.

The success of VMI largely depends on the supplier-retailer relationship.Lack of trust in data exchange can cause:Inventory imbalance Out of stock Increase in cost of technology (such as EDI) and changes to operate the VMI model. Retailers must proactively notify and place orders for big promotions. Increased responsibility for suppliers.

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4. When should businesses use VMI? – Information and notes you need to know about VMI

Some researchers argue that VMI is particularly well suited to environments with relative stability, with little change in demand, and a large number of standard products.

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However, both real-world studies and simulations show that VMI is also more effective than traditional replenishment for low-volume products with large changes in demand, despite using the method of replenishment. VMI in this environment is quite labor intensive.

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VMI is a good opportunity for suppliers because it allows to reduce excess capacity, aiming for higher production efficiency without increasing inventory or reducing order fulfillment goals. Furthermore, with limited resources, this method is useful in determining which orders can be delayed without causing loss to the retailer.

Hopefully with the above article, you will understand the basic information you need to know about VMI that you do not understand. If you want to know more information, knowledge of other industries or transport services, Logistics, customs … please update the latest articles from or call to receive the best information!