VMI Supply Chain
What is VMI?
Vendor-controlled inventory, or VMI, is the integration process that allows vendors to manage most parts of their supply chain. VMI is a mechanism that will enable suppliers to manage predefined inventory levels.
Vendor-controlled or traditional inventory management?
The main difference between VMI and simple traditional inventory management is the possibility to determine the size of the order, since, thanks to the VMI system, the buyer can share strategically important details like inventory levels and demand, and include delivery parameters with their supplier. And so, the supplier manages the supply chain from start to finish, and the buyer is responsible for providing accurate and timely information necessary for forecasting. Among other things, VMI includes advanced software that helps suppliers plan shipment and production dates to minimize inventory shortage risks.
When it comes to VMI’s , the owner of goods is still responsible for purchasing and setting up the rules of business for managing such inventories, but the entirety of inventory planning, replenishing and forecasting is now the vendor’s job.
Why does a business needs VMI?
Control of existing stocks, inventory planning, and forecasting requires a lot of resources, not to mention that any error regarding a company’s stock levels, can negatively affect the company’s profit and turnover value. A VMI model, can make your company’s inventory management more reliable and profitable and is ideal for improving processes. One of VMI’s strengths is solving problems relating to inventory planning and forecasting. Outsourcing this part of your supply chain will allow your business to focus on other equally essential elements of your business without harming the control and maintenance of accurate inventory levels.
Launching a vendor-managed Inventory System (VMI) is the beginning of setting the stage for crucial changes in your business helping reduce transportation costs and increase the efficiency of the order process.
Are you still thinking about whether your business needs a VMI system?
Below you can see the main advantages of vendor-controlled inventory:
Increased efficiency. The manufacturer often encounters several problems regarding stocks such issues negatively affects sales and customers, while the excess of goods also has a negative effect since it is expensive and requires a lot of warehouse space. Balance is key and is critical both for maintaining your budget and meeting your customers’ needs. Also, When VMI’s are managed using great digital platforms, error rate in inventory planning is minimal, luckily, Unilog a customizable inventory management platform to meet your needs.
Reduced costs and increased productivity. VMI models can help you minimize the number of costly orders to cover inventory shortages and avoid the return of surpluses; in addition, an approach based on more accurate and up-to-date data will reduce the total number of orders and possible costs. Your company’s employees can focus on other tasks to maximize their productivity.
Market analysis and improved inventory management based on consumer demand. The VMI partner assumes responsibility for restocking, which in turn increases the chances of a high-quality and rapid response to seasonal changes. A quick response to change in demand will improve the coordination of manufacturers’ production rate, which can significantly reduce the number of supply chain failures due to inventory shortages.
Ease and reliability in operation. A single inventory delivery schedule, approved routes, and correct forecasting from a VMI partner saves you from constant monitoring of several suppliers simultaneously.
How will Unilog increase the efficiency of your business?
The VMI system developed by Unilog provides the following steps for your company to increase the efficiency of your work, as well as increase monthly turnover:
– Unilog’s digital platform covers all aspects of the supply chain, including inventory management, monitoring shipping plans, and managing the delivery process and delivery to the desired destination and warehouse;
– Improved communication, which allows you to increase the efficiency and speed of processes, quality inventory management, inventory accuracy, and forecasting;
– High inventory turnover rate;
– Thorough analysis of warehouse inventory transactions and trends;
– Inventory size analysis preventing excess inventory and inefficiency in the supply chain;
– Reducing the risk of shortage or oversupply by increasing clarity and communication;
– Quick response to market demand;
– Optimization of work and reduction of total costs;
– Providing high visibility and control
Unilog is an expert in providing high inventory accuracy, precise forecasting and maintenance, reduced operating costs and high visibility of your supply chain.
Global Inventory Planning and Management – efficient models developed by our business intelligence team can help your organization to optimize your inventory levels and availability globally.
Vendor scheduling and PO matching – we provide your organization a complete audit trail, with full visibility of your goods flow from the OEM to your inventory, available for sales order. Matching internal or external purchase orders, allowing you a complete real time overview of your supply , enabling you fact based decision making and control.
Distribution transport management – we are interconnected with over 100 different carriers globally, allowing best in class solution in every territory both service and cost wise, ensuring real-time traceability on the final mile delivery
Global trade compliance – our in house team of global trade compliance together with a global network of in country customs consultants ensure your activity is compliant throughout your supply chain, we provide global coverage of IOR/EOR services for both sales and RMA needs including licensing where needed, ensuring undisrupted regulatory compliant supply’s flow.
Value added services – a one stop shop for your inventory needs, our DC’s provide a verity of value add services saving you time, cost and mileage:
VMI – Unilog can help you gain control over your inventory and increase the availability of your own products. Lower cost of capital due to a more efficient inventory management process, Reduce overall complexity and risk in relation to the sourcing and storage process, Lower administration cost by reducing to minimum backorders and returns.
The Logivice control tower, Unilog’s web-based solution, enables our clients to view and act on events using a single platform, empowering them to effectively meet modern digital logistical challenges. It contains all the technology, organizational tools, and processes needed to capture data from all stages of the supply chain, from the manufacturer to the consumer. The control tower gathers and analyzes realtime data throughout the supply chain.
Unilog not only presents you with the current status, but also proactively manages it and sends an alert when it looks like a SLA is at risk. Our realtime system ensures that, whatever is needed to make it happen, goods are delivered by the promised date.
Logivice is a realtime Control Tower developed by Unilog. Our tailormade system supports our customers’ global activity, enabling us to operate and execute our customers’ global supply chain requirements.
Control your entire fulfilment operation through our convenient platform. Seamlessly manage your inventory, sales or RMA orders, defective part returns and more.
Logivice enables you to manage distribution, providing the ability to take decisions based upon urgency and cost with a promised delivery time.
The challenge is in managing agile, stable and rapid supply chains, supporting multiple inventory sites, sales channels, and distribution across an increasing number of operations and partners. Logivice provides deep E2E supply chain visibility across global locations, providing transparency into on-hand inventories, in transit, international and domestic shipments, order fulfilment status, deliveries, material flow and more. Full supply chain visibility enables our clients to provide high-level service wherever and whenever they operate.
Our active GPS trackers allow you to track your shipment more precisely whenever you need to, in whatever way that suits you. Logivice supports end-to-end tracking solutions throughout every stage of our clients’ shipments.
Do you need an onsite technician? We will supply one tailored to your needs in any location – whether it’s a technician to support your ongoing activity or a one-time upgrade project. Whatever you need, whenever you need it – we will make it happen.
Unilog utilizes the most up-to-date BI Supply Chain Analytics solution, supported by a passionate analytics team. Supply Chain Analytics is key to successful and seamless flow management. By ensuring key insights are identified and highlighted, we proactively see patterns and risks and act accordingly to enhance your Supply Chain Management. Our methodology for metrics and KPI measurement is a great tool for your ongoing continuous planning and agile supply chain development.
Increase your sales by high availability, fast response time to demand, lower costs and save time by using our global fulfillment center partners. Unilog has more than 200 active sites and an additional 500 sites available globally to support your supply chain anywhere in the world.
Today, fulfillment combines different sales channels from B2B to B2C, enterprise delivery or end consumers. Our multichannel support for a wide range of sales platforms, all connected to Logivice for full inventory control and online fulfillment, is a robust and reliable supply chain solution.
We provide a web (cloud-based) solution that can be accessed by any authorized user from anywhere. Our system’s flexibility and unique architecture allows us to easily and quickly integrate with a variety of WMS. In addition, our system provides WMS capabilities for warehouses which prefer to work directly on our platform. Unilog’s system, Logivice, utilizes an API to interface with leading ERP (including SAP, Oracle), WMS, and CRM systems which have been implemented and are in use for our current customers.
Unilog’s strategy is to provide the best solution to fit customer challenges and needs. “Tailored” means that we will choose the best location, design the best process and develop whatever we need, technology-wise, within Logivice. Everything is done to provide added value for our clients’ operations.
Unilog manages various order types for our customers. All of the order types are opened on the Logivice system by an API/EDI connection to our customers CRM/ERP system and transmitted to the relevant warehouse for operation. Inbound/Outbound transactions are transmitted back to our customer’s ERP systems by an API/EDI connection. We manage sales orders, BO, PO, VMI, service parts, scrap, replenishment, WH transfer, repair and more.
As a global supply chain solution provider, we have the set-up for IOR/EOR services, providing guidance and solutions for IOE/EOR in all relevant locations and making your entrance to a new market very smooth.
Unilog’s development team can support any need your company may have. Our customers obtain rapid response as we provide tailored solutions and stay abreast of continuous developments to meet their global supply chain needs.
We bring clarity to realtime online inventories globally. Whether it is managed in our network, other sites, your OEMs or VMIs, we have the data available for your team. Using our planning services, we can reduce the workload, making sure you always have the parts you need and ensuring high availability.
Looking to improve your efficiency with your shipment scheduling? We’ll be happy to provide you with our experience and tools. Logivice supports smart scheduling, leading to SLA improvements and cost savings.
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We design visible, feasible and achievable solutions and manage them for you. Unilog defines the SOW, identifying unique customer needs in the replenishment process. Inbounding 100,000 serials or a testing a server requires a different approach. Dealing with a defective unit inbound or field return is not the same as a PO inbound or a WH transfer inbound. Outbound of a service order is different than an FMCG with expiration date outbound. Shipping & tracking of small parcel or full tracks can lead to different flows and process.
Our SOW process focuses on the business challenge and its unique needs. Once we’ve gained an in-depth understanding of the challenges & needs, we design a unique solution to best support them.
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