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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.

We can remove the trouble of handling multiple providers in the supply chain by acting as your single point of control.
Consult your Unilog Representative now to integrate 4PL services into your business.
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Solutions

Global Inventory Planning and management

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

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

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

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

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:

  • inbound QC, power-up/boot-up testing
  • Re-packing, packing, re-labeling, kitting
  • Software update
  • Problem verification testing
  • Tier1 repairs, on-site technicians
VMI

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.

Competitive Advantages

Monitor – Identify – Prevent – Improve

Control Tower

Our unique state-of-the-art platform provides full transparency in every link of your supply chain, fully adjustable to your organizational needs and culture. We prevent disruption to your supply chain!

24/7 Support

Our team will get to know you and your business needs from the inside out. Our personal approach allows for a smooth flow of communication that ensures rapid execution.

Proactive SLA Monitoring

We monitor every transaction from the perfect pick at the warehouse up to POD. Any challenge in the process is preempted and efficiently resolved by our team. “We deliver your promises” is not only our motto – we live by it.

Innovation

We are constantly researching and developing, providing our partners with the best-in-class solutions available.

Agile Network

From decision making to the field, we ensure rapid implementation of new locations and solutions from start to finish.

Cost efficiency

Our business intelligence team constantly analyzes and monitors KPIs to identify patterns and derive key insights to the benefit of your businesses budget.
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Service Parts Supply Chain Services

Control tower

Tracking & Tracing

Advanced IT platform – Logivice

Distribution management

Supply chain visibility

Active GPS trackers

Technician on site

Supply Chain analytics

WH network

Multi channel fulfilment

API connectivity

Tailored Solutions

Order Management

IOR/EOR global solution

Development

Inventory planning & management

Transportation planning

We bring clarity to Complexity

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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SOW

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Ongoing

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