A storage contract managed by the Kreditor is a simple way to ensure that stocks arrive on time in the factory lobby. An inventory managed by the creditor is a process by which the manufacturer takes over the stock for the distributor or distributor. Vendor Managed Inventory or VMI is a process in which the lender creates orders for its debtors based on the information on the needs it receives from the Debitor. The lender and the debtor are bound by an agreement that determines inventories, filling rates and costs. A credit-managed stock contract is a simple way to ensure that inventory arrives on time in the factory lobby. Read 3 min The creditor verifies the information received by the creditor and the search for an order is carried out on the basis of the existing agreement between the lender and the debitor. The first is the activity data of the product known as 852. This EDI transaction contains sales and inventory information, such as major product activities and planning features, for example.B. The debiteur can also benefit from a reduction in purchase costs. Because the lender receives data, not orders, the purchasing service must spend less time calculating and producing orders.
The manufacturer can benefit from a number of advantages of the vendor-managed inventory, as it can access the data pos (customer point of sale), which makes forecasting a little easier. Manufacturers can also translate their customers‘ advertising plans into forecast models, which means there will be enough warehouses available when their promotions are in progress. This provision can improve supply chain performance, while reducing inventories and eliminating inventory. The lender-managed inventory model has enabled companies to offer an effective turnover rate and an effective level of profit. The model was first tested in the 1980s by Walmart and Procter and Gamble. Their vendor-managed inventory strategy has enabled Walmart to be the largest retailer in the world. With the common business model, the distributor or distributor orders a product from the manufacturer. This gives the merchant control over the size and delivery of the order.
The vendor-managed inventory system connects the distributor and distributor via an Internet connection or EDI. There are also benefits for the supplier and the customer, including: since a manufacturer has more visibility on its customers‘ inventory, it is easier to ensure that inventory does not occur, as they can see when items need to be produced. The goal of the system is to improve the filling rates from supplier to end customer.