VENDOR MANAGED INVENTORY SYSTEM
What is VMI?
Vendor Managed Inventory /vɛndər mænəǰd ɪnvəntɔri/ (noun) - Vendor Managed Inventory [is the process of providing] a mutually beneficial relationship where both sides will be able to more smoothly and accurately control the availability and flow of goods.
With VMI, a manufacturer or distributor assumes the role of inventory planning for the customer. Extensive information sharing is required so that the manufacturer/distributor can maintain a high degree of visibility of its goods at the customer’s location. Instead of the customer reordering when its supply has been exhausted, the supplier is responsible for replenishing and stocking the customer at appropriate levels (1).
An Overview:
Is VMI right for YOU?
Our VMI program was specifically created to alleviate our customer's from the daily hassle of tracking, ordering and stocking their hardware. Studies conducted in recent years have found that the average business spends between 25-30% of their operational budget on managing their inventory.
A later study highlighted the common symptoms that indicate issues related to inventory management (2) (3). These symptoms include:
•Increasing time needed to complete job
How does VMI work?
The Initial Setup: What happens before your VMI program goes live?
SELECTING ITEMS
1The first step in setting up any VMI solution is choosing which items are going to be included in the program. BMB works with our customers to identify the items that are best fit for VMI. The items chosen are typically based on the customer's usage of specific hardware (which items the customer is using the most of).
STORAGE/SHELVING SOLUTIONS
2After selecting which items will be included in the program, it is time for setup. Choosing the best shelving/storage solution for all your items is sometimes the trickiest part. Not to worry! We work with our customers to evaluate the best storage solutions based on available space, the type and number of items included in the program, and of course your personal preference.
ROUTINE RESTOCK SCHEDULE
3The next step in the process is coordinating a fixed restock schedule. Setting a routine schedule is a vital factor of the VMI program as this is the determinant for when parts will be delivered and restocked. During the restocking process, a BMB team member will refill any items with pre-existing low inventory levels from the previous visit (scanned during last restock date) followed by scanning any items with new low inventory levels to be refilled during next restock date.
BARCODE TESTING/OPENING ORDER
4Last but not least, the last step for the initial setup of any VMI program is testing your custom VMI labels to ensure all items are live & scannable. Upon completing a successful test scanning trial, a BMB team member will demonstrate the procedure that will take place during future visits and conduct the first scan process to be refilled during next restock date.
Standard Restock & Scan Procedure: What happens during regular visitation?
RESTOCK
1A BMB team member will first refill/restock any items with pre-existing low inventory levels that were scanned during the previous restock date. This will ensure that the team member does not scan any items that may have already been scanned during the previous visit.
SCAN
2After restocking any items with pre-exisiting low inventory levels, the team member will scan any items with new low inventory levels to be fulfilled during next restock date.
UPLOAD ORDER
3Lastly, the team member will upload all newly scanned items to BMB's order processing system. Your BMB sales associate will then review the scanned items and email the purchaser a quote before confirming the order.