1. OMSAN LOJİSTİK

2. Vendor Managed Inventory (VMI) Inventory Planning and Management Latin America Logistics Center Logistics Management Series -

3. Vendor Managed Inventory (VMI) A Supply Chain Management Concept by which the Supplier Replenishes the Customer Stock at his own Discretion

4. Vendor Managed Inventory (VMI) Typically uses Point of Sales information to define replenishment needs Use demand forecast information The supplier is the owner of product until it has been sold or used

5. Vendor Managed Inventory (VMI) The Goal is to produce a Highly Efficient Supply Chain A Supply Chain in which Perfect Product Quantities Directly from producer to Distributor

6. VMI – Benefits to the Supplier Lower Inventory Levels More Accurate and Detailed Information of Demand Trends Forecast Algorithms based on Demand Increased Relationships with Retailers

7. Control vs. Efficiency Typically Retailers Refuse to participate because they do not want the supplier know what product and in what quantities they have on the shelf

8. Benefits to the Retailer Risk Elimination –They do not pay the stock that is not sold Opportunity Costs Reduced –They do not have to invest in keeping inventories that may not sold Improved Inventory Management –It is the supplier’s interest to keep the shelves filled with his product

9. Benefits to the Retailer Customer Satisfaction Increases –The Customer Wants Product Fresh Product Available –It is the Supplier’s Interest to keep fresh product of his brand Less Paperwork –With VMI, the retailer is focused in dealing with customers not ordering product or returning product out or date Reduce Order Size –With VMI, the supplier can replenish as often as he wants Increases profitability –Both parts increase profitability because of the improved efficiency

10. Key for Success Strong Demand Forecast –Retailers must bring sales information to the supplier of each product on shelves Replenishment Capability –VMI software produces forecasts to replenish each SKU –The system defines the delivery cycle

11. Information Requirements Visibility, Visibility, Visibility! A Robust VMI Software, helps to the data management process to Define Customer Fill Rate in advance to Unexpected Sales keeping management and delivery costs low

12. How does VMI work? Software VMI Order Supplier Customer POS Product

13. Ask yourself... Cost/Benefit Ratio? –Less Inventory? –Additional Sales? If the answer is NO to any of the questions… – Evaluate Alternative Options

14. If your Customer asks for VMI, Ask yourself... Will this account benefit from VMI? Is this a Strategic Account Does it Need Additional Investment In Stock Can we Afford The Extra Investment? Will the Sales Grow?

15. If your Customer asks for VMI, Ask yourself... Will Customer Service Improve? Information Systems Investments? Organizational Climate? Inventory Control Policy Joint Forecast?

16. Supplier Translator Inventory Translator Planning System Custom er Purchasing Translator Order Management 855 – Order Recognition 852 – Stock Activity VMI - Data Transfer

17. VMI – Vendor Manager Inventory Customer DC Customer DC Plant Inventory Status, Forecast? Order Recognition

18. When to use VMI?  Product with high volume and turns  Product with steady demand and low variance  Forecast errors lower than 25%  Continuous Review Inventory Control Policies  Visiblity and Compatibility of Customer Needs information

19. Quick Response Guaranty delivery of the right product Quantity in the right moment. Includes POS information to Forecast Demand Response to Market drives the relationship between customer and supplier and defines performance indicators QR is widely used USA amongst manufacturers, distributors, logistics operators, transport providers etc.

20. Supply Chain Management Information Systems Logility Planning Solutions TM Demand Chain Planning TM Supply Chain Planning TM Resource Chain Voyager TM Demand Planning Inventory Planning Event Planning Replenishment Planning Manufacturing Planning Logistics and Transportation Planning Demand Chain TM Voyager TM Supply Chain TM Voyager TM Fuente: Logility, Atlanta