1. How to Use this Slide Deck
Personalization
Any time the word “supplier” is used, think about adding your company name/logo
Personalize your goals/statistics for the program in slides with a green border, then delete the border

2. Vendor Managed Inventory
Date
Vendor Managed Inventory
Subtitle Edit Template

3. Vendor Managed Inventory
Leveraging Greater Information Sharing to Reduce Supply Chain Costs, Improve Sales, and Increase Customer Satisfaction
Vendor Managed Inventory is the process where the supplier generates orders based on mutually agreed objectives and demand information sent by the customer.

4. Executive Summary
The internet has made sharing data easier, increasing the flow of data within and between organizations
Effective supply chains leverage information from as much of the chain as possible
Sellers need to be more closely aligned with distributors, creating a seamless buying process
There is an opportunity to turn Supply Chain into a revenue driver rather than a cost center
TrueCommerce Datalliance VMI provides a dramatic ROI: many benefits, low risk, modest investment
Distributor Quote

5. The Problem
The distributor and supplier have different sets of information
Both spend time and money trying to predict what the other will do
DISTRIBUTOR
SUPPLIER
The problem with traditional replenishment is that the distributor takes the information they have access to and places the order with the supplier. The supplier, in turn, has to produce in anticipation of what the distributor will order. There are employees at the distributor trying to guess how long it will take the supplier to get the new inventory to them and there are employees at the supplier trying to guess how much the distributor is going want. No matter how good these people are, they are operating with incomplete information and occasionally they are going to get it wrong. When that happens, it will be expensive for both organizations.
SALES
PUTAWAY
EVENTS
INVENTORY
PROMOTION
LEADTIME
PACKAGE SIZES
ITEM NUMBERS

6. The Solution
Communicate between supplier and distributor to create better orders and smoother demand pattern
Tighten relationships and align business goals
Increase visibility throughout supply chain to enable better resource planning
Use cloud-based solution to eliminate hardware costs
DISTRIBUTOR
SUPPLIER
In a perfect world one group of people would be in charge of this business interaction; one group with access to all of the data. Vendor Managed Inventory helps us do this. It does this by increasing our access to information. The first step is to get the product activity data from the distributor to build the orders. By combining our information, the distributor can reallocate resources to more value-added processes and we get greater visibility into the supply chain, improved efficiency, and increased sales.

7. Increase Customer Satisfaction
Both immediate and end customer
Reduces distributor effort to order, the right product shows up on time
Increases brand loyalty, ease of ordering is a differentiating factor
Products on shelf more often for end customer
This is a value-added service we offer to the distributor. From the distributor’s perspective, with little effort from them our products show up on a schedule. The right products, in the right amounts. This means our end customers see the right products on the shelves.

8. 88% Productivity Reworked Orders Datalliance Customer Analysis
The impact on human capital is equally as impressive. Datalliance, our VMI software provider, recently compiled insight from a number of their customers across industry groups and found that their planners physically re-work as much as 40% of their non-VMI generated orders. Compare that to their VMI-generated orders that require only 5% manual manipulation. That’s a productivity gain of 88%!
Datalliance Customer Analysis

9. The Value of Collaboration
Enter your metrics then delete this bar
Average Location
Distributor In Stock %
Number of SKUs Stocked
Weekly Sales
Traditional Replenishment
97%
300
$20,742
After One Year of VMI
98%
318
$26,456
Source: actual data from software vendor
Using more data allows for a higher in stock percentage
Greater customer service encourages Distributor to stock more items
These factor combine to increase sales
By making the ordering process smarter we see that the distributor is in stock with our products more of the time and the ease of ordering encourages them to stock a wider range of our product. These factors combine to make our sales higher at the distributors who are in our VMI program than they were before joining. We want to increase the number of distributors in the program so that we can gain a bigger benefit.
[Use the Period Comparison report to generate these numbers for your program.]

10. Leveraging Expansion
The Datalliance fee structure means program expansion decreases costs for each Distributor
Because of the fee structure of our software supplier, expanding the program is less expensive than starting. There are volume discounts and the annual fee is fixed, no matter how many partners we have. Expanding the program allows us to amortize that cost across a larger distributor base. Increasing the distributor base would also give us greater sales insight into a wider range of our customers.

11. Program Expansion Benefits
Adjust this slide for your situation and then delete this bar
Increased collaboration with key Distributors
Smoother, more predictable demand pattern
Fewer reworked orders
Better customer service
Increased brand loyalty
Improved downstream visibility
Free sales force time for selling
Amortize fixed costs across greater Distributor base
Turn supply chain into a revenue driver
In summary there are a lot of benefits to expanding our VMI program. We will develop closer ties to our most important customers, see a smoother demand pattern, handle transactions with our customers more smoothly, and increase sales. Ultimately, broadening our program can help shift supply chain from a cost center to a revenue driver through more visibility downstream.