How to implement a vendor management inventory system

1. FIND MORE SHOP HELP LOG IN JOIN FREE ENGLISH (EN) PLANYWHERE SUBSCRIBE MORE READABILITY planywhere Subscribe October 13 2023, 11:19 How to implement a vendor management inventory system A vendor management inventory is the management of the customer’s inventory by the vendor. It means the vendor is physically managing the inventory at the facility of the customers. The inventory is at the customer’s facility and the responsibility of the vendor is to make sure that they are replenished properly and maximum and the minimum amount of inventory are held in right quantities. The vendor management inventory involves the role of inventory planning for the customer. Instead of the customer reordering when supply is exhausted, the distributor is responsible for monitoring and replenishing the stock of the customers. A streamline vendor management inventory optimizes the supply chain performance as the distributor can analyze demand and adjust supply order to maintain the inventory levels of the customers. The vendor management inventory is implemented by many 3PL service providers into the supply chain by in-sourcing their VMI practices within the four walls of the customer’s operations. This is done by other valued added services or providing services like kitting or holding inventory onsite to be closer the customer’s manufacturing facility. With these value-added services, the 3PL service providers save the time of their customers and also the costs associated with the moving inventory to a second location. A streamline, fluid and effective implementation of vendor management inventory requires the three elements to work together 1. Integration: Incompatible enterprise resource planning and warehouse management system software can cause inefficiencies and make it tough to anticipate and manage inventory levels. The renowned and dedicated 3PL service providers offer robust information technology services that have the power and flexibility to seamlessly integrate their warehouse management systems with the ERP applications of the customers. 2. Transparency: Fully integrating the customer’s supply chain needs utmost high level transparency that is build on the foundation of trust. With bird’s eye view of the customer supply chain the 3PL service provider is able to accurately monitor demand and proactively supply inventory. 3. Expertise: Setting up and integrating the systems required to capture data is the first step in the process. A thorough professional analysis is required to transpire the crucial step to isolate trends that impact order volume the levels of the inventory. Using this information the 3PL service providers and flawlessly project the demand and manage the inventory. Benefits of Vendor Management Inventory 1.Minimized costs: The main benefit is it helps businesses save money on their supply chain. It minimizes time spent on inventory planning on the retailer side, as the stock is managed by the vendor. 2.Less risk: Vendor Managed Inventory minimizes risk of ordering too much or not enough inventory. As vendors have control over the inventory, they accept risk of product not selling fast. 3.Better forecasting: Flow of data between vendor and retailer allows for more consistent and timely stock updates and orders. 4.Managed stock levels: Retailers need not have to worry about managing stock levels as vendors make long-term data-driven plans and manage shipments between many different retailers and move products more efficiently. Wrap up Vendor management inventory as a supply  chain management solution can enrich and solidify the relationship between a 3PL service provider and its clients. The dedicated service providers offer cost-saving solutions to their customers that enrich their storage, distribution and transportation initiatives. plany wher e Previous post Optimizing Inventory: Vendor Management strategies for success planywhere

2. Posts with tag Optimizing Inventory: Vendor Management strategies for success From parts to products: Unveiling the importance of Kitting and Assembly services Warehousing and Distribution services in Canada Vendor management is a great way to ensure that the supply chain runs seamlessly and efficiently. 3PL vendor management is a key aspect of any… 3PL Anywhere Inc is a leading warehousing and distribution services company in Canada. With our state-of- the-art facilities and experienced team,… Are you looking for a dedicated Kitting and Assembly services? If so, consider the services from a professional service provider. Kitting and… 0 comments POST A NEW COMMENT APPLICATIONS COMPANY PRODUCTS COMMUNITY CHOOSE LANGUAGE About "Share" button Frank ENGLISH News Help v.703 Privacy Policy User Agreement Recommendation technologies Help