Vendor Managed Inventory
Vendor Managed Inventory (VMI)
The real time benefits
Prepared by: Mr Umit Nedim
Melbourne, Australia
Mobile: +614 8133 4929
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Benefits Vendor Managed Inventory
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Transfer Inventory, and responsibility to Suppliers.
Visibility of the total supply chain.
Improve working Capital up to 35%.
Proven Inventory/Warehousing systems (Web based), including;
– Visibility of stock holdings
– Visibility into supply chain (ASN)
– Quarantine (theoretical) stores
– No locally loaded software management
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Vendor Managed Inventory
 It is a Web-based Supply Chain Management system used by
Customer, your 3pl and Suppliers.
 A Warehouse Management System is used to manage the
Logistics process by the 3pl.
 The WMS can be integrated with the VMI system to provide a
total solution for Customer’s VMI business model.
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-$1,000
Mar-09
Feb-09
Jan-09
Dec-08
Nov-08
Oct-08
Sep-08
Aug-08
Jul-08
Jun-08
$13,000
May-08
Apr-08
Mar-08
Feb-08
Jan-08
Dec-07
Nov-07
Oct-07
Sep-07
Aug-07
Jul-07
Jun-07
May-07
Apr-07
Mar-07
Feb-07
Jan-07
Dec-06
Nov-06
Oct-06
$11,000
Sep-06
Example of Customer benefit for one of the factories
Customer Inventory Value ($'000)
VMI BLIND
FACTORY
AUD
9.2 mil
$9,000
AUD
6.0 mil
$7,000
$5,000
$3,000
$1,000
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Operational Flow
Forecast & recommendation Via Internet
E-KANBAN Delivery
Cycle 1:16:2
Overseas Suppliers
Customer Australia
VMI W/H Australia
O/Seas
E-KANBAN Delivery
Cycle 1:16:2
VMI W/H Thailand
Forecast & recommendation Via Internet
Customer Thailand
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VMI Business Flow
Customer
VMI Warehouse
3pl overseas
Forecast Usage
Supplier
Production
Recommendation
Arrange Pickup
Receive Goods
Prepare Shipment
Arrange Shipment
Put Away Goods
Ship Goods
Create ASN
ASN Receipt
Confirmation
Deliver Goods
Receive ASN
Confirmation
Electronic Order
Pick Goods
KANBAN Cards
Deliver Goods
Receive Goods
Electronic Receipt
Confirmation
Electronic Delivery
Docket
Billing Report
Issue Invoice
Make Payment
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System Modules
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Forecast Usage
Recommendations
ASN Management (ASN = Advance Shipping Notice)
Billing Reports
Aging Reports
Inventory Status
Inventory Movement
Inventory Planning
Item Master
Supplier Information
Email Alerts
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Email Alerts / Notification
The system generates the following email alerts and notification to Suppliers:
 Minimum / Maximum Stock Alert
Email is sent when stock falls below minimum or maximum qty
 ASN Receipt Confirmation
Upon receipt of goods, email is sent to Supplier with the Part No and Qt Received
 New Demand Alert
When there is a change in Forecast Usage / Recommendation, email is sent to alert
Suppliers to adjust their Production
 New Billing Reports Notification
Notifies the Supplier when a New Billing Report is ready
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