Vendor Managed Inventory Vendor Managed Inventory (VMI) The real time benefits Prepared by: Mr Umit Nedim Melbourne, Australia Mobile: +614 8133 4929

Benefits Vendor Managed Inventory 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

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.

Example of Customer benefit for one of the factories AUD 9.2 mil 35% improvement AUD 6.0 mil

Operational Flow Overseas Suppliers Customer Australia 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

VMI Business Flow Customer VMI Warehouse 3pl overseas Supplier Forecast Usage Production Recommendation Arrange Pickup Receive Goods Prepare Shipment Arrange Shipment Put Away Goods Create ASN Ship Goods ASN Receipt Confirmation Deliver Goods Receive ASN Confirmation Electronic Order Pick Goods KANBAN Cards Deliver Goods Receive Goods Electronic Delivery Docket Electronic Receipt Confirmation Billing Report Issue Invoice Make Payment

System Modules 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

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