1. Vendor Managed Inventory
Vendor Managed Inventory (VMI)
The real time benefits
Prepared by: Mr Umit Nedim
Melbourne, Australia
Mobile:

2. 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

3. 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.

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

5. 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

6. 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

7. 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
Alerts

8. Email Alerts / Notification
The system generates the following alerts and notification to Suppliers:
Minimum / Maximum Stock Alert
is sent when stock falls below minimum or maximum qty
ASN Receipt Confirmation
Upon receipt of goods, is sent to Supplier with the Part No and Qt Received
New Demand Alert
When there is a change in Forecast Usage / Recommendation, is sent to alert Suppliers to adjust their Production
New Billing Reports Notification
Notifies the Supplier when a New Billing Report is ready