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general Information

VMI Vendor Managed Inventory

Advantages & Technology
Advantages Technology
for the buyer
  • Improved fill rates from producer through to end-customer
  • Reduction in planning and order management costs
  • Improvement in service; the right product at the right time
VMI is more than just measuring
With a Vendor Managed Inventory system, the supplier must have access to the customer’s stock data. This is guaranteed by means of a VTM (Vendor Tank Monitoring) installation. VTM is defined as the measurement of the levels in the tank/silo and the transfer of this information to one or more outstations. The data are then transferred via the Internet to the Orbit Logistics system.
This is where VMI really kicks in, and where the integration of the software with the supplier’s ERP systems – such as SAP R/3 – comes into its own. The aim is to ensure that when stipulated replenishment thresholds are reached – and these are agreed with the customer on a contractual basis in advance – the process of planning requirements and automatically arranging replenishment is activated. Only then, can Vendor Managed Inventory play a part in our efforts towards the efficient design of an extended logistical supply chain.