Vendor Managed Inventory
Vendor Managed Inventory
Modul : Supply Chain Management (FEG 2323)
Tahun : 2011 ~ 2012
Content
Parts Page
1. Introduction 4
2. Defination 4
3. Goal 5
4. Objective 5
5. Benefit 6
6. Disadvantage 7 7. Characteristic 7
8. Method 8
7. Summary 9
8. Conclusion 9
9. Reference 11
10. Contact 11
VENDOR MANAGED INVENTORY (VMI)
1. Introduction
Vendor Managed Inventory (VMI) systems came into vogue in the 1990’s as a way to decrease supply chain costs. Some firms have successfully improved their supply chain performance by implementing an approach known as Vendor Managed Inventory (VMI). With VMI, the vendor specifies delivery quantities sent to customers through the distribution channel using data obtained from EDI (Electronic Data Interchange).
http://www.quickmba.com/ops/vendor-managed-inventory/
2. Definition
A means of optimizing Supply Chain performance in which the manufacturer is responsible for maintaining the distributor’s inventory levels. The manufacturer has access to the distributor’s inventory data and is responsible for generating purchase orders. To further define it, let’s look at 2 business models:
2.1 Under the typical business model:
When a distributor needs product, they place an order against a manufacturer. The distributor is in total control of the timing and size of the order being placed. The distributor maintains the inventory plan.
2.2 Vendor Managed Inventory model:
The manufacturer receives electronic data (usually via EDI or the internet) that tells him the distributor’s sales and stock levels. The manufacturer can view every item that the distributor carriers as well as true point of sale data. The manufacturer is responsible for creating and maintaining the inventory plan.
Modul : Supply Chain Management (FEG 2323)
Tahun : 2011 ~ 2012
Content
Parts Page
1. Introduction 4
2. Defination 4
3. Goal 5
4. Objective 5
5. Benefit 6
6. Disadvantage 7 7. Characteristic 7
8. Method 8
7. Summary 9
8. Conclusion 9
9. Reference 11
10. Contact 11
VENDOR MANAGED INVENTORY (VMI)
1. Introduction
Vendor Managed Inventory (VMI) systems came into vogue in the 1990’s as a way to decrease supply chain costs. Some firms have successfully improved their supply chain performance by implementing an approach known as Vendor Managed Inventory (VMI). With VMI, the vendor specifies delivery quantities sent to customers through the distribution channel using data obtained from EDI (Electronic Data Interchange).
http://www.quickmba.com/ops/vendor-managed-inventory/
2. Definition
A means of optimizing Supply Chain performance in which the manufacturer is responsible for maintaining the distributor’s inventory levels. The manufacturer has access to the distributor’s inventory data and is responsible for generating purchase orders. To further define it, let’s look at 2 business models:
2.1 Under the typical business model:
When a distributor needs product, they place an order against a manufacturer. The distributor is in total control of the timing and size of the order being placed. The distributor maintains the inventory plan.
2.2 Vendor Managed Inventory model:
The manufacturer receives electronic data (usually via EDI or the internet) that tells him the distributor’s sales and stock levels. The manufacturer can view every item that the distributor carriers as well as true point of sale data. The manufacturer is responsible for creating and maintaining the inventory plan.