Vendor Managed Inventory (VMI) has extended its scope to industrial vending machines (IVMs). IVMs have become the new favorites for MRO category managers across industries. IVMs can help reduce inventories and costs, improve supply chain efficiencies, and reduce administrative tasks around ordering, issuing and monitoring, and managing ordering levels.
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Suppliers of core raw materials like active ingredients are still reluctant to adopt VMI, due to low volume. However, many pharma companies have adopted VMI to manage non-critical raw materials such as packaging materials
Major retail and clothing companies adopt perpetual counting in addition to cycle counting to gain better visibility across supply chain, while aiming to cut down out-of-stock time. Perpetual inventory technique also helps in modelling demand-supply analytics.
Signing a VMI Contract? Here is the checklist.
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