Vendor Managed Inventory (VMI) experts can implement Supply Chain Collaboration programs with minimal disruption and maximum results.
Supply chain collaboration is in vogue. Customers have figured out that if suppliers have access to more information on what they need and what is important to them that they’ll typically do a better job of meeting those needs. Suppliers have figured out that the more they understand customers, the more likely they’ll be able to delight them while minimizing spending. And this type of thinking carries over to your suppliers’ suppliers and customers’ customers and all supply chain parties in-between such as transportation and logistics partners, trusted advisers and more.
So, what are some of the ways supply chain partners collaborate?
- Sharing of customer preferences– the more your supply chain understands about the end customer (whether a consumer, patient, manufacturer etc.), the better served the customer will be.
- Sharing of forecasts– the better your supply chain understands your production schedule or sales forecast, the better they can ensure you have what you need when you need it at the lowest cost.
- Sharing of inventory– key to VMI is the sharing of inventory information. The best way to maximize performance of the supply chain is to provide access to inventory information in combination with trust. For example, if your supplier can save $1000 by temporarily reducing your inventory until an already-scheduled truck is available to deliver the next day and you will not run out for 5 days, why not save $1000?
- Sharing of resources– vendor managed inventory experts can help set up these types of programs with minimal disruption and maximum results. Not every supply chain partner will have the same type of resources. Why not share to better the entire supply chain? For example, one of our clients had a technical guru, another had a spreadsheet guru and another had a VMI guru. If they had access to all three for the implementation of VMI, it would be a win-win-win.
Did you like this article? Continue reading on how to be the Strongest Link in your organization:
Vendor Managed Inventory Is Making a Comeback
Supply Chain Collaboration
About APICS
APICS is the leading professional association for supply chain and operations management and the premier provider of research, education and certification programs that elevate end-to-end supply chain excellence, innovation and resilience. APICS Certified in Production and Inventory Management (CPIM) and APICS Certified Supply Chain Professional (CSCP) designations set the industry standard. With over 37,000 members and more than 250 international partners, APICS is transforming the way people do business, drive growth and reach global customers.
The Inland Empire Chapter covers the inland empire region of Southern California, which spans the easternmost portion of Los Angeles county in addition to San Bernardino and Riverside counties. The chapter offers educational classes, programs and special events in the hotbeds of manufacturing and distribution activity including Ontario, Riverside, and Temecula. APICS Inland Empire partners with other organizations supporting manufacturing and distribution such as the DMA (Distribution Management Association), neighboring APICS chapters, industry leaders and government officials in support of furthering the region’s workforce development and growth.