If the customer needs a product, they order a supplier. The customer must have full control over the date and size of the order placed, based on one of the examples above. The customer manages the inventory plan. The lender verifies the information received by the lender and the search for a contract is based on an existing agreement between the lender and the debtor. Few points were mentioned in this summary: “Better visibility will allow the switch from air freight to sea freight” is, in my opinion, a fairly strong expression, without knowing the LT for air and sea transport, the dynamics of demand and the cost of storing equipment. – As has been said in some previous comments, in the VMI logistics input model, there are many things that need to be agreed between the customer and the supplier. This is consistent with the result of my master`s thesis “already covered with dust” on the implementation of VMI (with emission): the hardest and longest part of the implementation project is the legal agreement. Setting up transport and system-to-system connections with developed messages and related features in legacy systems with SOX requirements is the simplest part of the implementation. Vendor Managed Inventory or VMI is a process in which the lender creates orders for its debtors based on the information on the needs it receives from the Debitor.
The lender and the debtor are bound by an agreement that determines inventories, filling rates and costs. Vendor Managed Inventory (VMI) is a supply chain agreement whereby an upstream agent (ex.B. supplier or manufacturer) takes control of inventory management decisions for one or more downstream agents (e.g. B retailers) (Fry, 2011). This type of agreement is also referred to as supplier-managed warehouse, continuous refuelling program or supplier restocking. The above VMI management concept is well explained. If 1 or 2 examples of case studies can be studied, this would provide a profound insight into BMI. The second EDI transaction used in VMI is the order confirmation called 855. This EDI document sent to the customer contains a number of fields, including: Supplier Managed Stock (VMI) is defined as a supplier/supplier managed stock.
Vendor Managed Inventory (VMI) includes a portion other than the customer who assumes responsibility for inventory management elements, including inventory fixing and management, recommendability and repopulation. In addition, the VMI supply chain supplier has the freedom to control downstream refuelling decisions instead of fulfilling orders as soon as they are placed.