How Vendor Managed Inventory (VMI) Strengthens Supply Chain Resilience and Collaboration

Today’s supply chain faces increasing challenges from everything from fluctuating consumer preferences to weather-related disruptions, to global supply chain instability. To keep pace with these fluctuations, inventory management has historically relied on a retailer’s ability to accurately forecast stock level needs. However, this often-manual process requires ongoing analysis of stock levels, creating, and sending orders to suppliers – all of which can be labor intensive and error prone.

To optimize inventory management, retailers and suppliers are increasingly turning to Vendor Managed Inventory (VMI) tools that transfer the responsibility for customer warehouse inventory management to the supplier. In this SaaS-based model, retailers provide a daily dataset per product, including warehouse inventory levels and store deliveries, to enable the manufacturer to manage the replenishment process in real time.

Thanks to this broader visibility into consumption trends, Generix clients can react more quickly to ongoing changes — ensuring higher service levels and improved customer satisfaction by avoiding on-shelf shortages.

Not only does this collaborative process deliver economic efficiencies, it also supports sustainability by ensuring trucks are always full by minimizing waste through maintaining minimal stock coverage in distribution warehouses.

Not only does this collaborative process deliver economic efficiencies, it also supports sustainability by ensuring trucks are always full by minimizing waste through maintaining minimal stock coverage in distribution warehouses.

Since the inception of the concept, Generix has been the leading VMI solution provider in Europe. We are witnessing a renewed interest from manufacturers and retailers in this discipline. Collaboration between supply chain players has never been more strategic to address current and future economic and environmental challenges.

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