Operations Payoff

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Vendor Managed Inventory – Great for the Supplier Too

In a recent blog post I reviewed the benefits of VMI* to the customer, but there are great benefits for the supplier as well.

  • Develop a close long-term relationship with the customer
  • Become well-established (or even irreplaceable) as a key supplier
  • Increase exposure to additional sales/service opportunities
  • Smooth the flow of materials and revenue

Overall, a well-designed VMI relationship has great value for both parties, which is the hallmark of a partnership.

*Vendor Managed Inventory (VMI) is a type of auto replenishment system in which the supplier has access to customer inventory information and is responsible for maintaining the inventory levels required by the customer.

© 2013 – Rick Pay – All Rights Reserved

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