At Vendor Managed Inventory, MCB manages the stocks throughout the entire chain, even with you as a customer! We offer 'sufficient availability' instead of an order process.
When VMI is applied, MCB measures the customer's stock and determines when the stock needs to be replenished based on agreements with the customer about the minimum and maximum stock levels. MCB determines the times of stock replenishment and thus reduces, among other things, the number of transport movements.
VMI gives the most benefits with a constant and regular flow of goods, but VMI can also offer added value with small irregular consumption.
In general, the advantages of VMI are that the service increases and the average inventory decreases. In addition, it appears that the following benefits can occur:
• guaranteed stock by measuring current stock and replenishing it on time. This provides a faster response time and also greater adaptability to changes in consumption;
• reduction of the number of express orders and deliveries, because the supplier receives updated stock data, and in some cases the forecast data from the customer;
• simplification of the order and invoicing process. The delivery of the goods is the purchase order, which means that simple self-billing can be applied;
• increased trust between both parties offers the opportunity to further align the processes of the supplier and buyer;
• Better production planning by the supplier because the production plan can be tailored to the delivery time and volume of customers. In addition, the production planning can be further optimised if the suppliers can also determine the quantity to be delivered flexibly (as long as availability is guaranteed).
A condition for applying VMI is the confidence that the stock will always be replenished on time. In addition, proper agreements must be made about the distribution of the financial benefits and investments between them.
We strive for a common goal, which is to better match the supply of goods to demand, so that average inventory and costs can be reduced, without compromising service to customers.