Vendor Managed Inventories or VMI is a practice that has evolved fast with retail stores. A traditional large format retailer, will at a time, have a multitude of products on its shelves, all of which come from different suppliers and producers. In the old format, the retailer was supposed to place orders to refill its shelves. Not any more, the producers and suppliers are taking control of managing their inventory in the store, benefiting both parties. The vendors keep track of inventory levels at the store, decide reorder points and replenish stocks based on their forecasts.
This is supported by technology, with barcode and RFID scanners keeping track of products in the store, the computer system automatically communicating with the vendor databases and the vendor's supply process synchronized via GPS. Technology has been the enabler - and also the cause - of idea innovations in the supply chain.
This is supported by technology, with barcode and RFID scanners keeping track of products in the store, the computer system automatically communicating with the vendor databases and the vendor's supply process synchronized via GPS. Technology has been the enabler - and also the cause - of idea innovations in the supply chain.
