VMI Partnering

VMI concept revolves primarily around the out-sourcing of procurement operation of “B” & “C” class commodities, which are also categorised as high volume and low cost commodities.

VMI is streamlined approach to Inventory management. It is PULL inventory management technique and is a process of Rationalization of vendors.

It is a Inventory replenishment arrangement being done by VMI Partner. VMI Partner monitors the OEM’s inventory with their own employees and refills the stock upon trigger.

Extensive information sharing is required so that the partner can maintain a high degree of visibility of its goods at a separate, designated location. Instead of the OEM reordering when its stock has been exhausted, the VMI Partner is responsible for replenishing the stock to OEM at appropriate levels.