With technology linking retailers and suppliers everyday, Vendor-Managed Inventory (VMI) logistics are improving and establishing a solid partnership between these two trading partners.
Better data sharing solutions have fostered an evolution of VMI, where data points such as retailer POS and supplier deliveries, credits and inventories are more accessible and improve the accuracy of demand planning accuracy, orders and replenishment.
Retailers are sharing more and better data with their suppliers than ever before, and putting them in charge of inventory replenishment. This is changing the traditional way of doing business. Now, it's based upon real-time supply chain collaboration, allowing suppliers to have access to customers' item-level POS data so there is less communication breakdown, better planning and increased customer service levels.
Here's how new inventory reporting is making this happen.
Reduced Forecast Error
The supplier and retailer are now able to align on more reliable joint sales and order forecasts because they both have visibility of this on-shelf data in real-time. This gives them a more effective way to plan distribution strategies based on actual consumer demand. Suppliers now have a more accurate look at what products people are actually buying, helping them improve production scheduling, accurate distribution and store activity planning.
Reduced Replenishment Cycle Times
New inventory reporting helps improve operational effectiveness because, with suppliers now having access to this data, retailers are more confident they will receive timely orders. They are free from the burden of having to keep high inventory levels for their safety stock and across the distribution network, which results in significant savings.
Improved In-Stock Rates for Retailers
Retailers no longer have to place orders now that suppliers have product activity data right at their fingertips. That’s because POS visibility lets suppliers observe actual product consumption rates, which better determines when retailers need to replenish their stock. And because these stock levels are highly visible, there are fewer errors in suppliers streamlining beer payments to meet the customers' demands.
Increased Service Levels for All
New inventory reporting is enabling better communication between trading partners, reducing data entry errors and making processing orders more efficient and effective. Both suppliers and retailers are able to accurately control the availability and flow of goods because real-time data ensures in-stock items are aligning with what consumers are actually wanting to buy.
New retail analytics software offering real-time reporting provides timely, transparent information so everyone has a clearer picture of what to expect. With older, more standard processes, suppliers were simply informed of the desired delivery dates and the need to make a delivery schedule. Now, they can see actual inventory statuses, enabling improved productivity and supply chain performance, and a stronger value chain partnership.
Vendor Management Inventory Logistics Made Easy
In the past, retailers have been in charge of ordering their inventory but now, with Jointly Managed Inventory, there's an evolution where they are putting the suppliers in charge.
New inventory reporting fine-tunes this process. Suppliers and retailers are now forming lasting partnerships that focus on mutual planning and provide them both with greater benefits. And with suppliers having access to real-time retail data solutions, they now have the tools necessary to make sure inventory is shipped at the right time, and to where it is needed. This speeds up customer delivery, decreases overhead and increases sales. To learn more ways to enhance retailer-supplier collaboration, don’t hesitate to reach out to us today.