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VMI Newsletter

The use of VMI has gained acceptance in many industries. What was once thought of as an experiment, has now become the preferred way of doing business.

This newsletter keeps you informed on the increasing growth of Vendor Managed Inventory. The recent news articles and press releases found within explore the innovation that is becoming the standard throughout the business world.

As always, we welcome input on topics for future editions of this newsletter. Please feel free to contact us at with your ideas and suggestions. If you would like to advertise in or in the next edition of this newsletter please click here. We hope you enjoy the newsletter!

VMI Articles & News

BP Lubricants USA Selects Datalliance as Platform for Vendor Managed Inventory Program

Daily Finance Website
Datalliance announced today that BP Lubricants USA Inc. has selected Datalliance VMI as the platform for their Vendor Managed Inventory (VMI) program. "We see Vendor Managed Inventory as a win-win for both our customers and ourselves," said Eric Aronowitz, BP Lubricants, USA Retail Solutions and Offer Manager. "The goal of our VMI program is to work even more closely with key customers to jointly build sales while at the same time improving inventory asset utilization. We chose Datalliance VMI as the foundation for our VMI program because Datalliance has a proven track record of helping companies launch successful VMI programs across many different industries. We also like the fact that Datalliance VMI is delivered using the Software-as-a-Service approach, enabling us to get up and running much more quickly and cost-effectively."

Weyerhaeuser triples size of Virginia DC (to Support vendor managed inventory (VMI) of more than 150 SKUs

Home Channel News Website
Weyerhaeuser has added 70,000 sq. ft. of warehouse space to its Richmond, Va., distribution center, tripling the facility’s inside storage. The company will use the space to support distribution of additional third-party products, including vendor managed inventory (VMI) of more than 150 SKUs of James Hardie siding and trim products, as well as 100 SKUs of cedar decking, landscaping, siding and trim.

Datalliance Continues Strong Vendor Managed Inventory Service Growth in First Half of 2012

Yahoo Finance
Datalliance today announced key growth metrics for the first half of 2012. The company realized a 23% increase in revenue for the first half of 2012. This revenue increase puts Datalliance on track for an eighth consecutive year of > 20% annual revenue growth. Increased revenue from the existing customer base as well as the addition of a number of new customers contributed to the overall revenue growth. The new customers include leading suppliers in Consumer Packaged Goods, Medical Devices, Electrical, Plumbing, and Automotive Aftermarket. As the world's largest independent Vendor Managed Inventory service provider, Datalliance VMI saw increases in all key volume statistics and now manages over 15,000 locations, 16M+ SKUs, and $13B in annual sales. Datalliance also continued to develop new VMI innovations through delivery of two new releases of its Software-as-a-Service (SaaS) VMI platform.

Vendor Managed Inventory for Global Sourcing Companies

Global Supply Chain Management Website
Vendor Managed Inventory (VMI) is an operating model in which the supplier delivers its good to the customer but the actual sale is postponed after the actual use/sale by the customer. The supplier, which can be a manufacturer, reseller or a distributor monitors the customer’s inventory levels and makes inventory replenishment decisions regarding order quantities, shipping and timing. The advantages of implementing VMI program can be summarized as: reduced inventory costs, better response to market changes, reduction in demand uncertainty and more flexibility in production planning and distribution. Recentely, we focused on how VMI can support global sourcing…

The Right Track
In fact, nearly a third of supplier respondents said they believed their vendor-managed inventory programs were a primary reason behind their customers doing business with them.

Hubbell Expands Collaborative Commerce Program with Datalliance Vendor Managed Inventory Service

Hubbell’s VMI program is one of the most successful and respected in the electrical industry. With almost 30 trading partner connections, several thousand partner sites, and over 30% of their business being conducted through VMI, it is one of the largest and fastest growing VMI efforts in the industry. “The evolution and expansion of our VMI program is a direct result of keeping our focus on helping customers to be more successful by growing sales, reducing costs, and improving efficiency,” explained John Riley, Manager e-Commerce, Hubbell.

Why Use Consignment Inventory or Vendor-Managed Inventory Systems?

United Surface Preparations Website
Do you currently use consignment inventory or vendor-managed inventory systems? If the answer is yes, then you already know about the plethora of benefits that come from these managed inventory systems. If not, then these systems are something you should familiarize yourself with. Consignment inventory and vendor-managed inventory programs assist companies in controlling their inventory costs and maintaining the lean manufacturing aspect of the company.

Framework to Implementation for Vendor Managed Inventory

International Journal of Engineering Research and Development
The management of inventory by the supplier or vendor continues to draw attention in many industries. The operational benefits of VMI are very compelling. The costs of implementing VMI include investment in technology and in creating the organizational structure. Many of the technology costs associated with VMI are declining. Most of the inventory reduction achieved with VMI can be attributed to more frequent inventory reviews, order intervals, and deliveries that characterize this approach. Opportunities for greater coordination of activities among supply chain participants can be exploited in sophisticated ways to increase the value created by VMI. ..

Town Among Several Municipalities to Receive Award for VMI Program
The Town of Oakville was among several municipalities to receive the Peter J. Marshall Innovation Award, Wednesday, during the Association of Municipalities of Ontario’s (AMO) annual conference in Ottawa. The award recognized the Transit Inventory Management Services (TIMS) project — an initiative that involved multiple transit agencies consolidating their parts procurement through a single North American supplier. The new supply model, known as the Vendor Managed Inventory (VMI) model, is expected to reduce administration costs, use economies of scale to save participating municipalities money, increase efficiency and reduce the supply chain’s carbon footprint.

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