Spring Newsletter 2008

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!


Vendor Managed Inventory
QuickMBA Website
Some firms have successfully improved their supply chain performance by implementing an approach known as Vendor Managed Inventory (VMI). This article outlines the business benefits of VMI, implementation challenges, and tactics for addressing the challenges…

What is Vendor Managed Inventory?
12MANAGE – The Executive Fast Track Website
This article explains the VMI, steps in the VMI process, origin or VMI, and the benefits for all parties (Supply Chain, suppliers, distributors, and end-users).

Vendor Managed Inventory (VMI): Three Steps in Making It Work
Scott Frahm, SCRC
The goal of Vendor Managed Inventory is to provide a mutually beneficial relationship where both sides will be able to more smoothly and accurately control the availability and flow of goods. The following topics are covered:

  • VMI description
  • Customer Benefits
  • Supplier Benefits
  • How to Make VMI Work
  • Common Mistakes

Lean Manufacturing and the ERP Inventory
By kumiko(kumiko)
Regarding supply and demand chains, inventory management through ERP software is able to review key time-critical data to balance the time phasing requirements of materials, parts, and tools. That is to say, with a robust ERP manufacturing solution, inventory managers are in the position to make informed decisions concerning demand chains and supply chains. This is especially true in the newly emerging vendor managed inventory systems (VMI) that are increasingly seen as the logical extension of lean manufacturing methods and JIT inventory management.

Supply Chain News: Predictions for 2008 from AMR Research
Supply Chain Digest
…users still prefer best-of-breed solutions – either packaged or custom-built – in areas like transportation management, warehouse management, and network design, as well as for collaborative processes such as Vendor Managed Inventory (VMI) that extend outside of the four walls of the enterprise.

Lean Manufacturing: Losing Weight Through VMI
By Shailesh Mishra
On the other hand, most of the brand owners and buyers are moving towards a concept called VMI or vendor managed inventory. Basic principle of VMI is managing inventory by the vendor on the behalf of the buyer...

Six Steps to a Successful VMI System
By Shailesh Mishra
This article outlines the six key steps to ensure a successful VMI implementation…

Small EMS Provider Faces the Same Strategic Sourcing Challenges as the Big Firms - Newton,MA,USA
Eastek tries to reduce costs with other supplier-facing strategies. For example it has used some vendor managed inventory (VMI) programs such as bonded inventory with its key suppliers. "Our VMI programs reduce our liabilities," Sabharwal says. "We give them the forecast and adjust the...

Supply Chains Demand More Than ERP
Written by Helle Skøtt and Evi Larsen
Supply Chains Demand More than ERP, using concrete case study references, defines the three requirements for successful supply chain collaboration. It demonstrates why ERP systems cannot accomplish the task alone and illustrates the benefits that can be achieved when 3rd party collaboration solutions complete the functionality of ERP systems to get the job done.

Press Releases

Datalliance VMI Grows in Auto Industry
Business Wire (press release) - San Francisco,CA,USA
CINCINNATI--(BUSINESS WIRE)--In a recent article in Aftermarket Business, Vendor Managed Inventory (VMI) was identified as a growing practice in the auto ...

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