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Summer Newsletter 2009

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

Cutting the Right Costs with Technology

Sourcing Innovation
A recent article in Industry Week, which advocated that you cut the fat, not the limb, reminded us that there are a number of strategic projects, based on appropriate supply chain technology that can provide a far greater internal rate of return than merely slashing costs. Vendor Managed Inventory and longer-term collaborations offer opportunities for both parties….

Buying Replacement Parts – Emerging Trends in the Commercial Vehicle Aftermarket

Fleet Equipment Magazine
In this article, Fleet Equipment magazine identifies six emerging trends in the dynamic commercial vehicle aftermarket. One of these trends deals with utilizing the latest inventory management techniques to manage customers to “lean”. In addition to more prevalent online ordering, many suppliers now offer Vendor Managed Inventory (VMI).

“VMI can automatically generate recommended orders based on mutually agreed upon objectives and information sent by the customer.” (Arvin Meritor)

“VMI is an excellent option for many dealers and distributors as it has the ability to increase inventory turns, reduce customer returns, reduce administrative costs and reduce lost sales.” (Bendix)

“VMI is an opportunity for suppliers to refine inventory control for their distribution channels, and ultimately, lower costs to the end user. We have an ongoing emphasis to continuously improve this channel and streamline the process to make it more effective and responsive.” (Haldex)

EDInomics with Steve Keifer - Vendor Managed Inventory in the Entertainment Industry

Steve Keifer
In the entertainment industry it is common to use a Vendor Managed Inventory (VMI) model in which the supplier (or a designated 3PL) stocks the inventory in the stores. The process works as follows. Each night after the stores close, ...

VMI Press Releases/News

Leviton Targets Vendor Managed Inventory Service to Gain Competitive Edge

Supply & Demand Chain Executive
Electrical products company Leviton Manufacturing has selected a vendor managed inventory solution from VMI specialist Datalliance as a tool to help them run their business more effectively and giving them a competitive edge by creating a collaborative working relationship with key trading partners. "By moving to Datalliance we are gaining a more robust VMI solution that will better serve the needs of our customers," said Mark Richards, Leviton's director of e-commerce. "We also look forward to opportunities to reduce the overall cost and effort of VMI by choosing a more streamlined solution."$11139

Sports Image Selects SPS' Service to Improve VMI Process
Sports Image, a designer and provider of custom decorated apparel and accessories with more than 1,300 retail partners, has selected SPS' Trading Partner Intelligence service to improve its Vendor Managed Inventory (VMI) process...

Kirby Risk Deploys Vendor Managed Inventory Solution

4G Wireless Evolution
Kirby Risk Electrical Supply, a distributor of electrical products to Industrial, OEM, Construction, and Commercial/Institutional markets, has streamlined its central distribution model with the implementation of Datalliance Vendor Managed Inventory (VMI). Joe Hart, Kirby Risk Director of Purchasing and Material Management, said, "Using the right technologies in combination with process improvements creates opportunities for us to improve the efficiency of our supply chain model and reduce costs. Today, many of our leading suppliers including Hubbell, Ideal, Rockwell, Siemens, and Thomas & Betts are using Datalliance VMI. We are also working with other key suppliers to bring up VMI. Eventually we plan to do VMI with 10-14 major suppliers. When we get to that point, 80 percent of our inventory will be managed by VMI.”

DSM Wins Innovation Award for Adoption of VMI
DSM, a global leader in life sciences and material sciences, has used webMethods technology to enable its adoption of Vendor Managed Inventory (VMI), a key initiative under the company’s Vision 2010 strategy.

Siemon Leverages Datalliance VMI Service
The company noted that the first phase of Siemon's VMI program is focused on implementation with Graybar Electric, a top Siemon distributor. Katie Villa, Siemon's Distributor Account Manager, explains the business benefits for both Siemon and Graybar. "VMI gives us the capability to better manage our entire supply chain as we gain a more accurate picture of anticipated demand for Graybar. This helps us better plan everything from production mix to raw materials requirements - aligning our efforts more closely with Graybar demand patterns. With the large number of end items that we supply, VMI helps us address the challenge of having the product configurations that Graybar needs across their 250 locations, when they need them. Graybar and our other major distributors will benefit from increased inventory turns and sales of Siemon products".

Improved Solution to Managing Manufacturing Supplies When Staffs Are Cut

PR Newswire
Atlantic Fasteners, which has offered Vendor Managed Inventory since the early '90's, recently streamlined its Atlantic Inventory Management Service (AIMS), designed for all kinds of items not just fasteners, making it especially attractive to New England firms cutting staff this recession.

LANSA White Paper Tackles Supply Chain Synchronization

IT Jungle
Lansa announced "Supply Chain Synchronization: Recession-proof Strategies for Improving Efficiencies," a new 18-page white paper by industry author Nahid Jilovec that explains what technologies and actions are involved in building a synchronized supply chain. Today, the ideal of a flexible, dynamic supply chain are reflected in terms like Vendor Managed Inventory (VMI) and Collaborate Planning, Forecasting, and Replenishment (CPFR). No matter what you call it, obtaining and maintaining supply chain harmony among all the various participants can be a difficult goal to attain.

World's Largest Paint Company Uses iWay to Optimize B2B Relationships
Atlantic Fasteners, which has offered Vendor Managed Inventory since the early '90's, recently streamlined its Atlantic Inventory Management Service (AIMS), designed for all kinds of items not just fasteners, making it especially attractive to New England firms cutting staff this recession.

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