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Summer Newsletter 2012

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

How Distributors Can Improve Relationships with Value-Added Services

Derek Singleton, Software Advice
Since Walmart and Proctor & Gamble first introduced the concept of vendor managed inventory (VMI) in the 1980’s, it’s become a popular method of inventory control for industries, that prefer just-in-time deliveries. Under a vendor managed inventory system, the distributor agrees to monitor customer inventory and suggest proper purchase times. It’s a model best suited for high frequency, low volume transactions but one that is gaining popularity in lower product value industries (e.g. wireless phones and accessories).

Research on IPID Optimization Methods under Vendor-Managed Inventory Policies

In this paper, a complex Integrated Production Inventory Distribution Problem (IPID) is considered where vendor produces items, and then shipping to a set of customers via third party logistics. Modeling proposed in this paper is based on Vendor-Managed Inventory (VMI) policies, under which policy; distortion of demand information (known as bullwhip effect) transfer from the downstream supply-chain member to the upstream member is minimized.

VMI…Is it Right for You?

USAID Deliver Project
As governments and implementation partners help support health delivery and health systems in developing countries, they are beginning to appreciate the importance of supply chain management and supply chain capability. However, before they attempt to build a supply chain, planners must know what supply system designs and frameworks are available. One supply chain model that may hold promise for developing country health supply chains is vendor managed inventory (VMI).

Vendor Managed Inventory – What is it and when does it make sense to use it?

Dave Piasecki

Optical supply chain for telecommunications becomes more on-demand

Sinclair Vass, JDSU
The main challenge for carriers and network equipment manufacturers (NEMs) has not been the recent growth in bandwidth demand itself, but the fact that the growth has come in fits and spurts – making forecasting unpredictable at best. As a result, many in the optics industry have begun to adopt an on-demand supply chain model, with widespread adoption of vendor managed inventory (VMI) methods or other demand-pull systems.

VMI Press Releases/News

Datalliance Joins the Discussion About Reducing Cost of the Healthcare Supply Chain

As the leading independent provider of Vendor Managed Inventory (VMI) platform services across a wide range of consumer and industrial supply chains, Datalliance is committed to working with the healthcare industry to help reduce costs. Datalliance sees great potential for both healthcare suppliers and providers to gain the same benefits other industries are realizing today through VMI relationships -- reduced inventory, better availability, and lower inventory management costs.
Datalliance is already working directly with a number of forward-thinking Medical Device and Physician Preferred Item (PPI) suppliers along with their healthcare provider partners on pilot projects to define and implement VMI relationships.

Siemens Industry and Viking Electric Collaborate to Improve Performance

As part of their High Value Partner program, Siemens is committed to working more collaboratively with key distributors, such as Viking Electric, to better manage inventory through their Inventory Collaboration Program (ICP). Siemens uses Datalliance Vendor Managed Inventory as the solution foundation for their ICP. Viking Electric is a key wholesale distributor for Siemens, serving the electrical industry in the Upper Midwest with 24 locations in Wisconsin and Minnesota.

Hubbell Expands Collaborative Commerce Program With Datalliance Vendor Managed Inventory Service

Steve Antenucci, Senior VP of Sales, Hubbell Electrical Systems, stated, "VMI is the technology that connects us, one-to-one, with our trading partners. It facilitates a more collaborative relationship between our customers and the Hubbell e-Commerce group." 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.

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