Vendor Managed Inventory (VMI)
The solution proven to drive real supply chain value. Get ready to take your business to new heights!
What Is Vendor Managed Inventory?
Think: Increased Sales, Reduced Costs, and Improved Customer Satisfaction.
Vendor managed inventory (VMI) is a setup in which a vendor and a customer agree to put the vendor in charge of optimizing the customer’s stock. Customers share all of their data with the vendor in real-time to improve visibility and forecasting.
A demand-driven solution that lowers safety stock levels and cuts down on stockouts
A strategic partnership that maintains the correct flow of inventory in your supply chain
A win-win setup that allows vendors to stay focused on inventory goals and customers to stay focused on their customer service and brand loyalty
Do You Need VMI?
How effective is your current inventory management?
Our VMI experts created this assessment tool to help you identify your inventory management challenges and find out whether Vendor Managed Inventory is the best solution for your organization.
What Makes a Vendor Managed Inventory System Successful?
Clear Spider is recognized as the #1 Cloud-Based Inventory Management Software because our solutions consistently improve the way that companies manage their inventory. Used by countless leading companies in a wide variety of industries, Clear Spider’s Vendor Managed Inventory System has proven it will increase supply chain performance and reduce costs.
Our VMI experts credit the success of a VMI setup to 3 key components:
Automatically generate a new purchase order (PO) each time a customer’s stock levels reach their preset reorder points. This reduces the replenishment response time, labour costs and data entry errors that often come with manual POs.
Enhanced Data Sharing
With a VMI setup, vendors gain access to their customers’ historical data which gives them greater insight into market trends. By way of improved forecasting, vendors simply adjust their fulfillment schedules to match changes in demand.
Real-Time Performance Monitoring
Real-time updates on stock levels at customer sites give vendors the control they need to make better plans for their manufacturing and distribution. As a result, better visibility takes the guesswork out of keeping their customers in stock.
Vendor Managed Inventory Example
This diagram shows how the 3 key components work together in a successful VMI setup.
Increase Visibility and Reduce Costs
Data-driven decisions save time and cut costs. A VMI system increases the vendor’s visibility to give them more insight into market trends. Then, as a result, the vendor makes more accurate predictions about changes in demand. Ultimately, the vendor can more easily adjust their production and distribution plans to meet the demand. You never have to worry about your customers having too much, or too little, stock. Simply reduce the cost of stock errors by knowing exactly where your inventory is in the supply chain in real-time.
Benefits of Vendor Managed Inventory
Vendors and customers that choose to enter into a VMI relationship gain the competitive advantages offered by a VMI system. Relieve the stress caused by poorly managed inventory with these proven benefits:
Greater Visibility and Control
With 24/7 access to real-time updates,Vendors are always aware of the stock that their customers have on-hand without needing employees to be present at customer sites
Increased Profit and Productivity
Lean manufacturing ensures customers will always be ready with the right products on-hand, to cut down on the cost of returns of overstock
Stronger Customer Relationships
Vendors become high-value suppliers that reduce their customer’s uncertainty by making sure that they always have the inventory they need
Accurate Order Processing
Purchase orders are made automatically based on inventory level minimums, maximums, and reorder points, to reduce the cost of data entry errors
Highly Responsive Supply Chain
Insight into market trends shortens lead times, lowers safety stock levels, and supports more flexible production and distribution plans
With direct access to historical and real-time data, vendors will predict and be prepared to meet their customers’ needs, reducing stockouts and costly expedited shipments
Clear Spider VMI Features Designed to Help Your Business Thrive
Speed up your order processing with Clear Spider’s re-plan engine. Our system automatically creates new purchase orders with the quantities needed to keep your customers in stock. Learn More
Optimize your inventory management by integrating Clear Spider’s system with any of your software on the cloud. This lets you set up a seamless flow of data that gives you quick access to the most current updates. Learn More
Reporting and Analytics
Monitor performance by running monthly and yearly comparisons for your team to analyze. In addition, a variety of graphs and charts can be exported in Excel and XML formats for your team’s use when it’s time to make key decisions. Learn More
Customizable User Access
Control the level of access granted to each user so that their operational needs are met. This helps to balance visibility and security by having the option to make data private, or to allow access to the most appropriate users. Learn More
Consignment & Fulfillment Capabilities
Clear Spider’s system sends you real-time updates at each stage of fulfillment, from your own warehouse to the customer sites. This increase in visibility makes it easy to track your consignment and non-consignment inventory in the same system. Learn More
Make your data entry process simpler to save you time and cut costs. Clear Spider’s mobile app lets you scan items and record transactions with your smartphone camera. Learn More
Industry Leaders that Trust Clear Spider VMI Solutions
How to Choose the Best VMI System for Your Business
The best VMI software for your business is the one that will meet all your business’s needs. Choosing the right system is the first step you will take towards getting the results that will give you a high return on your investment.
To make this choice easier for you, we’ve curated a list of qualities to look for in an ideal VMI system: