inventory by suppliers instead of manufacturers, applying
the expert service of a 3rd party logistics service provider,
VMI is a streamline approach to inventory and order fulfillment.
the right product at the right time
submit inventory and demand data to the VMI system via EDI.
Through the Min/Max function, the system generates a demand
forecast. Via the information on the web, daily reports
or email transmissions, suppliers can monitor the inventory
and ensure inventory is kept at a safety level. With the
VMI system, manufacturers benefit from smoother manufacturing
cycles and optimized resource allocation.
convert the transaction requirements of Ex Works, FOB, FIB,
DDU, etc. into Ex Hub, i.e. the transaction requirements
of a VMI hub. The goods are stored in the VMI hub and belong
to the suppliers when they are not required by the manufacturers.
Therefore, manufacturers can keep inventory as low as zero
level and enjoy improved financial results.
party logistics support
receiving requisitions from manufacturers via EDI or email
transmissions, the VMI hub takes the responsibilities of
preparing invoices, picking & packing and delivery.
The process is completed efficiently with minimal input
from the trading partners, thus eliminating the complicated
transactions among different departments of suppliers and
requirements of different manufacturers.
after goods arrived
receipt of goods, the manufacturer will send confirmation
to the accounting staff of the VMI hub. After that, the
accounting staff will update the VMI system and notify the
supplier and arrange invoice.