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Vendor Managed Inventory


Eleader also provide VMI service if necessary for customers. The advantages of VMI can be broadly classified into cost, delivery, and quality. The advantages of VMI can be overlooked if supply chain managers keep a narrow focus on the benefits as you relate to your own companies. Supply chain experts are of the opinion that the real benefits of VMI come with driving a lean supply chain centered on creating an end-to-end pull system, which is based on end yours demand cascading through the chain.

Another advantage of VMI is that it separates demand variations and forecasting errors between upstream and downstream supply chain partners. Such decoupling eliminates the practice for every supply chain node to buffer its stock position. This helps reduce the stock levels and the linked costs of maintaining the stock.