The primary goal of a vendor managed inventory system is to develop a relationship where both sides are mutually benefited. Ultimately, both sides will run smoothly and accurately and work together to control the flow and availability of goods. The customer and supplier both benefit from a vendor managed inventory system when they work together to develop a workable system. Here are three tips for both sides to ensure it works like it’s supposed to with the desired outcome.
Making Vendor Managed Inventory Work
- Clear expectations. Be sure to thoroughly discuss how the inventory system will benefit all parties. The supplier is usually more prone to being disappointed by short-term results. Address long-term and short-term results to make sure both sides have realistic expectations. The goal is open, clear and constant communication between the customer and supplier.
- Discuss how information will be shared. Both customer and supplier should agree on sharing information related to restocking so it can be done in a timely manner. This drastically improves the odds of maintaining a synchronized system. Proprietary information will not be shared between the supplier and customer but just enough information to ensure a steady flow of goods.
- Communication should be kept open. When two parties are implementing a vendor managed inventory system, they should discuss goals and processes needed to reach those goals. Once the program is activated, there will likely be a few miscues. View these as opportunities to learn and avoid repeating the problems later on.
Are you ready to invest in a successful vendor managed inventory system? Visit the Demand Solutions website for more benefits and strategies to make it work.