Setting Up VMI

This is our third entry into a three part series on Vendor Managed Inventory.

Part 1: Advantages of Vendor Managed Inventory

Part 2: Choosing the Right VMI Supplier

Successful VMI projects are based on a number of key factors: the commitment of senior management (from both customers and suppliers), well‐defined agreements on goals, service levels, and risks, and tight integration with systems. Once all of these elements are in place, it still takes good communication and change management practices to create a successful program.
This guide will take you from the initial meeting to a fully integrated VMI Solution:

• Evaluate
  • Discuss potential impact of the solution.
  • Determine any changes that need to be made.
  • Make sure all parties affected are on board(supply chain, production, procurement, etc).
• Plan
  • Appoint a project manager from each side to act as a point person.
  • Set program goals for what the program.
  • Set an agreed upon schedule.
  • Define the scope.
• Joint Research
  • Agree to the specific products mix.
  • Analyze sales data, usage history, and forecasts
  • Set initial Minimum/Maximum levels.
• Prepare
  • Sign any necessary contracts.
  • Map IT systems (as needed)
  • Lock Go-Live date
  • Complete any physical work as needed
  • Bring all affected parties together for final walkthrough.
• Go-Live
  • Begin supplying of parts.
  • Manage down all existing stock/suppliers.
  • Expect the unexpected, over-prepare for the first three months.
  • Profit.

Martin Fastening Solutions understand what you need from a supply chain partner, and we have experience providing exceptional service to our customers who choose to have us manage their inventory. Learn more about Martin or give us a call to get started today.