• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » New Life for Warehouse VMI

New Life for Warehouse VMI

May 29, 2012
SupplyChainBrain

He sees several factors as causing VMI to come back into favor. Retailers are coming to believe that suppliers can do a better job of managing inventory, while understanding the customer's own trends and promotions. A second major reason for the growth of VMI relates to the deployment of manpower, which retailers are seeking to minimize in tough economic times, even as they push more data and responsibility onto suppliers. "Some are welcoming it," says Mayer. "Others are not."

Early VMI programs were characterized by "horror stories" involving organizations overloading distribution centers in order to make their numbers, Mayer says. "They weren't decoupling the demand plan from the revenue plan." In addition, the push for just-in-time fulfillment of orders created performance difficulties in a demanding environment. Today, he says, companies realize the need for at least some buffer stock, which can lead to greater reliance on VMI. One Park City Group client, a food manufacturer, is utilizing VMI to plan all the way back up the supply chain, including raw materials and aluminum cans.

This time around, Mayer says, retailers are approaching VMI "in a much more intelligent way. They're starting to look at the entire integrated supply chain, from scan at register to demand at the warehouse, the supplier's DC and back to demand for raw materials. From farm to fork."

The next logical step after VMI, says Mayer, is store-level ordering. The trend requires strict control of inventory and planning on an individual store basis, as well as the ability to remain flexible as customer buying patterns depart from the forecast. However, Mayer doesn't believe that retailers will ever achieve large volumes of direct-to-store shipments, bypassing DCs, because of receiving limitations at the stores themselves. "It's difficult enough as it is," he says.

To view video in its entirety, click here


Keywords: Food and Beverage, Inventory Planning & Optimization, Retail, CPG, Asset Management, Business Intelligence & Analytics, Business Process Management, Event Management, Forecasting & Demand Planning , Network Design, Product Lifecycle Management, Sales & Operations Planning, Sourcing & Procurement Solutions, Supplier Relationship Management, SC Finance & Revenue Mgmt., SC Planning & Optimization, Supply Chain Visibility, just-in-time fulfillment, store-level ordering

RELATED CONTENT

RELATED VIDEOS

Transportation & Distribution Product Lifecycle Management Sales & Operations Planning Forecasting & Demand Planning Sourcing/Procurement/SRM Supply Chain Finance & Revenue Management Inventory Planning/ Optimization Supply Chain Planning & Optimization Supply Chain Visibility Consumer Packaged Goods Food & Beverage Retail
KEYWORDS Asset Management Business Intelligence & Analytics Business Process Management consumer packaged goods CPG Event Management Food and Beverage Forecasting & Demand Planning Inventory Planning & Optimization Inventory Planning/ Optimization just-in-time fulfillment Network Design Product Lifecycle Management Retail Sales & Operations Planning SC Finance & Revenue Management SC Finance & Revenue Mgmt. SC Planning & Optimization Sourcing & Procurement Solutions Sourcing/Procurement/SCM store-level ordering Supplier Relationship Management Supply Chain Visibility Transportation & Distribution
  • Related Articles

    New Life for Warehouse VMI

    SciQuest Offers Procurement Assessment for Life Sciences

    CombineNet Offers New Capabilities for Electronic Auctions

SupplyChainBrain

Boeing Plans To Cut 2,000 Office Jobs This Year

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A HAND TURNS A LARGE, LIGHTED DIAL WITH THE WORD RISK ON IT iStock-NicoElNino-1364371014.jpg

    Measuring KPIs and KRIs for Comprehensive Supplier Performance Management

    Technology
  • A COMPLEX SERIES OF ROADWAYS AND RAMPS, SEEN FROM HIGH ABOVE, IS PARTLY SHROUDED BY CLOUD

    Supply Chain Visibility Isn’t Just a Catchphrase; It’s an Imperative

    Logistics
  • A WOMAN IN HER LIVING ROOM GESTURES IN DISMAY ON THE PHONE OVER AN OPEN SHIPPING BOX

    Retailers – Quit Bellyaching and Differentiate Yourself on Returns

    Reverse Logistics
  • AN INDUSTRIAL CLAW GRABS SCRAP STEEL FROM A GIANT OUTDOOR PILE OF JUNKpg

    How Manufacturing Companies are Using Recycled Materials In Their Processes and What They're Using

    Sustainability & Corporate Social Responsibility
  • A Mid Adult Male Truck Driver Doing Exercises Before Road Trip by the side of a truck

    Podcast | Yoga for Truck Drivers? It’s a Mother Trucker!

    LTL/Truckload Services

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing