The characteristics of VMI material warehouse
Collaborative strategy: VMI material warehouse is a collaborative strategy between users and suppliers aimed at optimizing product availability at the lowest cost. Ownership: The ownership of materials in the VMI material warehouse belongs to the supplier or intermediary, and the supplier fully manages and owns the inventory until the retailer sells it. Management function: Although property rights have not been transferred, the management of materials is only in the form of custody, and is entrusted to the enterprise or a warehouse designated by the enterprise for safekeeping. Accounting period calculation: The accounting period of materials in the warehouse starts from the time the enterprise uses the materials, or is agreed upon in advance by the supplier and the enterprise in the contract. |
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The advantages of VMI material warehouse
Reducing inventory risk: By managing inventory through suppliers, enterprises can reduce inventory risk and improve inventory turnover efficiency. Improving procurement cycle: The operation of VMI material warehouse can shorten the procurement cycle and improve the response speed of the supply chain. Improving transparency: The implementation of VMI material warehouses can enhance the transparency of inventory and demand, which is beneficial for the optimization and collaboration of the supply chain. Cost reduction: By identifying the status of material configuration, production and procurement bottlenecks can be resolved in advance, reducing supply chain management costs. Strengthening cooperative relationships: VMI material warehouses tightly bind enterprises with upstream enterprises in the supply chain, strengthening the cooperative relationships between enterprises. |
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