The basic concept of the Drummer VMI is to share information related to stock availabilities, in transit quantities and consumption of products, between your company and each of your customers and suppliers, so that you can dramatically decrease the response time to replenish the inventory levels. In this model, your company is responsible to manage both inventory levels and replenishment needs, for each customer or supplier that are under this control. Through a daily processing, consumption history for each product at each customer is reassessed and actions to replenish stock and review the ideal level are automatically suggested by the system.
Some functionalities of the Drummer VMI:
Automatic Inventory Replenishment
Starting from stock levels and sales history information, the Drummer VMI suggests stock replenishment orders to customers in a daily basis. These suggested orders are then transferred to the company’s ERP according to criteria established by the user: minimum value, distance, etc.
Dynamic Buffering Management (Ideal Inventory Levels)
Another important feature of the Drummer VMI is the periodic reassessment of the stock levels once any increase in sales can exhaust the safety stock or, conversely, leads to an unnecessary stock level.
Sales Promotion / Seazonality Management
Besides projecting future demands based on the sales history per product, the Drummer VMI also deals with specific conditions as sales promotion and/or seasonality that are taken into account during the dynamic buffering review.
Some benefits of the Drummer VMI:
nventory Reduction
The frequent exchange of data allows the stock to be replenished more in accordance to the demand, resulting in a decrease in the safety levels.
Stockout Reduction
The daily reassessment of the stock levels minimizes stock-outs and results in an increase in both sales and customer satisfaction.
Operation / Transport Costs Reduction
The improvement in the planning process results in a more stabilized production schedule, dramatically reducing the need to expedite orders.
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