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    Vmi and CPFR

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    safdar
    The document discusses vendor managed inventory (VMI) where suppliers generate replenishment orders for customers based on demand information sent by customers. The goal of VMI is to align business objectives and streamline supply chain operations through increased information sharing between suppliers and customers. Benefits include improved inventory turns, service levels, and sales. VMI links suppliers directly to customer demand information which is a critical element of demand-driven supply chain management.

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    Vmi and CPFR

    Uploaded by

    safdar
    57 views2 pages
    The document discusses vendor managed inventory (VMI) where suppliers generate replenishment orders for customers based on demand information sent by customers. The goal of VMI is to align business objectives and streamline supply chain operations through increased information sharing between suppliers and customers. Benefits include improved inventory turns, service levels, and sales. VMI links suppliers directly to customer demand information which is a critical element of demand-driven supply chain management.

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    vmi and CPFR

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    The document discusses vendor managed inventory (VMI) where suppliers generate replenishment orders for customers based on demand information sent by customers. The goal of VMI is to align business objectives and streamline supply chain operations through increased information sharing between suppliers and customers. Benefits include improved inventory turns, service levels, and sales. VMI links suppliers directly to customer demand information which is a critical element of demand-driven supply chain management.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    57 views2 pages

    Vmi and CPFR

    Uploaded by

    safdar
    The document discusses vendor managed inventory (VMI) where suppliers generate replenishment orders for customers based on demand information sent by customers. The goal of VMI is to align business objectives and streamline supply chain operations through increased information sharing between suppliers and customers. Benefits include improved inventory turns, service levels, and sales. VMI links suppliers directly to customer demand information which is a critical element of demand-driven supply chain management.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Submit to.

    Sohail Majeed
    Class.Supply Chain Management(Fri 6:30)
    Submit from. Safdar Bin Zafar(2822)

    VENDOR MANAGEMENT INVETORY

    VMI is a process where the supplier generates orders for the customer based on demand
    information sent by the customer. Instead of sending purchase orders, customers electronically send
    daily demand information to the supplier. The supplier generates replenishment orders for the
    customer based on this demand information. During this process the supplier is guided by mutually
    agreed to objectives for inventory levels, fill rates and transaction costs.

    The goal of VMI is to align business objectives and streamline supply chain operations for both
    suppliers and their customers. The business value is a direct result of increased information flow:

     Improved Inventory Turns


     Improved Service
     Increased Sales

    Benefits The process laid out above is not significantly different from the standard practice today.
    So, what.s the big deal? Why is this better than the customer ordering themselves? To understand
    why, let.s look at each benefit advertised by the parties doing VMI.

    Critical Element Leading manufacturers are striving to become more responsive to customer
    demand across a wide range of products without the need for tremendous amounts of inventory.
    Many companies are working to develop demand-driven supply networks where they have the ability
    to quickly 'sense and respond' to actual demand. Some are even using this approach to 'shape'
    demand based on continuous visibility of market activity.
    VMI links a supplier directly to actual customer demand. In the transformation from a 'push'
    approach to supply chain management to a demand-driven 'pull' approach, unfiltered demand
    signals are a critical element. VMI provides those signals. With VMI, the right products are
    continually pulled into the right places at the right time with continuous replenishment at the point
    of consumer purchase or usage. This fundamental pull process combined with the market visibility it
    provides makes VMI an indispensable element of any company's demand-driven supply chain
    program.
    Submit to.Sohail Majeed
    Class.Supply Chain Management(Fri 6:30)
    Submit from. Safdar Bin Zafar(2822)

    Collaborative Planning, Forecasting and Replenishment (CPFR)

    CPFR is a business practice that combines the intelligence of multiple trading partners in
    the planning and fulfillment of customer demand. Links sales and marketing best practices
    to supply chain planning and execution processes. Objective is to increase availability to the
    customer while reducing inventory, transportation and logistics costs

    CPFR Benefits

     Implicitly, CPFR strengthens an existing relationship and substantially accelerates


    the growth of a new one.
     Buyer and seller work hand-in-hand from inception through fruition on business
    plan, base, and promotional forecasts.
     Continual CPFR meetings strengthen this relationship.
     The close collaboration needed for CPFR implementation drives the planning for
    an improved business plan between buyer and seller.
     CPFR enables a time-phased order forecast that provides additional information,
    greater lead time for production planning, and improved forecast accuracy vs.
    either stand-alone VMI/CRP or other industry tools.
     CPFR enables a time-phased order forecast that provides additional information,
    greater lead time for production planning, and improved forecast accuracy vs.
    either stand-alone VMI/CRP or other industry tools.
     With fewer out-of-stocks resulting from better planning information, higher store
    service levels will prevail, offering greater consumer satisfaction.

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