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Inventory replenishment arrangement whereby the supplier either monitors the customer's inventory with own employees or receives stock information from the customer. The vendor then refills the stock automatically, without the customer initiating purchase orders. Collaborative Planning, Forecasting, and Replenishment (CPFR). Vendor managed inventory (VMI) arrangement in which both buyer and supplier share internal information to integrate their plans, forecasts, and delivery schedules to ensure a smooth flow of goods and services as they are needed.
There are many reasons Companies have shifted to using Vendor Managed Inventories.
The reason for this increased interest is twofold. First, global supply chains are considerably more complex than domestic ones, and many companies that are new to global sourcing have elected to delegate this complexity to their suppliers instead of tackling it internally. Second, global supply chains involve longer transit times, which means carrying inventory for longer periods of time, and that's time companies would prefer not to have on their books.
One of the many Companies on the market that offer Vendor Managed Inventory is CEVA Logistics. CEVA Logistics have the following to offer their clients. The VMI solution in CEVA Logistic is the transition to a new supply chain model entails a change in the physical flow of goods, replenishment processes and data transfer:
Describe the benefits that can be gained by entering into a VMI arrangement. Listed below are a few of the benefits offered by many VMI Companies.
Collaborative Planning in Terms of Globalization. (2020, Jun 01). Retrieved from https://studymoose.com/collaborative-planning-in-terms-of-globalization-essay
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