If you are new to warehouse management systems, you might want to read our introduction to WMS. In this example, we’re going to talk about Latitude WMS, because, well, it’s our product and we understand how it works. VMI may be included as a part of a warehouse management system (WMS). If you’ve ever worked in distribution, you know that there are countless ways to waste time and money when placing customer orders. VMI is a way to streamline the process so that replenishment orders can be placed quickly, efficiently, and without costly errors. What if Jean’s handwriting is bad enough that Martha misreads the Lo-Flo 6722 and orders a Lo-Flo 6522 instead? Take the toilet model numbers, for instance. Not only is this inefficient, it’s very prone to mistakes.ĭuring a simple order like this one, there are any number of times that human-introduced error could have resulted in lost time and money. This entire process probably took a couple of days. Martha enters the order into the system first thing the next morning, and the order is picked and shipped to Toilets R Us 24 hours later. Back at your distribution DC, Jean gives the toilet model numbers, order quantities, and customer information to Martha, who manages your ERP.Jean writes this down in a notebook and heads back to your headquarters. It turns out that Toilets R Us is also in need of some more Lo-Flo 6722s. Jean hands over some new product brochures, and checks to see what other toilets might need to be re-ordered. Jean arrives later that day at Toilets R Us and spends some time talking with Pat.Jean offers to come out to the Toilets R Us warehouse. Pat explains that Toilets R Us needs to reorder the UltraMega Flush5000. Later in the day, Pat calls your sales department and speaks to Jean, your salesperson.Pat (the manager) is notified and writes down the product name on a piece of paper. Your customer, Toilets R Us, realizes that they are running low on the UltraMega Flush5000 model.The normal process for re-ordering might go something like this: Your customers regularly place orders for your goods through your sales team, either in person or over the phone. Imagine that you are a distributor of toilets. Vendor managed inventory is a simple way of creating replenishment orders for a distributor’s products. Rather than making phone calls or ordering using a web form, the customer can use a barcode scanner to scan the items, enter a quantity, and then send the order (via Wifi or cll network) through the barcode scanner to their vendor.Įasy, right? Read on to find out more about how VMI works. VMI is system that allows customers to quickly place a replenishment order for goods. VMI stands for “vendor managed inventory” (also known as “customer managed inventory”). But what is VMI, and how does VMI work? Quick Answer – What is VMI? VMI systems are a hot topic in the supply distribution world right now.
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