Vendor Managed Inventory (VMI)

Collaboration needs to work within the company and through the supply chain in order to maximise inventory optimisation.

Achieving 99%+ service levels without manual intervention

Unlike many VMI solutions, our VMI Replenishment communicates the demand signal to vendors, allowing them to optimise their inventory planning process accordingly. It consistently and automatically delivers up to 99% service levels without manual intervention. It reduces excessive expediting and improves retailer/supplier relationships. It gets replenishment right by responding to the demand signal.

The ToolsGroup SO99+ VMI Replenishment product produces reliable and robust daily forecasts using comprehensive, highly automated, and self-adaptive statistical modelling. It uniquely models demand for each “Ship To” Location and operates on a daily level with a real calendar underneath – differentiating expected demand behaviour depending on the position of the day within the week, and the position of the day within the month.

Then it calculates inventories required to deliver promised customer service levels. Rather than simply replenishing to a fixed inventory target, manufacturers can define service level policies (SLA's) with retailers and dynamically calculate optimal inventory targets they need to meet.

Finally, it automatically generates daily replenishment proposals to meet the target service levels for each SKU-Location. Optimal loads are calculated for each truckload. Multi-tier scalability makes store level replenishment possible if reliable perpetual inventory levels are available. It can simultaneously plan multiple supply chain structures and also dynamically move SKUs from one flow path to an optimal one.