Vendor Managed Inventory (VMI)

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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.

“The flexibility of consultants during all this change was world-class … So far this project has gone far better than we ever could have imagined … We’ve actually managed to grow our revenue and reduce our inventory costs, so I’m very pleased.”
- Chris Clowes, Supply Chain Manager, Costa Express
"Brookes Retail has proven to be an ideal partner in helping O2 plan a supply chain that can respond to changes in demand"
- David Flaxten, Demand Planning Manager, O2 UK

Brookes Supply Chain Solutions

use collaborative data from multiple sources for more accurate demand forecasting
optimise in-store and warehouse inventory levels to reduce inventory costs
improve demand forecast accuracy using signals from data and AI, including seasonal variations, long tail and intermittent demand products
reduce out-of-stocks and increase on-shelf availability

About Brookes Supply Chain Solutions

Brookes Supply Chain Solutions, the official UK distributor of ToolsGroup SO99+ supply chain software, brings together the best supply chain people, processes and technology to create sophisticated, highly automated demand-driven solutions which deliver measurable and sustainable business value.

We offer market leading consultancy, software and managed services for inventory optimisation, demand forecasting and product replenishment planning.

We understand the challenges enterprises face in a digital economy with high customer service and investor performance expectations.


Related Resources

NHS Blood  and Transplant case study

NHSBT’s new Planning and Control System, powered by SO99+, and is being used to forecast demand at blood product, type and group level on a hospital-by-hospital basis. 

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SO99+ Vendor Managed Inventory executive brief

ToolsGroup offers a demand-driven statistical VMI replenishment engine that  both manages and optimises the VMI inventory planning process.

Read more >

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