How to Use this Slide Deck
Personalization
•
•
Any time the word “supplier” is used, think about
adding your company name/logo
Personalize you goals/statistics for the program in
slides with a green border, then delete the border
Vendor Managed
Inventory
Leveraging Greater Information Sharing to Reduce Supply Chain
Costs, Improve Sales, and Increase Customer Satisfaction
Vendor Managed Inventory is the process
where the supplier generates orders based on
mutually agreed objectives and demand
information sent by the customer.
Executive Summary
 The internet has made sharing data
easier, increasing the flow of data within
and between organizations
 Effective supply chains leverage
information from as much of the chain
as possible
 Sellers need to be more closely aligned
with distributors, creating a seamless
buying process
 There is an opportunity to turn Supply
Chain into a revenue driver rather than
a cost center
 Datalliance VMI provides a dramatic
ROI: many benefits, low risk, modest
investment
Distributor Quote
3
The Problem
 The distributor and supplier have different sets of
information
 Both spend time and money trying to predict what the
other will do
DISTRIBUTOR
SUPPLIER
SALES
PROMOTION
PUTAWAY
LEADTIME
EVENTS
PACKAGE SIZES
INVENTORY
ITEM NUMBERS
The Solution
 Communicate between supplier and distributor to create
better orders and smoother demand pattern
 Tighten relationship and align business goals
 Increase visibility throughout supply chain to enable
better resource planning
 Use cloud-based solution to eliminate hardware costs
DISTRIBUTOR
SUPPLIER
Increase Customer Satisfaction
 Both immediate and end customer
 Reduces distributor effort to order, the right product
shows up on time
 Increases brand loyalty, ease of ordering differentiating
factor
 Products on shelf more often for end customer
Productivity
Reworked Orders
VMI
Non VMI
Need Rework
5%
Need
Rework
40%
Datalliance Customer Analysis
88%
Enter your metrics then delete this bar
The Value of Collaboration
Average Location
Distributor In
Stock %
Number of SKUs
Stocked
Weekly Sales
Traditional
Replenishment
97%
300
$20,742
After One Year of
VMI
98%
318
$26,456
Source: actual data from software
vendor
 Using more data allows for a higher in stock
percentage
 Greater customer service encourages Distributor to
stock more items
 These factor combine to increase sales
Leveraging Expansion
 The Datalliance fee structure means program expansion
decreases costs for each Distributor
Price per Distributor
One Distributor
Two Distributors
Three Distributors
Cost Per Distributor
Four Distributors
Adjust this slide for your situation and then delete this bar
Program Expansion Benefits









Increased collaboration with key Distributors
Smoother, more predictable demand pattern
Fewer reworked orders
Better customer service
Increased brand loyalty
Improved downstream visibility
Free sales force time for selling
Amortize fixed costs across greater Distributor base
Turn supply chain into a revenue driver