How to Grow the VMI Program Identifying and Engaging Distributor Partners Agenda What is VMI? Building a Program Road Map Engaging Prospective Partners Take Aways Confidential Datalliance 2 What is Vendor Managed Inventory? Confidential Datalliance 3 Vendor Managed Inventory is the process where the supplier generates orders based on mutually agreed objectives and demand information sent by the customer. Confidential Datalliance 4 Enhanced Collaboration Better Transportation Utilization Less Rework Increased Efficiency! Improved Product Mix Eliminate Emergencies Clearer Demand Visibility Confidential Datalliance 5 Building a Program Road Map Confidential Datalliance 6 Corporate Goals VMI Goals Partner Profile Tactical Plan Confidential Datalliance 7 This is a list of common corporate goals. Please edit to match the goals of your organization Corporate Goals Strengthen distributor relationships Increase market share Better manage product lifecycle transitions Minimize returns exposure Cleaner / more efficient orders Improve in stock levels Reduce transactions costs Grow sales Increase profitabit Confidential Datalliance 8 Corporate Goals VMI Goals Partner Profile Tactical Plan Confidential Datalliance 9 This is a list of common VMI goals. Please edit to match the goals of your organization. These goals should be specific and have time component. If you have questions please contact Datalliance for help VMI Goals A certain percentage of VIP distributors ordering through VMI A certain percentage of sales through VMI Reduce emergency orders Add by a certain percent a certain number of distributors Confidential Datalliance 10 Corporate Goals VMI Goals Partner Profile Tactical Plan Confidential Datalliance 11 With exception of the first bullet and sub bullet, this is a list of common factors in a VMI Partner Profile. Please edit to match the profile of your organization. Do not change the first bullet and the first sub bullet, these are required for Datalliance VMI. VMI Partner Profile Technical Preferences Strategic Preferences Minimum Technical Minimum Sales Capability Requirements Provide daily product activity (852), receive PO Acknowledgement (855), provide sales history (52 weeks) EDI or flat file EDI or e-Commerce Preferred Threshold Core SKUs Stocked DC or Store replenishment Distributor commitment / trust Fixable issues Growth potential ERP system Datalliance Partners Preferred! Confidential Datalliance 12 Corporate Goals VMI Goals Partner Profile Tactical Plan Confidential Datalliance 13 This is a list of common plan components of successful Datalliance customers. Please edit to match the goals of your organization Tactical Plan Number Expect implementation to take two to three months Number List of new partners a year of implementations occurring simultaneously of distributors Partner profile Datalliance partners – low hanging fruit Sales staff recommendations Interested distributors Prioritize the list Growth potential Fixable issues Confidential Datalliance 14 Engaging Prospective Partners Confidential Datalliance 15 Engaging Partners Who? How? Platinum Rule… “Do For Others As They Would Do For Themselves” Why? Sales, Customer Service, VMI Leader, All Vision of Mutual Success… Give + Get When? Sequencing New Partner Onboarding Confidential Datalliance 16 “Vendor Managed Inventory is the process where the supplier generates orders based on mutually agreed objectives and demand information sent by the customer.” VMI: “Mutually Agreed” SPECIFIC OBJECTIVES • • • • • DETAILED DISCUSSIONS • • • • • Improve in-stock levels Increase inventory turns Reduce transaction cost Grow sales Better product assortment DC or branch dist. model Order frequency Freight parameters Pricing / data sync Returns / new products Align Business Goals - Transparency Confidential Datalliance 17 Typical Engagement Process 1) Identify distributor that fits VMI profile 2) Confirm distributor can meet the functionality requirements for VMI 3) Discuss the mutual benefits VMI can provide for this partnership 4) Approach Program Manager for approval and support 5) Hold a Kick-off Call with Datalliance Confidential Datalliance 18 Take Aways Confidential Datalliance 19 Please add your company’s logo Take Aways Successful partnerships rely on trust Corporate goals should drive VMI goals VMI programs grow smoothly when they are planned out A partner profile makes selecting distributors easier Effective distributor engagement uses a defined process Datalliance can help with any step Confidential Datalliance 20