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
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What is Vendor Managed
Inventory?
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Vendor Managed Inventory
is the process where
the supplier generates orders
based on mutually agreed
objectives and demand information
sent by the customer.
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Enhanced Collaboration
Better
Transportation
Utilization
Less Rework
Increased Efficiency!
Improved
Product Mix
Eliminate
Emergencies
Clearer Demand
Visibility
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Building a Program Road Map
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Corporate
Goals
VMI
Goals
Partner
Profile
Tactical
Plan
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This is a list of common corporate goals. Please edit to match the goals of your organization
Corporate Goals

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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
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Corporate
Goals
VMI
Goals
Partner
Profile
Tactical
Plan
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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
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Corporate
Goals
VMI
Goals
Partner
Profile
Tactical
Plan
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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!
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Corporate
Goals
VMI
Goals
Partner
Profile
Tactical
Plan
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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
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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
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Engaging Prospective Partners
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Engaging Partners

Who?


How?
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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
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“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
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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
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Take Aways
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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
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