How to Use this Slide Deck
Personalization
•
•
Any time the word “supplier” is used, think about
adding your company name/logo
Personalize you goals for the program in slides
with a green border, then delete the border
Confidential Datalliance
1
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.
Confidential Datalliance
2
Enter your company name in place of “supplier” Then delete this bar
Agenda
What is VMI?
Why is supplier doing VMI?
Why is VMI good for Sales?
Why should a distributor
join our program?
Who makes a good partner?
Confidential Datalliance
3
What is Vendor Managed
Inventory?
Confidential Datalliance
4
Enter your company name in place of “supplier” then delete this bar
Vendor Managed Inventory
is the process where
supplier generates orders
based on mutually agreed objectives
and demand information
sent by the customer.
Confidential Datalliance
5
Enhanced Collaboration
Better
Transportation
Utilization
Less Rework
Increased Efficiency!
Improved
Product Mix
Eliminate
Emergencies
Clearer Demand
Visibility
Confidential Datalliance
6
Enter your company name in place of “supplier” then delete this bar
Datalliance VMI Process
PRODUCT ACTIVITY
DISTRIBUTOR
REVIEW
DATALLIANCE
P.O. ACKNOWLEDGMENT
Confidential Datalliance
SUPPLIER
PURCHASE ORDER
7
Enter your company Logo in place of “supplier logo” then delete this bar
Supported Market Leaders
Manufacturers
Distributors
Supplier
Logo
Confidential Datalliance
8
Why VMI?
Confidential Datalliance
9
DISTRIBUTOR
SALES
PUTAWAY
EVENTS
INVENTORY
Confidential Datalliance
10
DISTRIBUTOR
SALES
PUTAWAY
EVENTS
INVENTORY
ORDERS
Confidential Datalliance
11
DISTRIBUTOR
SUPPLIER
SUPPLIER
ITEM
PACKAGE
NUMBERS
PROMOTION
LEADTIME
SIZES
ORDERS
Confidential Datalliance
12
DISTRIBUTOR
SUPPLIER
SALES
PROMOTION
PUTAWAY
LEADTIME
EVENTS
PACKAGE SIZES
INVENTORY
ITEM NUMBERS
ORDERS
Confidential Datalliance
13
DISTRIBUTOR
SUPPLIER
SALES
PROMOTION
PUTAWAY
LEADTIME
EVENTS
PACKAGE SIZES
INVENTORY
ITEM NUMBERS
BETTER
ORDERS
Confidential Datalliance
14
Manufacturer Benefits
Efficient in-stock levels
- scheduled and repetitive ordering, optimized inventory
Demand Visibility
- supply chain insight, reduce return exposure, product life cycle
Customer Support
- wholesaler collaboration, grow market share, differentiate
GROW SALES
Confidential Datalliance
15
Enter your company name in place of “supplier” and enter your goals then delete this bar
Supplier
Business Goals
Grow Sales
Decrease Costs
Improve Productivity
Improve Customer Satisfaction
Increase Profitability
Confidential Datalliance
16
Enter your company name in place of “supplier” and enter your numbers then delete this bar
Benefits of Supplier VMI
Out of Stocks
Turns Up
Sales Increase
31% 25% 24%
Confidential Datalliance
17
Sales Rep Benefits
Easier to Manage Relationship
- scheduled and repetitive ordering, previously agreed upon pricing
Customer Support
- Differentiate, strengthens relationship with key accounts
More Time with Opportunities
- VMI Accounts require less intervention, allowing Sales to focus on
more labor intensive opportunities
Confidential Datalliance
18
Growing VMI
Confidential Datalliance
19
Distributor Benefits
Improve inventory turnover
- better cash flow, product mix
Increase availability levels
- wholesaler in-stock to meet demand, reduce stock outs
Collaborative supply chain
- communication, vendor’s commitment to partner goals
SERVICE & SUPPORT
Confidential Datalliance
20
Easy Set Up
Distributor Steps

Provide sales
history
•
•Provide daily
product activity



• Receive PO
Acknowledgement
Confidential Datalliance
No Additional
Hardware
Minimal IT
involvement
No ERP Overhauls
Ongoing Supplier &
Datalliance Support
21
“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
22
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
23
Who Makes a Good Partner?
Confidential Datalliance
24
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
ERP system
Threshold
 Core SKUs Stocked
 DC or Store replenishment
 Distributor commitment /
trust
 Fixable issues
 Growth
potential
 Number
of locations
Datalliance Partners Preferred!
Confidential Datalliance
25
Enter your company name in place of “supplier” and edit to your important traits then delete
this bar
FAQs
Q: I like my Inventory Management System why should I let Supplier
manage my inventory?
A: Supplier will not replace your current ERP platform, rather we would
supplement your system. We’ll take responsibility for day to day ordering
and free up your valuable resources to maximize ROI, and provide the value
of Supplier expertise and product insight through VMI’s collaborative
ordering process. Your ERP system will still see the inventory so you can
evaluate at any time just the same as you do today.
Q: Is there a cost associated with Supplier’s VMI Program:
A: There will be some upfront investment in man hours during set-up as
well as the cost of EDI which you pay regardless of VMI. But there are no
fees associated with our VMI program.
Q: What’s in this for Supplier, why do you want a distributor on VMI?
A: Many reasons but the most important are:
•
Better visibility into channel demand which helps with forecasting
which helps delivery performance.
•
Visibility into the “health” of our distributors inventory. Do we have
the right products on the shelf?
Confidential Datalliance
26
Questions
Confidential Datalliance
27