INSTRUCTIONS:
1. Insert slides into your company template.
2. Update metrics where noted and delete green boxes when finalized.
Vendor Managed
Inventory
Leveraging Greater Information Sharing to Reduce
Supply Chain Costs, Increase Sales, and Improve
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
 Buyers and sellers need to be
more closely aligned, creating a
seamless buying process
 Collaboration allows for smoother,
more predictable replenishment
 Datalliance VMI provides a
dramatic ROI: many benefits, low
risk, modest investment
Distributor Quote
2
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
Productivity
Reworked Orders
VMI
Non VMI
Need Rework
5%
Need
Rework
40%
Datalliance Customer Analysis
88%
Enter your company name in place of “supplier” and enter your numbers then delete the green bar
Benefits of Supplier VMIp
Out of Stocks
Turns Up
Sales Increase
31% 25% 24%
Adjust this slide for your situation and then remove this green bar.
The Value of Collaboration
In Stock %
Turns
Weekly Sales
Traditional
Replenishment
97%
4.0
$20,742
After 1 Year of VMI
98%
4.6
$26,456
Source: actual data from software
vendor
• Using more data allows for a higher in stock percentage
• Better picture of supply chain increases turns
• Greater customer service increases sale
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Predictable Replenishment
This data is a place holder, Datalliance does not have access to pre-VMI orders this should come from your ERP
Traditional
Ordering
VMI
75
60
Orders per Year
Orders per Year
 Combining knowledge
allows for more consistent
order pattern
 Few orders – especially
emergency orders –
reduces transactional costs
 More frequent
communication leads to
higher service levels
Enter your company name in place of “supplier” and their company name in place of
“distributor” then delete this green bar
Supplier VMI Process
PRODUCT ACTIVITY
DISTRIBUTOR
REVIEW
DATALLIANCE
P.O. ACKNOWLEDGMENT
PURCHASE ORDER
SUPPLIER
Enter your company name in place of “supplier” and their company name in place of
“distributor” then delete this green bar
Easy Implementation
Distributor Steps
• Provide daily

product activity

• Receive PO
Acknowledgement


• Provide sales
history
No Additional
Hardware
Minimal IT
involvement
No ERP Overhauls
Ongoing Supplier &
Datalliance Support
Summary
 Improve inventory turnover
• Better cash flow, improved product mix
 Increase service levels
• Wholesaler in-stock to meet demand, reduce stock outs
 Collaborative supply chain
• Communication, vendor’s commitment to partner goals
 More service and support