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is trying to forecast the future, and nothing can do that perfectly. When beginning a VMI relationship, the supplier and distributor must discuss how mistakes are going to be handled. What is the return policy? What about expedited shipment and shipping charges? Nothing is perfect, so both parties should be clear on the policies to correct mistakes.And the NUMBER 1 reason not to consider VMI If it ain39。 allows items to be matched through catalog ID’s or even a simple crossreference. This early matching process not only enables VMI, it also saves money down stream because it eliminates inaccuracies in orders, invoices and payments.When there is a requirement for a highly configurable product that is not assigned a UPC code, distributors may choose to process orders through their current processes.Reason 4: If we let a puter program determine our inventory, I estimate that our inventory dollars will increase a minimum of $200,. We can’t afford to tie up our money like that. What about the extra warehouse space? What about the extra items lying around with price tags anywhere from $2, to $8, each? The big question is: Do we need to keep five of this item on the shelf, or would one or none be enough? Will VMI order five of this item? Based on quantifiable data from hundreds of locations up and running on the Datalliance212。 stores and uses daily data to differentiate items that sell one a day from those that sell 20 at a time once each month. Datalliance212。7 / 8Top 10 Reasons Not to Try VMI And why you should reconsider!By: Janice BurkJanice Burk leads the Vendor Managed Inventory (VMI) team for Rockwell Automation. Over the past five years, Rockwell has been using Enterprise Data Management’s VMI solution – Datalliance212。 has 11 different planning groups to handle a wide variety of movement patterns. Datalliance212。 application, the average increase in inventory turns is 20%, which suggests that overall inventory carryi