Product/Service

Vendor Managed Inventory (VMI)

Source: DiCentral
It's great when a simple and cost–effective solution can be found for a complex problem. The kind of problem that scan based suppliers face daily… Problems like managing point of sale data, verifying in–store inventories, and calculating in–transit merchandise versus what is actually on the selling floor.
  • It's great when a simple and cost–effective solution can be found for a complex problem. The kind of problem that scan based suppliers face daily… Problems like managing point of sale data, verifying in–store inventories, and calculating in–transit merchandise versus what is actually on the selling floor.
  • DiReplenish is a comprehensive, demand–based supply chain application for suppliers. DiReplenish can help strengthen trading partners relationships for increased sales and reduced inventory costs. Active participation in Vendor Managed Inventory (VMI) or Scan Based Trading (SBT) is now fast to implement, easy to operate and financially rewarding. In addition, DiReplenish support and services includes all trading partner profiles, bringing value to the supplier by reducing labor requirements. The DiReplenish solution requires no additional technology staff to support your VMI or SBT efforts. This provides the most reliable path to quantifiable results by bundling comprehensive EDI and supply chain tools, structured implementation, and superior expertise.
  • DiReplenish provides a full range of VMI/SBT capabilities. This features a high level of automation for virtually any product mix and scales from 50 to 50,000 locations. Item–specific inventory is analyzed and orders are produced according to your customer's rules. Scan Based Trading (SBT) improves supply chain efficiency due to labor savings and reduction of non–value added costs such as store level receiving.
  • As Trading Partners are increasingly implementing more sophisticated relationships with their vendors, it is paramount that suppliers synchronize their EDI point–of–sale data and workflow processes to make Scan Based Trading invaluable. Never before have the expectations of your trading partners been more demanding, and never before has an opportunity to differentiate your organization been so visible as through Scan Based Trading (SBT) and Vendor Managed Inventory (VMI).

Features Of DiReplenish:

  • Maximize sales revenue
  • Shorten lead times by up to 30–50%
  • Reduce inventory by up to 30–60%
  • Improve in–stock rates
  • Enhanced trading partner relationships

Benefits Of DiReplenish:

  • Simple, fast, and cost-effective
  • Quickly determine in-transit, in-inventory, and sold products
  • Adding trading partners is easy
  • Integrate with backend applications
  • Award winning customer support

Customer Relations

  • Scan Based Trading (SBT) and Vendor Managed Inventory (VMI) have been proven to increase efficiency by reducing labor cost and man–hours. DiReplenish provides significant benefits to your business relationships.
    • By implementing a VMI or SBT relationship, suppliers position themselves to start collaborating more closely with buyers and associated customer groups. This helps establish trust and good communication. These are key to implementing and maintaining any successful VMI/SBT relationship.
    • Managing store inventory through delivery to stores (VMI) and financial responsibility through POS (SBT) makes you a more profitable supplier for your trading partner. Less resources have to be expended by your trading partner in ordering, receiving and financing your product on their shelves.
    • All supplier and customer requirements are installed at implementation. Additionally, DiCentral ensures trading partner compliance while providing technical support, etc. This can improve scorecard placement while minimizing charge–backs from your client.
    • By participating in an SBT or VMI relationship, a supplier has the ability to negotiate improved shipping volumes or "batch" orders until they reach a profitable shipping volume.

Biasing Wizard
What is Bias?

  • A Bias is a value based on a subjective decision to increase or decrease a location's Model Stock.
    Example #1:
  • The President of the United States is attending a political convention in San Diego. To avoid lost sales, a supplier of American flags would like to increase his model stock in the greater San Diego Area, thereby generating substantially larger orders to locations included in the Bias

    • How Is It Set Up?

    1. Supplier and/or trading partner agree on store classes as being subjective values that are associated with a location. Usually based on total sales, store classes are often referred to as "A" store, "B" store, "C" store, and so on.
    2. Supplier and/or retailer agree on "model stock" by item and by store class.
    3. Supplier assigns "minimum order value," in dollars or pieces, to reflect the amount that makes economic sense to ship an individual order per store location.

    How It Works

    1. DiReplenish receives regular point–of–sale data through EDI or mutually agreed upon specifications.
    2. Sales data is received by the DiCentral DiReplenish System.
    3. Supplier generates pre–orders according to
    4. Supplier applies biasing (If desired)
    5. Supplier generates and re–generates orders until satisfied.
    6. Supplier generates ship orders.
    7. Supplier transforms ship orders to ERP Systems, EDI Documents and Transportation or Warehouse Management systems.
    8. Supplier moves In–Transit Inventory to In–Store Inventory.