Vendor Managed Inventory
Supply chain and inventory control for manufacturing companies
Ensuring uninterrupted production demands seamless and secure deliveries
In the VMI model, component stock remains the property of the supplier and is managed by a logistics operator in a warehouse located at an optimal distance from the factory.
The manufacturer does not incur direct costs of storage and inventory management; instead, it utilizes components as needed and pays for them only upon transportation from the warehouse. Through system integration, the logistics operator determines the required quantity for delivery to the factory, the supplier schedules production accordingly, and the manufacturer maintains complete oversight of the delivery and inventory management process.
YOUR BENEFITS WITH VMI?
- Ensuring production continuity through seamless deliveries
- Enhanced financial liquidity due to reduced inventory costs
- Deferral of customs and tax expenses for goods originating outside the EU
HOW IT WORKS?
A single operator coordinates procurement, logistics, and delivery.
STEP 1
We transport goods to the warehouse based on the DDU principle (Delivered, Duty Unpaid).
STEP 2
At the recipient's request, we conduct the customs procedure for a selected batch of goods and issue a sales invoice on behalf of the supplier.
STEP 3
Based on the invoice, we deliver goods within the just-in-time system directly to the production line or the end customer.
Benefits of VMI
FOR the recipient
- Streamlined shopping planning and enhanced security
- Accelerated execution of component orders and reduced risk of shortages
- Decreased inventory and lower storage costs
- Increased flexibility and smoother adaptation to changes in production plans
for the supplier
- Reduced freight costs through optimized shipment volumes
- Inventory control until goods leave the warehouse
- Enhanced flexibility in component deliveries
- Reduced forecasting errors
Duty and tax deferral
The stock of production elements is held in a bonded warehouse. Payment obligations only arise upon movement outside this area, specifically when transported to the factory.
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