For your Vendor-Managed Inventory (VMI) system to succeed, concerns of both your sales force and your distributors need to be resolved.
Here’s a list of the principal ways that such issues can be addressed:
- Employ a complete working model of your proposed VMI model in an off-line instance before actually putting one in place at your company;
- Implement a start-up program with vendor-owned warehouses to prove that your system works, and then do the same later with a distributor-owned warehouse, once the distributor’s questions and concerns have been shown to be minor.
- Institute your sales team as marketers for the VMI model and initiate bonuses for them for each new client they bring in.
- Make the process palatable to manufacturers by including their promotions in your establishment/transition period.
- Use someone as a broker for the initial meetings you have with distributors, members of your sales team and vendors. Take their objective advice to heart and make sure the decisions address concerns of yours and those in your supply chain.
VMIs can only succeed if your supply chain contributes to a mutual benefit of your business and theirs. As an increasing number of companies gravitate into the VMI model, more information on how it works the best becomes available.
SIMMS 2017 is an evolving accounting and inventory package that embraces the VMI model. We at KCSI look forward to helping you achieve your VMI goals, with SIMMS as your primary package. Give SIMMS a free trial now here: http://simmssoftware.com/inventory-software/Download-Trial.aspx