Tag Archives: implementation

Challenges in Implementing VMI

Vendor Managed Inventory can be made to work, but the problem is not just one of logistics. VMI often encounters resistance from the sales force and distributors. At issue are roles and skills, trust, and power shifts. Some of the sales force concerns are:

1) Many sales personnel worry about whether the system will work well, and their concern is high specifically about whether the system will be able to avoid technical breakdowns.

2) They dread the loss of control that they possessed before.

3) Worries about the elimination of a large sector of the existing sales force

4) Worries that the company’s market share will drop due to less assets (inventory) on shelves before new stock from new vendors can fill them again

5) The loss of influence in sales that the sales personnel have due to possible discontinuation or lowering of incentive-based sales.

All concerns over VMI can be resolved and adapted providing that your company does not have too rigid a template applied, and thus allows for the benefits and performance upon which sales personnel thrive.