First, innovation in the need for traditional inventory control methods
In recent years, supply chain management (Supply Chain Management. Referred to as SCM) at home and abroad have become an increasing concern and attention of people, many logistics companies are starting to focus on the management of this new concept in inventory management application. The so-called supply chain management are all kinds of technology, especially information technology as the basis, the various nodes in the supply chain to establish a strategic partnership, from a raw material suppliers, manufacturers, distributors, retailers until the end-user business flow , logistics, information flow, capital flow in the supply chain smooth the flow of the ultimate objective to achieve a win-win-win process even.
In supply chain management, supply chain, the activities should be carried out simultaneously, while traditional inventory and distribution management thinking clearly can not meet this requirement. Because in the traditional supply chain, based on various aspects of trade relations between the enterprises are to manage their own inventory, in the pursuit of the interests of maximizing the enterprise premise, each firm has developed its own goals and the corresponding stock inventory control strategy, the operation of this isolation led to a lack of communication between enterprises, and thus will inevitably generate demand information distortion and time lag, often makes the inventory demand information in the supply chain from downstream to upstream of the transfer process was amplification step by step, thereby greatly increasing the overall supply chain inventory, which greatly reduced the overall competitiveness of the supply chain. The goal of supply chain management through its various nodes in close cooperation between enterprises in order to minimize the cost to provide maximum customer value, which requires all sectors of the supply chain business activities should be carried out simultaneously, inventory management functions are also integration should be necessary. way, enterprises controlled by the order to the logistics of inventory management for the purpose of turning to the process control for the purpose of inventory management, supply chain, inventory management that is based on workflow management. Vendor-managed inventory (VMI) is to adapt to changing market demands for integrated supply chain, inventory management as a way of thinking.
2, VMI model components and features
Vendor Managed Inventory, called VMI, translated as "supplier-managed inventory", is a kind of users and suppliers of cooperative strategies, specifically, a user and supplier of both the lowest cost for the purpose of a common agreement by the vendor managed inventory, and continue to monitor the implementation of the agreement, amendment to the agreement, so that inventory management has been cooperative strategy for continuous improvement.
The same compared to the traditional method of inventory control, VMI mode has the following characteristics: ① cooperative. VMI model of successful implementation, an objective need for supply chain enterprises based on mutual trust and cooperate closely. Among them, the trust is the foundation of cooperation is the guarantee. ② mutual benefit. VMI model the main consideration is how to reduce both the inventory by the cost of cooperation, rather than considering how the cost burden on both the allocation problem. ③ interactive. VMI business model requires the cooperation of each node to take a positive attitude to respond to rapid response efforts to reduce the information is not clear due to the inventory costs caused by too high. ④ agreement of. The implementation of VMI models require enterprises to achieve unity of purpose in the concept, and define their respective responsibilities and obligations. Specific cooperation issues are defined by a framework agreement to enhance the feasibility of operation.
Third, select the reason VMI mode
So why the VMI model to supply chain management to inventory control models under the best choice? What are the advantages that it does?
1. Conducive to the realization of the supply chain business win-win
VMI on downstream enterprises in the supply chain benefits are obvious, it has overcome its own downstream business of technology and information systems limitations. As the supply chain, the core business of the rapid development of the upstream to downstream supply chain logistics management (including inventory management) also put forward higher requirements: the implementation of VMI, the inventory business management from the supply chain upstream and downstream enterprises feel free to carry out core business development. At the same time, VMI also meet the downstream enterprises to reduce costs and improve service quality. And downstream enterprises manage their own inventory than the supplier's products in the management of their more experienced, more professional, and providers of software, expertise, logistics equipment and personnel training, a range of services, supply chain enterprise level of service because of VMI and improved inventory management will lower costs, lower inventory investment enterprises will be reduced substantially. In this way, since the implementation of VMI will also give enterprises in the supply chain upstream suppliers to bring many benefits. VMI allows suppliers to obtain the necessary operational data downstream business, direct contact with the real demand information (through electronic data interchange EDI to send). This information can help suppliers to eliminate the short-term product demand unexpected additional costs arising. At the same time, business demand for safety stock greatly reduced. On the other hand, VMI can greatly reduce the supply and demand sides of the transaction time, so that upstream firm to better control their production and operation activities, improve the entire supply chain flexibility.
2.VMI model with the supply chain by "negative" of the unique features
In essence, VMI mode of management concepts from the whole process of managing products in the market thinking that if a product is not satisfactory final consumer purchase and consumption, then the product can not be counted have been sold, and constitute a supply a potential risk, the supplier of the product also has a monitoring responsibility for the circulation status, regardless of property ownership of the product is like. 'It is with this thought, VMI sales data to suppliers, and inventory control as the market forecasting and inventory replenishment solution that can get accurate sales data from the consumer demand information. In this way, suppliers can more effectively and quickly to market changes and consumer demand for a rapid response, and downstream suppliers and supply chain businesses to share critical information, can improve their demand forecasting, replenishment planning, marketing management and transport load programs in the entire supply chain, can reduce the total inventory and improve inventory turnover, and thus maintaining optimal inventory levels and inventory management are improved significantly.
4, VMI mode of operation
Assumed in a simple supply chain, supply chain for suppliers → retailer → consumer → wholesalers. Enterprises from the following aspects to be VMI mode of operation.
1. Infrastructure. VMI can be seen from the above model, to realize vendor managed inventory, must meet the following conditions: First, the state of the user inventory transparency, that is, suppliers or retailers to track inventory status to the investigation and inspection at any time. Second, the standardization of business processes, mainly referring to the standardization of business processes orders. Therefore, the supplier wants its customers to implement VMI VMI must be some technical support to construction.
With the increasing popularity of Internet, suppliers can make use of the Internet, through dedicated high-speed data lines and Internet network, the router is connected with their Intranet, and then from within the Intranet server vendor inventory management provide information access, processing and other services. In addition, suppliers should be through the adoption of bar code technology and the ID code to encode their own goods, a sign code by acquiring goods, such as EAN or UCC, to achieve an accurate identification of the users of goods, in order to keep watch and check the user's inventory , quick response to user needs. To ensure that orders between suppliers and users transfer, processing, safety and reliability of business, suppliers can use a unified standard EDI messages, real-time data exchange for goods. And, to improve the overall supply chain efficiency, suppliers can also use standard EDIFACT inventory report based on the list to implement inventory control, to improve inventory suppliers to monitor the efficiency of the user.
2. The establishment of a dedicated user management functions. VMI suppliers in 实施 Hou, To integrate the user's inventory control, management functions required the user from the traditional sectors of the financial management of separating, Zhuanmen to deal with suppliers and users in order Ye Wu, stock suppliers to users control and other related businesses.
3. Established between suppliers and customers target framework agreement. Suppliers and users should be determined through consultation cycle inventory checks, maintain inventory levels, order points, and so the core issues related to inventory control, and cooperation between the two sides on how the exchange of information and access, transfer and processing of orders and other relevant business flow problems.
4. Construction of complete sales management system. Suppliers to effectively managed inventory, must be able to quickly understand market dynamics and demand for commodities demand information in order to carry out targeted and timely supply of goods to both speed up the vendors to respond to user needs speed, can reduce the user's inventory volume. Therefore, on the one hand, suppliers can file through the establishment of customer information database to quickly grasp changes in customer demand, increase the accuracy of demand forecasting analysis, to a certain extent, address the "demand amplification effect" caused by excessive inventory problem; On the other hand, suppliers can use ERP software (enterprise resource planning system), through the use of Internet / Intranet technology to establish a perfect sales network management system, speeding up the supply chain of information transfer and real-time processing speed.
5, implementation of the VMI model should pay attention
On the one hand pay attention to the application of VMI model. Here the main study model in supply chain management, business feasibility of the implementation of VMI model. In general, in some more suitable for a particular Qingkuang VMI 模式 下 of Shi Shi, such as the supply of Economy of the strength of the stock has strong storage and cargo transport, distribution capabilities, as well as stable, reliable source of information; wholesalers storage facilities are limited, difficult to effectively manage their inventory; the cooperation of suppliers and close to other wholesalers. On the other hand in the implementation of VMI model, we should be pay attention to, and other advanced inventory control method used in conjunction, to minimize inventory costs, improve enterprise competitiveness, such as enterprise can use Joint Inventory management (enlarge Yinqi main settlement Xuqiu the problem of high inventory levels), multi-echelon inventory optimization and control methods.