What is Inventory Management?
Inventory Management is the process of controlling and managing your stock requirements to support and maintain production output whilst applying effective and efficient cost controls.
What is Vendor Managed Inventory?
Vendor Managed Inventory (VMI) is a business model where the buyer of a product provides information to a vendor of that product (Romar Innovate) and the vendor takes full responsibility for maintaining an agreed inventory of the material, usually at the customer’s consumption location. The supplier of goods, in this case Romar Innovate, is responsible for optimizing the inventory held by the customer.
…maintain a high degree of visibility of goods at the customer’s location…
The goal of VMI is to align business objectives and streamline supply chain operations for both suppliers and their customers.
The business value is a direct result of increased information flow:
✔Improved Inventory Turns
With our VMI customers, Romar Innovate assumes the role of inventory planning and execution. Through extensive information sharing, Romar Innovate can maintain a high degree of visibility of goods at the customer’s location. Instead of the customer reordering when their stock is exhausted, Romar Innovate is responsible for replenishing, so we stock the customer at appropriate levels.
Romar Innovate provides a robust and reliable VMI service for many leading organisations in Ireland and the UK. By engaging with a VMI service, these sites can eliminate the uncertainty which arises when there is a lack of clarity for the supplier around the customer’s inventory status.
Learn more about Romar Innovate’s VMI capabilities by contacting us.