This inventory management strategy breaks the traditional fragmented inventory management model. It embodies the integrated management idea of supply chain and adapts to the requirements of market changes. It is a new and representative idea of inventory management. At present, VMI plays a very important role in the distribution chain, so people pay more and more attention to it.
For VMI, because there are minimum and maximum inventory points, on-time delivery can be measured by the relative inventory level. For example, the inventory is zero and the risk is high; Inventory is lower than the lowest point, and the risk is quite high; Inventory is higher than the highest point, and the risk of shortage is small, but the risk of inventory expiration is increased. In this way, the above statistics can measure the delivery performance of suppliers. According to the future material demand and the supplier's supply plan, we can also predict the future trend of the inventory point, so as to determine the specific inventory index at a specific time.
VMI management mode is developed from QR (quick response) and ECR (efficient customer response). The core idea is that suppliers can enjoy the current inventory and actual consumption data of users' enterprises through * *, and make replenishment according to actual consumption patterns, consumption trends and replenishment strategies. As a result, the two sides changed the traditional independent forecasting mode, and minimized the waste of business flow, logistics and information flow caused by the uncertainty of independent forecasting, thus reducing the total cost of the supply chain.