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Vendor Managed Inventory (VMI)

Did you know? Vendor Managed Inventory (VMI) programs oversee a whopping ₹18,000 crores in inventory each year. Freight forwarding companies play a crucial role in these vendor-managed solutions, helping to slash inventory costs by 20-35%. They also enhance service levels and boost supply chain efficiency through collaborative inventory management and expert VMI coordination.


VMI Framework and Collaborative Model

With vendor-managed inventory, suppliers take charge of managing customer inventory levels, setting replenishment schedules, and optimizing stock. This is all made possible through shared data, collaborative planning, and performance metrics. Freight forwarding companies are key players in coordinating VMI programs, facilitating data sharing, and managing logistics. They provide customers with top-notch inventory optimization and professional VMI management through systematic collaboration and seamless supply chain integration.


Technology Systems and Data Integration

To make VMI work, you need integrated systems, real-time data sharing, and analytics platforms that support effective inventory management, demand forecasting, and replenishment optimization. Freight forwarding companies invest in VMI technology, which can cost between ₹5-25 lakhs annually, to connect supplier and customer systems. This investment ensures inventory visibility and professional VMI coordination through tech-enabled collaboration and data-driven inventory management.


Business Benefits and Partnership Development

The advantages of VMI are significant: reduced inventory carrying costs, improved service levels, stronger supplier relationships, and optimized working capital that all contribute to business growth and a competitive edge. Freight forwarding companies help forge VMI partnerships, coordinate implementation, and manage ongoing operations, all while assisting customers in achieving inventory optimization and fostering supplier collaboration through expert VMI management and the development of supply chain partnerships.

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