Vendor Managed Inventory

Client / Profile:

National distributor of copy paper suppling a national Stationer

Issue:

For the supplier the issue is differentiating their offer beyond price, in a crowded market place. To sustainably add demonstrable benefits that their customer will value.

Cause (Benefit):

For the Stationer Instock is critical, however copy paper being a bulky product, warehouse space was at a premium.  Also given the nature of the market, margin are tight therefore reduced inventories delivery significant bottom line value

Response:

Implemented a VMI solution utilising TAARS as the facilitator / engine. This provided the supplier with forward orders and the client with significant benefits (see below)

Outcome:

• Supplier became #1 preferred supplier and triple their share of the business through  delivering to the client
• Stockturns increased from 10.1 nationally to over 47. (no that’s not a misprint)
• Perfect instock (100%)
• Reduced warehouse space significantly
• Reduced administration cost

Learning: VMI done properly, is the single most effective tool for customer lock-in and for optimising a FULL supplychain.