October 4, 2020
Case Study – Utilities & Energy
One of Europe’s largest utilities and infrastructure business with revenues in excess of £2.5bn in 2017 employing over 20,000...
TVS SCS’s Vendor Managed Inventory solution provides a collaborative approach between the supplier and the manufacturer to optimise the inventory management and fulfillment process. With this process, you are able to sync data, processes, and business objectives into one solution that optimises the supply chain for all stakeholders.
Running out of stock when you need whether it is a component required on your assembly line or a product that your customer requests, can lead to increased costs and poor customer satisfaction.
Utilising a Vendor Managed Inventory solution removes the responsibility from the manufacturer to maintaining inventory levels, managing lead times, and cutting purchase orders. This is now under the control of the logistics provider, to maintain the inventory levels, adjust inventory based on demand while also identifying gaps in the supply chain. Developing a collaborative solution provides each stakeholder with increased transparency and visibility into the operation, creating a streamlined data source to forecast more accurately and efficiently. Providing transparent data for all stakeholders reduces the chances of stock-outs occurring, leading to increased profitability and throughput for the manufacturer.
By switching the purchase order responsibility from the manufacturer to the logistics provider, you are able to optimise and develop a more accurate solution by combining and analysing the data from both the manufacturer and supplier. This allows the customer to realise lower purchasing costs due to them no longer having to spend nonvalue added time analysing data, developing, and sending purchase orders to the supplier; this is now the responsibility of the Logistics provider.
In addition, to reduce costs throughout the purchasing process, customers are also able to realise warehouse cost savings by reducing the amount of inventory on-hand and optimising space utilisation throughout the warehouse.
Designing and implementing an optimised Vendor Managed Inventory solution is beneficial to all elements of the supply chain from supplier to end customer, ensuring each stakeholder receives the correct product when they need it. Improving product availability creates a more streamlined supply chain and increasing profitability.
100 Years Of Excellence In Trading And Technology
Pivotal Supply Chain Solutions To Top Companies In The World
Warehouse Space, Labour & Technology Anywhere It’s Needed
Customised Solutions With AI Integrations And Machine Learning
TVS’ Vendor Managed Inventory solution provides a collaborative approach between the supplier and manufacturer to enable optimised inventory management and fulfilment process. Typically, a Vendor Managed Inventory solution involves moving the responsibility of maintaining inventory levels, managing lead times, and cutting purchase orders from the manufacturer to a logistics provider. This develops a more streamlined process assisting in identifying and resolving supply gaps throughout the supply chain.
One of the main focuses of a Vendor Managed Inventory Solution is to utilise data-driven analysis to align the inventory requirements of both the customer and the supplier. This minimises costs and wasted space by eliminating stagnate stock from the customers’ supply chain.
With streamlined inventory requirements, the customer is able to remove unneeded stock from their supply chain, leading to increased cash flow and space utilisation in the warehouse and throughout their supply chain. When implemented correctly, a vendor-managed solution is an effective strategy to develop a leaner supply chain.