Warehousing and VMI

Vendor managed inventory (VMI) is a process where Reliant creates orders for our customers based on demand information that we receive from your MRP/ERP system.  We determine and agree to inventory levels, fill rates and costs. This arrangement typically improves supply chain performance by reducing inventories and eliminating stock-out situations

Another benefit of VMI is that Reliant is responsible for supplying your manufacturing sites or warehousing locations with our products as needed.  This removes the need for you to have significant safety stock. Lower inventories for you can lead to significant cost savings. 

You can also benefit from reduced purchasing costs.  Because the vendor receives data and not purchase orders, the purchasing department has to spend less time on calculating and producing purchase orders.  In addition, the need for purchase order corrections and reconciliation is removed which further reduces purchasing costs.  Cost saving can also be found in reduced warehouse costs since lower inventories reduce the need for warehouse space and warehouse resources.

Here’s an overview of advantages of a Reliant VMI program:

For our customers:

  •   Reduced inventory/increased turns
  •   Reduced administrative costs
  •   Fewer stock-outs or shortages
  •   Increased sales (for distributors and retailers)

For Reliant:

  •    Better demand visibility 
  •    Stronger customer relationships

For both parties:

  •   Better information for planning (e.g. demand visibility)

A closer, more effective working relationship equates to both parties working together to sell more product and better serve end customers