VMI started due to Just-in-time requirements of OEMs, primarily in the automotive segment
Responsibility of managing inventory shifted to suppliers
Suppliers take ownership of ‘assembly line - ready deliveries’ for being directly put in production
Frequency & quantity of deliveries decided by OEMs and communicated to suppliers
Suppliers outsource inventory management to logistics service providers
Inventory maintained at a location near to the OEM’s manufacturing units
OEMs play a very important role in recommending logistics service providers that suit their requirements, to their suppliers
Benefits of VMI
Better Inventory Control
Minimize or better control on inventory levels
Reduced idle inventory and inventory holding costs
Short replenishment lead times
Warehousing and secure inventory management
Efficient order-fulfillment
Assured just-in-time deliveries at OEM’s supply lines
Real-time delivery schedules & supplier inventory data
Allows OEMs to maintain flexible production schedules to align it with actual sales – owing to extreme fuel price fluctuations & automotive business volatility
Supply Chain Improvements
No more fire-fighting with phone calls and floods of emails
Enhanced visibility of your supply chain
Ensure a lean supply chain
Improved working capital cycle
Reduced cost of warehousing & transportation
VMI at Safexpress
Assembly line- ready deliveries to OEMs in bins, racks or crates as required - Box-in Box-out, Box to Bin and Box to trolley
Dedicated VMI team at each location, with inventory controllers & a central cell for monitoring and visual quality checks
Daily MIS reports on inventory levels, part numbers and invoice numbers
Value-added services including quality checks, repacking, cleaning and wiping, barcode labeling, racking, bin tagging, order management, supplier-wise inventory management and documentation (permits, MODVAT, PODs, etc.)