What is Vendor Managed Inventory (VMI)?
- Vendor Managed Inventory (VMI)
- VMI is a supply chain model where the supplier monitors the customer's stock levels and replenishes automatically based on agreed thresholds, reducing buyer's procurement effort.
VMI Benefits
For buyers: reduced stockouts, less purchasing workload, lower safety stock needed. For suppliers: more stable demand signal, better production planning, stronger customer relationship. Common in FMCG (supplier manages shelf stock at large retailers), and industrial MRO (consumables replenished by vendor). Requires high supply chain trust and data sharing.
VMI with ERPNext
ERPNext supports VMI via the Customer Portal — grant the vendor read access to your stock levels for their items via a custom portal view. Vendors monitor and raise Purchase Orders on your behalf when stock is low. The stock data flows from ERPNext's real-time Stock Balance report.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
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