FloChem Quality Chemical Management

Vendor Managed Inventory

Definition of Vendor Managed Inventory

Vendor Managed Inventory: A means of optimizing Supply Chain performance in which FloChem™ is responsible for maintaining the customer's inventory levels.

FloChem™ has access to the customer’s inventory data and is responsible for generating purchase orders. To further define it, let’s look at two business models:

Typical Business Model

Under the typical business model, when a customer needs product they place an order with FloChem™. The customer is in total control of the timing and size of the order being placed. The customer maintains the inventory plan.

Vendor Managed Inventory Model

With a Vendor Managed Inventory (VMI) model, FloChem™ receives electronic data from a satellite that relays the customer's stock levels. FloChem™ is responsible for creating and maintaining the inventory plan and under VMI FloChem™ generates the order rather than the customer and confirms delivery date.

Benefits of Vendor Managed Inventory

The Benefits of VMI are numerous for both FloChem™ and the Customer.

Dual Benefits

Customer Benefits

FloChem™ Benefits