Vendor Managed Inventory Adds To Bottom Line

Increased customer response time, decreased contract costs and better inventory management are results experienced by companies that have integrated Vendor Managed Inventory (VMI) and Available-to-Promise (ATP) programs in their supply chain management process.

Research done by Chapel Hill, N.C.-based, Best Practices LLC, highlighted one company which saw a 50% decrease in contract costs using a VMI business model with an e-business infrastructure. That same company was able to increase its responsiveness to customer demand by 10%.

Another company enjoyed a 25% reduction in work-in-process inventory coupled with an 8% reduction in changeovers due to its ATP program. Additionally the company experienced significant improvement in customer service.

To view a summary of the report that includes information on delivery performance, supply chain cycle time and cost management visit: http://www3.best-in-class.com/rr650.htm


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