Champion Laboratories, Inc. has begun offering product ordering, inventory management and tracking services to its customers through a Vendor Managed Inventory (VMI) platform.
VMI is a streamlined approach to inventory management and order fulfillment that uses increased collaboration between suppliers and their customers to enhance the traditional ordering process. Instead of sending purchase orders, customers electronically send daily sales and demand information that generates replenishment orders for the customer based on the sales and demand activity. This creates a streamlined supply-chain operation for both the supplier and the customer.
“We had talked internally about VMI being a value-added process that we should be entering into with our customers,” explained Tom Cantwell, Champion Laboratories’ customer service manager, who oversaw the launch of the VMI program. “We realized that this is something the industry was driving toward. We have a great partnership with Datalliance and the investment in VMI is worthwhile since it benefits the long-lasting relationships we have with our customers.”
Champion Laboratories says it has received very positive feedback from customers currently using the VMI platform. Fewer “stock outs” and more inventory turns are two realized benefits that are achieved through the VMI system, according to the company. This new process also allows Champion Laboratories to make any necessary modifications in its production planning.
After two months in use, Champion Laboratories’ VMI program is “already managing more than one million dollars in yearly sales, with many more customers showing interest,” according to Cantwell.