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With inventory visibility suppliers can monitor your stock levels to eliminate stockouts or unnecessary surpluses. They can adjust their production and distribution strategy based on real-time information regarding your consumption rates. This visibility can reduce the uncertainty that arises when a supplier is blind to the customer’s inventory status. With VMI suppliers can take a proactive approach to keeping your inventory where you need it to be.

Effectively maintaining inventory and avoiding stockouts results in a steady and predictable flow of income for the supplier, reducing the risk that the customer will switch suppliers. A VMI arrangement will allow the supplier to schedule its operations more productively because it is now monitoring its customer’s inventory on a regular basis. A better understanding of how customers use their goods leads to inventory reductions and lower operating costs.

As vendors and manufacturers seek to remove inefficiencies in the supply chain, the need for 3PL’s to manage VMI’s is increasing at a rapid pace. Vendor Managed Inventory is the foundation for a mutually beneficial relationship enabling all parties involved to control the availability and flow of goods more smoothly and accurately. VMI services require expanded functionality to the standard Inventory Management system. The UniCODE® VMI product integrates the necessary functionality in a rapidly deployed, low cost solution for each inventory pool to be managed.