VMI software, which stands for “vendor managed inventory software,” is a type of inventory management software that lets a vendor make orders for their clients based on information they get from their customers about what they want. Inventory management at a customer’s location is supported by VMI software. By instructing the provider how much of each item to ship to a customer’s location, these solutions allow a product supplier (such as a manufacturer) to optimize the inventory kept separately by the buyer (typically a distributor or store).
15 Best Vendor Managed Inventory VMI Software in 2022
The most common use for this sort of solution is for replenishing. VMI software makes use of stock status data from the client, such as on-hand inventory, daily sales, and product in-transit information. This information, which is usually gathered from EDI software documents, is used to make estimates of demand and improve orders for vendor-managed inventory.
A VMI software uses a supply chain planning process similar to that of DRP software, which estimates inventory requirements and creates purchase orders and inventory transfers to satisfy their customers’ replenishment demands. This software may help you identify the sort of products, the number of goods, and the location that has those items in the store that will be required to meet any demand. It may also help you deliver goods to your consumers more effectively.
Should Your Company Use (Vendor Managed Inventory) VMI Software?
Establishing a long-term relationship with your clients and consumers starts with implementing a vendor-managed inventory system. A buyer makes judgments regarding purchase sizes and quantities in a typical environment. The supplier determines the order size under a VMI software strategy, which means they are making decisions on behalf of the buyer. These decisions have an influence on order costs, inventory holding costs, and stock levels at both businesses.
VMI software helps vendors run their businesses more smoothly and keep their cash flow steady. They will also have a greater understanding of the customer’s goals and needs, making exceptional service easier to give. Retailers and distributors (the purchasers) stand to gain in a variety of ways. Products are usually sent to customers ahead of schedule because the supplier will just use them as another place to keep stock.
The customer will be quickly charged whenever they decide to consume a portion of the inventory. This provides them with rapid access to the supplies and items they require. VMI software will function similarly to a traditional inventory system. The client may scan item barcodes to find their whereabouts in their own warehouse rapidly. As the customer uses an item, the software will automatically order a new one from the vendor’s supply source.
Features of Vendor Managed Inventory VMI Software
- Inventory Control: Keep track of all information regarding the products that your firm manufactures, purchases, stores, or sells. simplifies product pricing and assists in maintaining the most efficient stock levels. It includes serial and lot traceability. forecasting demand for a product so that it may be developed and distributed as quickly as feasible.
- To create better-educated supply chain planning choices, data from different units of your customer’s organization (mainly sales, marketing, and operations) is combined. Inventory turnover and fill rates are improved.
- Avoid overstocking by identifying non-performing inventory SKUs. Integrate with shopping carts and online retailers to ease shipping, payment, and inventory levels.
- A stock control system or warehouse management system can help you keep track of the items sold via your eCommerce site (WMS). simplifies product pricing and assists in maintaining the most efficient stock levels. It tells you exactly what you have and where you can find it.
- Electronic Data Interchange (EDI): This allows commercial partners to interchange business documents in a standard electronic format from one computer to another. Shipping statuses, invoices, purchase orders, inventory papers, and customs information are all included.
Advantages of Vendor Managed Inventory VMI Software
Vendor-managed inventory systems offer the following advantages:
Stay Compliant With Your VMI software Agreements With The Correct Stock Counts
With the right stock count, you can stay in compliance with your VMI agreements. VMI agreements are private contracts, so they are not governed by any laws or set up in a way that makes them easy to follow. Their significance in VMI interactions, however, cannot be overstated.
When you collaborate with your customer, you’ll perform a collaborative forecasting endeavor to identify common goals for both companies. The number of inventory rotations or required service levels is two examples. These are the kinds of things you’ll want to remember on a regular basis, which VMI software may assist you with.
Your customer will have access to VMI software and will be able to view their item predictions. On the business side, this will let them give feedback, make their forecasts more accurate, and keep them from having too much stock.
Reduce the number of goods that are returned
Because VMI software allows you direct access to your customers’ inventory levels, your company will be responsible for ensuring that clients have enough inventory to fulfill requests. This is especially true in consumer packaged goods (CPG), or items that customers use up and replace frequently. Food, beverages, cosmetics, and cleaning supplies are all included. Overstocking is never a problem with vendor-managed inventory systems.
The distributor or retailer’s inventory levels are always checked to make sure that the right amount of stock is kept based on past, present, and expected sales. If your warehouse doesn’t have to deal with returns, your company will be able to focus on other important tasks in its day-to-day operations.
These solutions can also help figure out the most efficient truck routes because they figure out how much stuff is needed at each site. This is done through accurate demand forecasting, which lets you look at sales trends across customers, products, and time periods and predict what will happen next.
Seasonal consumption is expected to rise
Due to capacity limits, seasonal demand for certain items might cause market disruption. Holiday buying, for example, or increases in particular sorts of consumption (such as turkeys on Thanksgiving or flowers on Valentine’s Day) are examples. Customers may assure supply chain success by planning ahead.
Demand patterns that happen often or are easy to predict could happen at any time, making it hard to predict future demand. This might result in items being discounted at the end of the season or sales being lost altogether. You can remain ahead of consumption patterns while reducing the risk of stockouts by considering seasonality as well as shifting demand trends. This lets you count on your busiest times to make the most money and make sure your products are always available. You may also avoid cash flow concerns by preventing excess stock levels.
Erply business software is a retail point of sale software with robust inventory management. Stocktaking, invoicing, and dashboard applications are just a few of the tools that might help your retail business succeed. Erply offers both real-time and offline updates.
Thrive Technologies offers demand forecasting and inventory replenishment through its cloud-based inventory optimization software. The software seeks to provide wholesale distributors and retailers with accurate demand projections at several locations.
EnterpriseIQ by IQMS provides a full set of tools for running a business from a single source. These tools are all stored in a single database. Only EnterpriseIQ’s comprehensive suite of modules completely connects production and accounting, removing the need for
TrueCommerce’s EDI platform is specifically intended to make EDI implementation simple and affordable. As a result, only TrueCommerce can offer all of the following advantages: End-to-end, single-source solution -Everything you require…
5. Latitude WMS
Latitude WMS is a package of software for industrial and retail distributors that includes a sophisticated warehouse management system. This software automates basic warehouse tasks like receiving/putting away, picking from multiple zones without paper, cycle counting, and more.
The Generix Group WMS is a flexible and adaptable warehouse management system for businesses that need supply chains that are always changing, working well, and growing. The Generix Group WMS caters to a variety of regulatory and others.
7. Atlas Planning
Atlas Planning is a digital supply chain planning software that works from start to finish. Modern supply networks must be able to spot and react to changes in demand and market disruptions that happen quickly. For more than two decades, top corporations have dominated
8. Vanguard Predictive Planning
Vanguard Predictive Planning is an Integrated Business Planning (IBP) software that works with all business lines, figures out how likely risks are, and automatically improves plans. The technique works best in supply chain planning situations to
9. Softeon VMI
At the DC and store level, Softeon Vendor Managed Inventory (VMI) helps track vendor inventory ownership and transfers of ownership. Based on estimates or sales history, this optimizes store restocking. Softeon VMI software wants to improve inventory management and…
ETurns TrackStock is a cloud-based inventory software that automatically restocks based on demand and gives stockrooms far away from real-time visibility into inventory. eTurns TrackStock employs barcode scanners, cellphones, IoT weight sensors, and RFID to track inventory.
QuickBooks Commerce, which used to be called TradeGecko, is a powerful cloud-based inventory and order management app for modern internet businesses. Manufacturing, sales, inventory locations, and currencies are all combined. QuickBooks Commerce allows you to keep track of everything…
Orderhive is a multi-channel order, shipping, and inventory management automation software that aims to optimize your e-commerce operations. All of your sales orders, stock updates, order updates, shipping label generation, and payment are all available cheval.
13. Clear Spider
Clear Spider is built to help you manage inventory, whether it’s yours, needed for an e-commerce business, consigned, or at a third-party warehouse. The software is workflow enabled to imitate your processes. It also features a task notification feature.
As businesses grow, they find that QuickBooks Inventory Control isn’t enough to help them manage their stock. They go beyond numerous sites, increase the number of things they carry and enter production…
3PL Warehouse Manager is a cloud-based warehouse management system from 3PL Central that can help you better serve your customers and grow your business faster. This allows warehouses to easily manage inventory, and automate regular processes.