Vendor or Supplier Managed Inventory is a business solution in which the supplier stays the commodities proprietor, respect inventory, and delivers conformed parts just in time through third party logistics service provider.
Supplier Needs:
1. Improve the customer support & satisfaction;
2. Optimize the production and Logistics flow through the support of specialized 3PL;
2. Reduction of quality exposure due to the fact of delivering JIT batches;
3. Omission of internal assets associated to the logistics operations;
4. Focus on the core business;
5. Improve the company benchmark.
OEM Needs:
1. Optimize the logistics flow (warehouse, minimum stock, transit, delivery schedule);
2. Minimize quality issues due to Just In Time certified batch sizes;
3. Eliminate the risk of line blockage;
4. Increase the production capacity.;
5. Improve the financial figures (cash flow, variable cost VS fixed cost);
6. Focus on the core business.
DLOG Capabilities:
On behalf of the manufacturer, DLOG optimizes the supply chain performance by committing to maintain the client inventory levels. DLOG VMI services aim to:
1. Handle the entire coordination & synchronization of the project between the supplier & OEM from a quality and logistics point of view, including customs support;
2. Commit to the service agreement level signed between the supplier & OEM;
3. Ensure on time delivery of a reliable forecast;
4. Decrease lead times in transportation;
5. Guarantee inventory availability for manufacturer;
6. Decrease inventory levels and investments;
7. Ensure compliance with manufacturer's specifications & quality standards.
8. Deliver a real custodianship with the supplier;
9. Deliver 100% controlled parts.
