Inventory Planning and Control
Vendor Managed Inventory (VMI) setup is easy with Park City Group. Our inventory planning software comes with everything you need to successfully manage your inventory levels and reduce out-of-stocks.
VMI Inventory Set Up
Step 1: Data Synchronization
One of the major benefits of VMI is that the manufacturers’ and distributors’ data will be in sync. In order for VMI to work, the manufacturer must keep their trading partners up-to-date regarding changes to their catalogue or product data. Thus, the first step is to synchronize the data and reconcile any discrepancies.
Step 2: EDI Testing
The manufacturer and distributor must work closely together to ensure that the data is transmitted properly. By testing several distinct product categories (such as Inventory on Hand or Inventory Sold) you can ensure that the system is operating properly.
Step 3: Creating a Stocking Plan
The manufacturer must create a stocking plan for its distributors and then have the distributors agree to the plan. Even if the manufacturers’ stocking formula is propriety, distributors need to have a basic understanding of how restocking is calculated. A year’s worth of data is ideal for creating the plan.
Step 4: Install POS Data
By collecting POS data from distributors, manufacturers can base their inventory levels on direct sales instead of past ordering history. This is the last validation point in the setup process and guarantees that the status and stock level of every item is accurate.
Step 5: Go Live!
Once the retail inventory software is up and running, distributors can begin making sales and entering transactions using the VMI system. Daily and/or weekly reports calculate the replenishment levels and merchandise is ordered accordingly.
Park City Group’s VMI inventory setup process is highly customizable. Let us design a custom solution for your business that will help you regain control of your inventory.
Contact Us to get started!