Is VMI Right for You? – Four electrical distributors find that Vendor Managed Inventory is the answer to their replenishment needs
The Electrical Distributor (TED) Magazine, November 2009
In this recent article, four leading electrical industry distributors (all four use Datalliance VMI) were interviewed regarding their experience and success with VMI. The distributors included in the article are: Revere Electric Supply, North Coast Electric, Werner Electric Supply, and Kirby Risk.
The distributors all reported a substantial increase in the percentage of their inventory now managed by VMI.
“We began using VMI in 2005, primarily at the request of Rockwell Automation,” recalled Mike Ales, Werner Electric’s vice president of purchasing and operations. Four years later, Werner’s VMI transactions represent about 50% of the company’s volume.
Rockwell Automation also requested Kirby Risk’s participation in VMI, and the company began using it in 2002. According to Joe Hart, director of purchasing and material management, “Today, about 80% of our inventory is being managed through VMI.”
The bottom line results realized by all four distributors drove home the business benefits that they gain through VMI.
Revere Electric Supply: “… VMI enables us to achieve better fill rates and higher turns because the real-time data enable manufacturers to respond quickly and accurately to our product needs.”
North Coast Electric: “The improved efficiencies offered by VMI’s data synchronization allow our inventory managers to focus on long-term visions and strategies rather than on day-to-day generation of purchase orders.”
Werner Electric: “… turns are also higher and customer service improved. With VMI, we have been able to increase both our in-stock percentages and fill rates.”
Kirby Risk: “By the time a new product is launched, the distributor already has it on its shelves and available immediately to customers.”
Read the complete article, or visit www.tedmag.com to read the entire issue.
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