Vendor Managed Inventory

1. Date Vendor Managed Inventory Subtitle Edit Template

2. Vendor Managed Inventory INSTRUCTIONS: 1. Insert slides into your company template. 2. Update metrics where noted and delete green boxes when finalized. Leveraging Greater Information Sharing to Reduce Supply Chain Costs, Increase Sales, and Improve Customer Satisfaction Vendor Managed Inventory is the process where the supplier generates orders based on mutually agreed objectives and demand information sent by the customer.

3. Executive Summary • The internet has made sharing data easier, increasing the flow of data within and between organizations • Effective supply chains leverage information from as much of the chain as possible • Buyers and sellers need to be more closely aligned, creating a seamless buying process • Collaboration allows for smoother, more predictable replenishment • TrueCommerce Datalliance VMI provides a dramatic ROI: many benefits, low risk, modest investment Distributor Quote

4. The Problem • The distributor and supplier have different sets of information • Both spend time and money trying to predict what the other will do SALES PROMOTION PUTAWAY LEADTIME DISTRIBUTOR SUPPLIER PACKAGE SIZES EVENTS INVENTORY ITEM NUMBERS

5. The Solution • Communicate between supplier and distributor to create better orders and smoother demand pattern • Tighten relationships and align business goals • Increase visibility throughout supply chain to enable better resource planning • Use cloud-based solution to eliminate hardware costs SUPPLIER DISTRIBUTOR

6. Productivity Reworked Orders 88%

7. Enter your company name in place of “supplier” and enter your numbers then delete the green bar Benefits of Supplier VMI Out of Stocks Turns Up Sales Increase 31% 24% 25%

8. Adjust this slide for your situation and then remove this green bar. The Value of Collaboration Source: actual data from software vendor • Using more data allows for a higher in stock percentage • Better picture of supply chain increases turns • Greater customer service increases sale

9. Adjust this slide for your situation and then remove this green bar. Predictable Replenishment • Combining knowledge allows for more consistent order pattern • Fewer orders – especially emergency orders – reduces transactional costs • More frequent communication leads to higher service levels This data is a placeholder, Datalliance does not have access to pre-VMI orders this should come from your ERP Traditional Ordering VMI 75 60 Orders per Year Orders per Year

10. Enter your company name in place of “supplier” and their company name in place of “distributor” then delete this green bar REVIEW Supplier Distributor PRODUCT ACTIVITY Supplier VMI Process P.O. Acknowledgment PURCHASE ORDER

11. Enter your company name in place of “supplier” and their company name in place of “distributor” then delete this green bar Easy Implementation Distributor Steps * Provide daily product activity * Receive PO Acknowledgement * Provide sales history • No Additional Hardware • Minimal IT involvement • No ERP Overhauls • Ongoing Supplier & TrueCommerce Datalliance Support

12. Summary • Improve inventory turnover • Better cash flow, improved product mix • Increase service levels • Wholesaler in-stock to meet demand, reduce stockouts • Collaborative supply chain • Communication, vendor’s commitment to partner goals • More service and support