Telema VMI
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Vendor Managed Inventory (VMI) 
is a replenishment model where the supplier does the demand creation and demand fulfillment. In this model, instead of the customer managing his inventory and deciding how much to fulfill and when, the supplier does.
The aim of VMI is to ensure the availability of goods for the consumer, decreasing the inventory level at the same time.
The final goal is to earn more profit for both suppliers and buyers.
WHY USE TELEMA VMI?
- Increase in sales and revenues
- Increase in inventory turns
- Reduction in stock-outs
- Better production and sales forecasting
- Increase in customer service level
- Quicker new product introductions
- More time for more value-adding purchasing/sales activities
- Less human data entry errors
- Lower inventory levels in the whole supply chain,
- Reduced supply chain costs
- Enhanced collaboration and integration with trading partners
WHAT TELEMA VMI ENABLES TO DO?
- Get up-to-date information on stock-levels at the buyers side
- Get a quick overview of sales for the period, average day sales and calculated stock in days
- Sort out goods that need to be replenished in the days to come
- Sort out goods that have not been sold for a while and analyze the reasons
- Monitor inventory-, sales reports and shipment documents and analyze trends
HOW TELEMA VMI WORKS?
- Seller and buyer agree on
- assortment,
- minimum and maximum quantities for each product at buyers and
- how often the replenishment will take place
- Regular sales and inventory reports are sent from buyer to seller via Telema central system (daily, weekly or other possibilities).
- Supplier generates the order, based on real-time sales reports and inventory data, thus enabling optimal product availability for the end-consumer.
- Delivery notes and invoices will also be electronically sent to buyer.