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SHANGHAI HONGYING SUPPLY CHAIN MANAGEMENT CO.,LTD                      

 

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VMI Service

 

Description

VMI (Vendor Managed Inventory) is a business model in which the purchaser and the supplier establish strategic cooperation relationship, and the supplier takes full responsibility for maintaining an agreed inventory of material, to ensure the availability of materials and lower overall cost for both parties. A third-party logistics provider can also be involved in inventory management to improve inventory and capital turnover through planning and management on inventory strategy, ordering strategy, distribution strategy and capital flow so as to realize targets in both production system and distribution system.

Service Model
Entrustment model: The ownership of cargo in public warehouse remains with the supplier, while Hongying SCM manages the inventory on behalf of the supplier, and provides JIT delivery services

Financing model: Three parties (Purchaser, Supplier and Hongying SCM) sign a tripartite agreement, thus, Hongying SCM purchases the ownership of products and provides Purchaser with VMI service and JIT delivery as the direct supplier.

Contents

  • Consolidation of supplier’s goods;

  • Raw material inventory management;

  • Rolling inventory plan and safety stock early warning/alert;

  • Kitting;

  • JIT delivery;

  • Real-time access to VMI information system and report generation.

Features

To effectively assist in minimizing inventory level, reduce purchase cost and time, and improve raw material inventory management efficiency to realize zero-inventory; shorten delivery lead time for the supplier, improve capital turnover, reduce risk and cost of transaction, expedites information communication between the upstream and the downstream in supply chain, strengthen overall partnership so as to promote the continuous improvement in the supply chain.

   

 

     

   

 

 

◎2012 SHANGHAI HONGYING SUPPLY CHAIN MANAGEMENT CO.,LTD  COPYRIGHT
Add: Unit 1 of building 3, No.122 Gangmao Rd, Yangshan Free Trade Port Area   T:8621-50496108
 
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