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Vendor/Supplier Managed Inventory (VMI/SMI)

Project Description:


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Looking to start Vendor Managed Inventory?

Complete the simple form below on your part and we’ll get you a quote the same day!

What is Vendor Managed Inventory?

Vendor or Supplier Managed Inventory is a business solution in which the supplier retains ownership of product, carries the agreed inventory levels, and delivers using a third party logistics (3PL) provider, just in time based upon customers’ needs.  SCSI provides Accurate, Reliable, Timely (ART©) Vendor Managed Inventory solutions, delivering your material from your door to your customers’ door just in time (JIT) in Asia, Europe, North America, and South America, from our global network of warehouses with full visibility 24/7.

Key to our success is communication with our customers.  Read more about our delivery performance reporting.

OEM Needs:

  • Total cost of ownership visibility
  • Leverage LCC sourcing but keep local service
  • Reduce total inventory, but also OEM owned inventory
  • Reduce internal period and variable costs associated with planning, tracking, moving, storing,…sqft, forklift trucks, racks…
  • Optimize cash flow and leverage Operating Profit After Cost of Capital (OPACC)
  • Minimize pain of quality issues due to JIT batch sizes
  • Lean flow to present material “ideal state” to line (sequencing, Sub assembly, kitting, etc.)
  • Elevate supplier to the benchmark – the best in the world are on VMI!

Supplier Needs:

  • Enhanced customer support (quality, logistics, technical) using local support minimizing travel expenses and resources
  • Opportunity to add value or enhance product offering with localized sub-assembly, kitting, sequencing, returnable packaging…to POU.
  • Secure LT business with enhanced value added proposition
  • Reduction of quality spills exposure by smaller JIT batch and local rapid response support
  • Reduction to elimination of internal assets associated with storage (sqft, racks,…) using “pipeline” for storage
  • Leveling of production using pipeline inventory buffer
  • Position company toward benchmarks
  • Become low maintenance = better productive time with buyer = more business
  • View as a local from the assembly delivered = more business opportunity

Our Capabilities

  • Presence in country of customer
  • Network of capabilities on 3 continents
  • Knowledge of having been a supplier
  • Multicultural and multilingual support staff
  • Caterpillar (CPS) and Honeywell best VMI practices
  • Web Inventory Tracking System (WITS)
  • Never stopped a line since 2001
  • Reliable reactive quality containment
  • Preferred CAT and Exclusive Honeywell Europe – Asia supply base provider
  • CAT MLS agreement
  • Reputation – eg. Peugeot SMAE Renault Cleon best supplier>Results
  • Simple piece price = Cost Control
  • Leveling production
  • Minimum quality spills
  • Opportunity to add more value to the parts
  • No need for inventory inside facilities
  • Your own global customer support network
  • Become world-class, low maintenance global supplier to multiple OEMs through SCSI distribution network