VMI-Vendor Managed Inventory
Under contract agreements, Nefab operates Logistics Centers that provide "Just-In-Time" deliveries of packaging materials to the customer sites. 
Based on the customer’s projected volume and real consumption, Nefab assumes responsibility for the entire logistics flow, from subcontractors to the customer’s production plant. 
 
This release capital, storage space and personnel resources by transferring inventory supply responsibility to Nefab.
 

Advantages for customers using the services of Nefab’s VMI

•  Supply Chain Optimization
•  Reduced number of suppliers
•  Short delivery times
•  Reduced capital tied up in stock
•  Cost take-out in administration
•  Cost take-out in warehouse labour
•  Improved quality control
•  Focus on core activities
•  Reduced risk for obsolete material

VMI- Definition

Did you know ?
 
Vendor Managed Inventory (VMI) is a technique for pipelining material to the factory floor in a just-in-time fashion from a buffer stock managed by the Vendor, with the Vendor deciding how frequently and what quantities to deliver.

It is the Vendor’s responsibility to monitor the customer’s stock levels and deliver based on the customer’s actual needs.

The inventory levels in the buffer stock are committed to the Buyer and held at maximum and minimum levels based on the customer’s forecast.