What is a vendor managed inventory system? The answer to that is pretty simple. In a vendor managed inventory system, it’s up to the vendor and not the retailer to make decisions regarding the maintenance of inventory levels of a product based on information provided to them by the retailer. There are a host of benefits to this kind of relationship between vendor and retailer. It’s because of this so many retailers are jumping on the vendor managed bandwagon when it comes to the management of their products. To better understand why that is the case, why not examine more closely why this is such a great relationship for vendors and retailers?
Decreased Risks
One of the most obvious reasons this type of relationship is so beneficial is because of the decreased risk to both parties when it comes to inventory management. Retailers no longer have to worry about taking on too much stock, which they would then be unable to sell. It’s the job of the vendor to make decisions regarding the amount of stock to put in the hands of the retailer after all.
Greater Interactivity
In that same vein, vendors who may never have spent time interacting with retailers and their customers are now motivated to get out and learn more about what’s going on in sales. The vendor managed inventory system drives interactivity in a big way, which has tremendous benefits for the vendor and the retailer alike. From more incentives for commissions to better insight into marketing and sales trends, there is much that can be gleaned from these types of systems.
Learn more about vendor managed inventory systems by contacting Demand Solutions on their website or at Phone No.