April 01, 2013
01.04.2013 Telema VMI Automatic Replenishment Order saves a lot of manual work

VMI (Vendor Managed Inventory) turns the traditional ordering process in a supply chain upside down: instead of orders the buyer sends supplier regular sales and inventory reports. Based on the data in those reports the decision on how much and when to replenish is made by the supplier.  VMI’s objective is to reduce inventory and the related costs, minimize out of stock situations, improve customer service as well as efficiency throughout the supply chain.

Telema VMI service combines retailers’ POS data and stock balances into reports, giving an overview of the products situation at store level. The reports can be viewed through Telema Service Web and they present various indicators such as stock balance of products, days of sales outstanding (DSO), average sales over a certain period etc. Recently a new important feature was added to Telema VMI that automates the replenishment process and enables to save even more valuable time.

The new  Automatic Replenishment Order allows suppliers to create next order for a given shop by one click in Telema web. The quantities in the order are automatically calculated either as:

  • the difference of the maximum and the current stock levels or
  • as equal to the amount of goods sold since the last delivery.

Before submitting the order, it is possible to change the quantities, if needed, as well as add or remove products, add discounts etc. The orders are sent to supplier’s ERP system for further processing.

Value from using automatic replenishment order

  • Manual work reduced by up to 90% - defining products to be replenished and the quantities is really fast and really simple
  • Faster replenishment process (lead time)
  • Better managed inventory at store level - all critical products get attention
  • Fewer mistakes

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To fully benefit from Telema VMI service supplier and retailer need to agree on the following:

  • retailer sends regular sales and inventory reports to supplier
  • supplier has the right to make independent replenishments at the retailer’s stores
  • assortment - items sold and what are the minimal/maximal inventory levels in the store, for supplier to be able to keep the stock
  • what will be the delivery frequency

Technical prerequisites to use full scale Telema VMI solution:

  • both, retailer as well as supplier need to be integrated with Telema EDI for document exchange (sales and inventory reports, invoices, orders etc)
  • subscritption to Telema VMI service
  • uploading of supplier product data into Telema system
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Get even more out of your VMI service by connecting to new partners

Recently new retailers have joined Telema’s VMI network who have technical ability to share their POS data.

Retailers in Telema network providing POS data:

Haapsalu Tarbijate Ühistu                  

Hiiumaa Tarbijate Ühistu

Jõgeva Majandusühistu

Järva Tarbijate Ühistu

Kaubamaja AS

Klick Eesti AS

Norfos Mažmena UAB

Põlva Tarbijate Ühistu

Rapla Tarbijate Ühistu

Rimi Eesti Food AS

Rimi Latvia SIA

Rimi Lietuva UAB

Saaremaa Tarbijate Ühistu

Selver AS

Tartu Tarbijate Kooperatiiv

TKM Beauty Eesti OÜ

Viljandi Tarbijate Ühistu

Kilminė UAB

Activating Telema VMI automatic replenishment order is easy:

  1. Agree with your partners on implementing VMI principles
  2. Inform Telema about your wish - we take care of acitvating the VMI service, linking partners and training the users
  3. Enjoy the benefits of a real partnership with your clients

VMI seems interesting and something your organization could try out?
Fill in the following form and we can have a more detailed discussion about it.
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Telema AS