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The rise of vendor managed inventory (VMI)
by Christopher Roberts, director of marketing and research for the Electronics Supply Chain Association.

Vendor managed inventory (VMI) programmes have begun to proliferate over the past several years.

Companies have used them as a potential solution to both the inventory problems that have plagued the electronics industry and as a method of improving financial performance.

Christopher Roberts, director of marketing and research for the Electronics Supply Chain Association, looks at the results of an online survey, interviews and several roundtable discussions that provided valuable insight into not only what is happening, but how these programmes can be improved.

Article includes:

• Understand the objectives of all parties upfront
• Create fair business agreements
• Integrate VMI processes
• Establish joint metrics up front and then use them as a basis of programme review