Making VMI a Practical Reality:
The Supply Chain Action Network™ (SCAN) leverages the Internet to enable real-time,
collaborative replenishment planning between retailers and their suppliers.
What value does this deliver to the retail industry?
Large retailers are moving toward a vendor managed inventory business model. The
primary business driver for VMI is shifting responsibility for the inventory asset to the
supplier until the customer makes their purchase. A secondary aim is to reduce the
administrative cost associated with ordering product.
But the move toward VMI has been slowed by system obstacles. EDI is too expensive for
many suppliers, too slow as a collaborative mechanism, too rigid to reflect business
dynamics and too limited - all it can do is pass data.
A real-time, information technology infrastructure is required that can create a ‘virtual
enterprise’ capable of delivering dramatic improvement in the supply of goods at
significantly lower overall supply chain costs.
SCAN™ is lightening fast - moving at Internet speed. SCAN™ is simple to use and smart -
managing replenishment action items on a supplier’s To Do List based on violations of
agreed upon inventory policies.
And SCAN™ is inexpensive to roll-out to large numbers
of suppliers. All a supplier needs is browser access to the Internet!
SCAN™ makes VMI
a practical reality.
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