Vendor Managed Inventory Strategies

With increased interest in inventory programs which aim to reduce costs and improve customer service levels, establishing a VMI program can be challenging.

A recent survey conducted by Gatepoint Research where 200 executives participated from the manufacturing, retail, telecom and wholesale sector provided insight as to where they see VMI and how they implement their current programs.

We discovered 63% of survey respondents don’t always have adequate visibility into their current inventory levels.

While 38% believe they have too much cash tied up on inventory. In addition, responders still note they do not have adequate access to real time information.

This survey provides additional insight and identifies common challenges companies currently experience.

Program Overview:

• Gatepoint Research invited selected executives from the manufacturing, retail, telecom, and wholesale sectors to participate in a survey themed Strategies for Vendor Managed Inventory.

• Candidates were invited via email and 200 executives have participated to date.

• Survey participants were senior IT, supply chain, finance, and logistics decision makers. 5% held title the CxO; 32% were VPs; 61% were Directors, and 2% were Managers.

• Responders overwhelmingly worked for large firms: of the companies represented by survey participants, 67% had annual revenues of greater than $1.5 billion, 22% had annual revenues between $500 million and $1.5 billion, 11% had revenue of less than $500 million.

• 100% of responders participated voluntarily; none were engaged using telemarketing.