Case Study
Continuous Replenishment Program &
Vendor Managed Inventory
Table of Contents
CRP and VMI: Focus on Efficient Replenishment of Products
3
VMI Background and Objectives
4
A CRP and VMI Model
5
The Technology Backbone of CRP and VMI
6
How Movex Supports VMI
7
Benefits
8
Drawbacks
9
Conclusions: The Future of VMI
10
2
CRP and VMI: Focus on Efficient
Replenishment of Products
In response to the current use of supply chain buzzwords, this document aims to explain the concepts of
Continuous Replenishment Program (CRP) and Vendor Managed Inventory (VMI). It also describes how
Intentia's e-collaboration application Movex supports VMI. Finally, we present both the expected benefits and drawbacks when implementing these initiatives.
CRP is an efficient replenishment concept within the Efficient Consumer Response (ECR) arena. It focuses on improving the flow of products in the supply chain, both forward to the customer and eventually the end consumer, and backward to the supplier.
The goals of CRP are to:
· Increase inventory turns
· Reduce inventory levels
· Decrease stockouts
· Improve customer service levels
· Boost warehouse efficiency
· Enhance your trading partners' perception of value.
Demand Management
Demand Strategy & Capabilities
Optimize Assortments
Optimize Promotions
Optimize New
Product Introductions
Consumer Value
Creation
Supply Management
Operational
Excellence
Common Data &
Communication
Standards
Cost/Profit
and Value
Measurement
Integrators
Supply Strategy & Capabilities
Responsive
Replenishment
Enablers
Integrated
Demand Driven
Supply
Collaborative
Planning, Forecasting and Replenishment
E-Business
Business-to-Business
Figure 1. ECR focus areas
Efficient Consumer Response (ECR), Quick Response (QR),Vendor Managed Inventory (VMI) and other similar efforts have had a great impact on today's latest trends, such as Collaborative
Vendor Managed Inventory
Table of Contents
CRP and VMI: Focus on Efficient Replenishment of Products
3
VMI Background and Objectives
4
A CRP and VMI Model
5
The Technology Backbone of CRP and VMI
6
How Movex Supports VMI
7
Benefits
8
Drawbacks
9
Conclusions: The Future of VMI
10
2
CRP and VMI: Focus on Efficient
Replenishment of Products
In response to the current use of supply chain buzzwords, this document aims to explain the concepts of
Continuous Replenishment Program (CRP) and Vendor Managed Inventory (VMI). It also describes how
Intentia's e-collaboration application Movex supports VMI. Finally, we present both the expected benefits and drawbacks when implementing these initiatives.
CRP is an efficient replenishment concept within the Efficient Consumer Response (ECR) arena. It focuses on improving the flow of products in the supply chain, both forward to the customer and eventually the end consumer, and backward to the supplier.
The goals of CRP are to:
· Increase inventory turns
· Reduce inventory levels
· Decrease stockouts
· Improve customer service levels
· Boost warehouse efficiency
· Enhance your trading partners' perception of value.
Demand Management
Demand Strategy & Capabilities
Optimize Assortments
Optimize Promotions
Optimize New
Product Introductions
Consumer Value
Creation
Supply Management
Operational
Excellence
Common Data &
Communication
Standards
Cost/Profit
and Value
Measurement
Integrators
Supply Strategy & Capabilities
Responsive
Replenishment
Enablers
Integrated
Demand Driven
Supply
Collaborative
Planning, Forecasting and Replenishment
E-Business
Business-to-Business
Figure 1. ECR focus areas
Efficient Consumer Response (ECR), Quick Response (QR),Vendor Managed Inventory (VMI) and other similar efforts have had a great impact on today's latest trends, such as Collaborative