VMI(vendormanagedinventory):Thevendorordistributorreceiveselectronicdataaboutthecustomer'ssalesandstocklevels
Thevendorisresponsibleforcreatingandmaintainingtheinventoryplan
Thevendorgeneratesthereplenishmentorder,notthecustomer
Consignment:Thevendorordistributorplacesinventoryatacustomer'slocationandretainsownershipoftheinventory
Paymentisnotmadeuntiltheitemisactuallysoldorconsumed
Third-party:SimilartoVMI,exceptthatathird-partycompany(usuallyalogisticsprovider)takesresponsibilityovermaintainingstocklevelsandtheinventoryplan
MilkrundevelopmentWehavefocusedonthetransportationofcomponentsfromoursuppliersinourreviewoflogisticalsteps
Inthepast,eachsuppliercontractedanindividualdistributioncompanytotransportcomponents
Instead,byhavingasingledistributioncompanytotravelaroundthesupplie