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Vendor Managed Inventory
Vendor-managed inventory (VMI) is an inventory management practice in which a supplier of goods, usually the manufacturer, is responsible for optimizing the inventory held by a distributor. In traditional inventory management, a retailer (sometimes called distributor or buyer) makes his or her own decisions regarding the order size. Under VMI, the retailer shares their inventory data with a vendor (sometimes called supplier) such that the vendor is the decision-maker who determines the order size. Thus, the vendor is responsible for the retailer's ordering cost, while the retailer has to pay for their own holding cost. This policy can prevent stocking undesired inventories and hence can lead to an overall cost reduction. Moreover, the magnitude of the bullwhip effect is also reduced by employing the VMI approach in a buyer-supplier cooperation. A third-party logistics provider may also be involved to make sure that the buyer has the required level of inventory by adjusting the dem ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Inventory Management
Field inventory management commonly known as inventory management is the function of understanding the stock mix of a company and the different demands on that stock. The demands are influenced by both external and internal factors and are balanced by the creation of purchase order requests to keep supplies at a reasonable or prescribed level. Inventory management is important for every other business enterprise. Retail supply chain Inventory management in the retail supply chain follows the following sequence: # Request for new stock from stores to head office, # Head office issues purchase orders to the vendor, # Vendor ships the goods, # Warehouse receives the goods, # Warehouse stores and distributes to the stores, # Shops and/or consumers (e.g. wholesale shops) receive the goods, # Goods are sold to customers at the shops. Software applications SaaS inventory management software is a tool to help efficiently manage stock. While the capabilities of applications vary, most i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supply Chain
In commerce, a supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products to customers through a distribution system. It refers to the network of organizations, people, activities, information, and resources involved in delivering a product or service to a consumer. Supply chain activities involve the transformation of natural resources, raw materials, and components into a finished product and delivering the same to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains. Suppliers in a supply chain are often ranked by "tier", with first-tier suppliers supplying directly to the client, second-tier suppliers supplying to the first tier, and so on. Overview A typical supply chain begins with the ecological, biological, and political regulation of natural resources, followed by the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Scan-based Trading
Scan-based trading (SBT) is the process where suppliers maintain ownership of inventory within retailers' warehouses or stores until items are scanned at the point of sale. Suppliers, such as manufacturers or farmers, own the product until it is purchased by the customer, with the store or venue then buying the product from the supplier and reselling it to the customer. Analysts in the grocery sector estimate scan-based trading accounted for $21 billion dollars in consumer goods purchased in the grocery industry alone in 2020, or nearly 3% of overall sales. History Traditionally scan-based trading programs use electronic data interchange solutions as the key component to synchronize information on store locations (Organizational Structure 816), items (Price/Sales Catalog 832), daily sales (Product Activity Data 852), receivings (Receiving Advice 861), billings (Invoice 810) and payments (Remittance Advice 820) between a retailer and its Scan-Based Trading suppliers. Pros and con ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consignment Stock
Consignment involves selling one's personal goods (clothing, furniture, etc.) through a third-party vendor such as a consignment store or online thrift store. The owner of the goods pays the third-party a portion of the sale for facilitating the sale. Consignors maintain the rights to their property until the item is sold or abandoned. Many consignment shops and online consignment platforms have a set day limit before an item expires for sale. Within the time of contract, reductions of the price are common to promote the sale of the item, but vary on the type of item sold (usually depends on the price point, or if it is considered luxury.)(usually 60–90 days). Consignment stock is stock legally owned by one party, but held by another, meaning that the risk and rewards regarding to the said stock remains with the first party while the second party is responsible for distribution or retail operations. The verb "''consign''" means "to send" and therefore the noun "''consignment ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
High Tech Industry
High technology (high tech), also known as advanced technology (advanced tech) or exotechnology, is technology that is at the cutting edge: the highest form of technology available. It can be defined as either the most complex or the newest technology on the market. The opposite of high tech is '' low technology'', referring to simple, often traditional or mechanical technology; for example, a slide rule is a low-tech calculating device. When high tech becomes old, it becomes low tech, for example vacuum tube electronics. The phrase was used in a 1958 ''The New York Times'' story advocating "atomic energy" for Europe: "... Western Europe, with its dense population and its high technology ...." Robert Metz used the term in a financial column in 1969, saying Arthur H. Collins of Collins Radio "controls a score of high technology patents in a variety of fields." and in a 1971 article used the abbreviated form, "high tech." A widely used classification of high-technological manuf ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Inventory
Inventory (American English) or stock (British English) refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilisation. Inventory management is a discipline primarily about specifying the shape and placement of stocked goods. It is required at different locations within a facility or within many locations of a supply network to precede the regular and planned course of production and stock of materials. The concept of inventory, stock or work in process (or work in progress) has been extended from manufacturing systems to service businesses and projects, by generalizing the definition to be "all work within the process of production—all work that is or has occurred prior to the completion of production". In the context of a manufacturing production system, inventory refers to all work that has occurred—raw materials, partially finished products, finished products prior to sale and departure from the manufacturing system. I ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Symbiosis
Symbiosis (from Greek , , "living together", from , , "together", and , bíōsis, "living") is any type of a close and long-term biological interaction between two different biological organisms, be it mutualistic, commensalistic, or parasitic. The organisms, each termed a symbiont, must be of different species. In 1879, Heinrich Anton de Bary defined it as "the living together of unlike organisms". The term was subject to a century-long debate about whether it should specifically denote mutualism, as in lichens. Biologists have now abandoned that restriction. Symbiosis can be obligatory, which means that one or more of the symbionts depend on each other for survival, or facultative (optional), when they can generally live independently. Symbiosis is also classified by physical attachment. When symbionts form a single body it is called conjunctive symbiosis, while all other arrangements are called disjunctive symbiosis."symbiosis." Dorland's Illustrated Medical Dictionary. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bullwhip Effect
The bullwhip effect is a supply chain phenomenon where orders to suppliers tend to have a larger variability than sales to buyers, which results in an amplified demand variability upstream. In part, this results in increasing swings in inventory in response to shifts in consumer demand as one moves further up the supply chain. The concept first appeared in Jay Forrester's ''Industrial Dynamics'' (1961) and thus it is also known as the Forrester effect. It has been described as “the observed propensity for material orders to be more variable than demand signals and for this variability to increase the further upstream a company is in a supply chain”. Science at Stanford University helped incorporate the concept into supply chain vernacular using a story about Volvo. Suffering a glut in green cars, sales and marketing developed a program to sell the excess inventory. While successful in generating the desired market pull, manufacturing did not know about the promotional plans. In ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Home Depot
The Home Depot, Inc., is an American multinational corporation, multinational home improvement retail corporation that sells tools, construction products, appliances, and services, including fuel and transportation rentals. Home Depot is the largest home improvement retailer in the United States. In 2021, the company had 490,600 employees and more than $151 billion in revenue. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address. It operates many big-box store, big-box format stores across the United States (including the District of Columbia, Guam, Puerto Rico and the United States Virgin Islands, U.S. Virgin Islands); all 10 provinces of Canada; and all 32 Mexican states and Mexico City. Maintenance, repair, and operations, MRO company Interline Brands (now The Home Depot Pro) is also owned by The Home Depot, with 70 distribution centers across the United States. It has been involved in several controversies, primarily involving t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Petrolsoft Corporation
Petrolsoft Corporation (1989–2000) was a supply chain management software company with a focus on the petroleum industry. Petrolsoft Corporation was founded at Stanford University in 1989 by Bill Miller and David Gamboa as Petrolsoft Software Group. It was later incorporated in 1992. Petrolsoft introduced demand-driven inventory management to the petroleum industry. History The initial idea for Petrolsoft's inventory management product came from founder David Gamboa family's cash flow problems at their chain of retail gasoline stations. Mr. Miller's analysis showed that it was being caused by an inventory imbalance of gasoline stocks. When they approached Chevron with their solution, they discovered this was more than just a family problem, rather an industry-wide problem. The software solution to this problem became Petrolsoft's initial product, based on inventory proportionality. Gordon Hartogensis, a Stanford computer science graduate, joined the company in 1993 as the thir ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
