AFI is thrilled to announce that we will be opening a new warehouse in Tennessee at the start of the new year. This exciting expansion is taking place in a booming location; manufacturing accounts for 15% of the state’s total output and makes up 11.4% of its workforce.
What is VMI?
VMI, or vendor managed inventory, refers to the process in which a vendor (supplier) manages inventory for a manufacturer. VMI promotes a leaner supply chain in which the supplier maintains a predetermined safety stock to prevent stock outages. Whenever the inventory reaches the threshold level, re-supply is done by the vendor through regularly scheduled reviews of the on-site inventory. The vendor closely monitors these changes and determines when to generate new orders for replenishment.