Innovative Water Solutions
Vendor Managed Inventory: Sharing Inventory Risk for Mutual Gain
The Watts Water Technologies Vendor Managed Inventory (VMI) service is a computer software-enabled collaboration or partnership between Watts Water and US wholesale customers. This partnership inverts and radically changes the traditional ordering process. Rather than you sending hard copy purchase orders to us, your computer-based business system electronically transmits daily demand information to us and we calculate and generate replenishment orders for you based on inventory position and demand. In this model, Watts Water takes responsibility for managing the demand and replenishment of our products for you.
VMI Benefits – VMI eliminates inventory management problems of the past while reducing overhead by transferring your inventory management, order entry and forecasting to Watts Water.
- Improves inventory turns up to 13 times/year – by carrying and investing in less inventory, you gain access to greater working capital
- Provides better service levels – improve fill rates; decrease stock-outs and inventory levels
- Increases sales – provides better service to end user by having correct items in stock when customer needs them
- Reduces admin burden – allows greater efficiency in handling additional sales volume
- Requires less distribution space – allows for greater product coverage; increases material handling efficiencies
- Greatly reduces data entry errors –virtually eliminates human errors through computer-to-computer communications; POs generated on predefined basis
How Our VMI Works – The VMI process begins with mutually agreed objectives regarding your inventory levels, fill rates, and transaction costs.
The VMI is then configured to align our mutual business objectives and streamline supply chain operations. As demand data is received, it is automatically analyzed and orders placed consistent with predetermined mutually agreed business objectives. The VMI process assures product availability and replenishment quantities on a schedule that keeps your stock levels at optimum efficiency. VMI automates and even eliminates many costly and time-consuming manual functions while improving service and cutting transaction costs.
Becoming a VMI Partner – Because of the investment of personnel time and resources by Watts Water to implement and operate this value-add service, customers must meet basic Information technology capability and business volume requirements to qualify to participate. To learn more about becoming a VMI partner with Watts Water Technologies, please complete and submit the electronic form below. You will then be contacted by a representative that will discuss the VMI value equation and requirements to determine if vendor managed inventory is a good fit for your business.
For more information on Vendor Managed Inventory, please fill out the form below.