Implementing VMI to Reduce Direct and Indirect Cost
James M. Truog
James M. Truog, Manager – Strategic Purchasing, Wacker Corp., 262-250-3518; firstname.lastname@example.org
89th Annual International Conference Proceedings - 2004 - Philadelphia, PA
Vendor-managed inventory (VMI) is a lean strategy in which the supplier is totally responsible for effective supply. A successful implementation requires planning and integration between the manufacturer and the supplier. This presentation will suggest opportunities for VMI and cover the business requirements by presenting two cases implemented by Wacker, for direct and indirect materials. The benefits are quantified through elimination of transactions and related processing costs.