What is the difference between VMI and JMI

The core idea of VMI (Merchant Management [Wiki] Inventory) is that the retailer gives up control of the commodity inventory, and the merchant controls the commodity inventory movement on the [Wiki] chain, that is, the merchant centrally manages the inventory according to the daily commodity sales information and inventory provided by the retailer, and places orders or continuously for the retailer, so as to achieve rapid response to changes in customer demand. At present, it has slowly evolved into a powerful tool for downstream manufacturers to reduce inventory, and the means of managing the inventory belonging to the upstream ** supplier by itself or a third party is also called VMI joint inventory management (jointly

managed

Inventory, JMI) is similar to VMI, and the supply and demand sides jointly formulate a unified production plan based on the sharing of inventory information and the consumer.

With the sales plan, the plan will be carried out to each manufacturing unit and sales unit. Strengthen the exchange of information and coordination among them in the process of program implementation. JMI can be regarded as the further development and deepening of VMI, through the sharing of inventory information to jointly formulate a unified plan, which is conducive to improving the operational efficiency of the ** chain and enhancing the cooperative relationship between enterprises.

It's all about ideas, and the key is how the enterprise applies it.

Personal understanding: JIT is to control the whole process, so that there is no waste, the goal is to have no inventory, and then use it again. VMI controls the inventory for the first business, and the goal is to integrate the information flow of the entire chain, and the first business to understand and analyze the needs of customers, and then formulate the corresponding inventory plan according to their own capabilities.

There are 3 differences between VMI and JMIThe details are as follows:

First, the characteristics of the two are different:

1. The characteristics of VMI: VMI can share information, manage inventory, and demand accurately.

2. Characteristics of JMI: JMI has created conditions for other scientific first-chain logistics management, such as continuous replenishment of goods, rapid response, and just-in-time supply.

Second, the role of the two is different:

1. The role of VMI: VMI breaks the traditional silo inventory management model. It embodies the integrated management idea of the first chain, adapts to the requirements of market changes, and is a new and representative inventory management idea.

2. The role of JMI: The purpose is to solve the demand amplification phenomenon caused by the independent operation of each enterprise in the first-chain system and improve the efficiency of the first-class chain.

3. The essence of the two is different:

1. The essence of VMI: a cooperative strategy that aims to obtain the lowest cost for both users and merchants, manages inventory by merchants under a common agreement, and continuously supervises the implementation of the agreement and amends the content of the agreement, so that inventory management can be continuously improved.

2. The essence of JMI: the best business and customers participate in the inventory plan at the same time, and jointly formulate the inventory plan to achieve benefit sharing and risk sharing.