From aftermarketNews Staff & Wire Reports

ALBION, Ill. – Champion Laboratories announced that it has begun offering product ordering, inventory management and tracking services to its customers through a Vendor Managed Inventory (VMI) platform.

VMI is a streamlined approach to inventory management and order fulfillment that uses increased collaboration between suppliers and their customers—be they distributor, retailer, or OEM—to enhance the traditional ordering process. Instead of sending purchase orders, customers electronically send daily sales and demand information that generates replenishment orders for the customer based on the sales and demand activity. This creates a streamlined supply-chain operation for both the supplier and the customer.

“We had talked internally about VMI being a value-added process that we should be entering into with our customers,” said Tom Cantwell, Champion Laboratories’ customer service manager, who oversaw the launch of the VMI program on July 31. “We realized that this is something the industry was driving toward. We have a great partnership with Datalliance and the investment in VMI is worthwhile since it benefits the long-lasting relationships we have with our customers.”

Thanks in part to the reports that can be generated by its new program, Champion Laboratories said it has received very positive feedback from customers currently using the VMI platform. Fewer “stock outs” and more inventory turns are two realized benefits that are being achieved through the VMI system. The company said this new process also allows Champion Laboratories to make any necessary modifications in its production planning.

After two months in use, Champion Laboratories’ VMI program is “already managing more than $1 million in yearly sales, with many more customers showing interest,” according to Cantwell.