Manufacturer-controlled Inventory management
The cooperation between installation specialist Viega and regional wholesaler Köbig shows how manufacturers and retailers can work together better in the supply chain for mutual benefit. Viega gains access to Köbig's inventory and demand data and takes over inventory management for him. On this basis, Viega can correspondingly increase the availability of Viega products at Köbig.
Rudolf Kaiser, E-Business Coordinator at Viega GmbH & Co. KG, cites the most important objectives in the implementation of the project:
"We wanted to map the VMI process to the full satisfaction of our customers and develop efficiency potentials. The necessary tool should make as little effort as possible with maximum flexibility. We did this with LOGOMATE from REMIRA."
The initial situation
Viega GmbH & Co. KG is an internationally operating company in the field of sanitary and heating technology. The product range comprises around 17,000 products. For many years, Viega has increasingly relied on VMI, for example, for optimal warehouse planning at its specialist wholesaler Köbig. The range of products offered by the long-established Mainz-based company includes products from the fields of building, living, renovation and refurbishment. Köbig has an exhibition area of 4,000 m².
In order to perfect replenishment not only on the manufacturer's side, but also at the customer's, Viega set its sights on manufacturer-controlled inventory management (VMI). This is where REMIRA LOGOMATE VMI came into play. The flexible solution for computer-controlled replenishment optimizes the complex supply chain from the producer to the wholesaler to the specialist customer. LOGOMATE VMI enables Viega to optimally adapt weekly VMI orders to the demand situation at the wholesaler and to deliver the appropriate quantities for efficient goods receipt.
Direct line to the manufacturer
Normally, LOGOMATE VMI receives daily stock information from the wholesalers' logistics systems via an EDI interface In the case of Viega and Köbig, however, it was even easier: Since Köbig is also a LOGOMATE user, the two systems could be connected directly. This meant that Köbig had a direct link to one of its largest suppliers, independent of its own merchandise management system. Thanks to the direct connection of the two LOGOMATE systems, Köbig provides the supplier Viega with all relevant information for optimal inventory management. This includes, for example, current stocks, open sales and reservations. Based on this data, the supplier, taking into account its own inventory situation, can use the VMI system to calculate the exact quantities required each week, thus ensuring optimum availability of Viega products for the wholesale trade.
Further development and results
Viega has been using VMI for over 20 years. The dovetailing of the LOGOMATE systems from Viega and Köbig ensures precise merchandise planning and faster processing of the entire goods receipt and storage process at the wholesaler. For example, information about the exact storage locations of the Viega articles in the Köbig warehouse is exchanged. As a result, the goods on the pallets now correspond to the sequence and labeling of the storage locations. Viega sees the greatest advantage after the introduction of VMI in the optimized inventory management - the right goods, at the right time, in the right quantity at the right customer's warehouse and thus more sales. In turn, customers, such as Köbig, benefit from a high level of supply security and shortened storage times, and as a result the goods can be resold more quickly. Viega reports a reduction in their customers' out-of-stock situations by around 15% after the introduction of VMI and a reduction in inventory by up to 10%.
Facts
- Over 17,000 different items worldwide
- Has been using LOGOMATE VMI for over 20 years
- Over 250 customers connected with VMI in 8 countries
- More customer satisfaction and business and higher service level thanks to VMI
