The concept

VMI supplier take over the responsibility of supply chain management and make people in manufacturer released from planning, receiving, keeping and operating the physical material, and then reach 0 inventory and no risk of material shortage.

A quick comparison between Traditional Supplier Chain and Nefab VMI Solutions

Traditional Supplier Chain

•          Parts are stocked/owned by manufacturer--- Inventory, obsolete risks, space

•          A team of sourcing/purchasing/receiving/warehousing -- Manpower

•          Within one project, if it contains 10 suppliers, therefore at least 10 forecasts, 10 POs and 10 deliveries management is unavoidable -- Administration work

•          If there’s the quality issue, the outer packaging supplier will blame inner packaging supplier, inner packaging will criticize others too--Nobody takes responsibility

Nefab VMI Solutions

•          Parts are stocked/owned by system supplier--Almost 0 inventory for manufacturer

                                                                                     Save warehouse space

                                                                                       Obsolete risk within the liability agreement

•            One system supplier instead of 10 suppliers need to be daily contacted -- Save manpower

                                                                                                                                  Save administration work

•           If quality issue happened, system supplier has full responsibility--No arguments