DTC HUB - Take Control of Your Stock - Flipbook - Page 27
PROCESS INSIGHT
What VMI
actually looks
like in practice
Moving from reactive ordering to controlled supply –
and what changes on the shop floor.
What VMI is designed to fix
What changes on the shop floor
Most consumable supply issues are not caused by a
lack of product. They are caused by a lack of visibility
and structure.
Materials are where they are needed, when they are needed. Time spent searching for stock
drops. Interruptions caused by missing items stop happening.
Stock is stored centrally, but not always where it is
needed. Levels are checked manually, often inconsistently.
Ordering is reactive – triggered when something runs low
or runs out. Different teams use materials at different
rates, but that usage is rarely tracked accurately.
The result is familiar: stockouts in critical moments, overordering of low-use items, time lost locating materials,
and a constant reliance on individuals to keep things
running. VMI is designed to remove that variability.
How it works in practice
In a working VMI setup, stock is not just delivered – it
is structured. Consumables are placed at the point of
use: within a paintshop, composite bay, or production
line. Each location is defined, and each product has
a set minimum and maximum level based on actual
usage data, not estimation.
Stock is checked on a scheduled cycle – either
through physical visits or supported by simple digital
tools. When levels reach a defined trigger point,
replenishment is initiated automatically. No manual
purchase order. No waiting until stock runs out.
Over time, usage data builds. Levels are adjusted
from what is actually consumed rather than what was
estimated at setup. The system becomes self-correcting.
1
2
3
4
5
Stock placed at point of use
Usage tracked vs. set levels
Trigger point reached
Auto replenishment
Teams are no longer responsible for manually monitoring stock levels – reducing human
error and freeing up time for higher-value work. Stock levels become more accurate: excess
inventory is reduced without increasing the risk of running out.
Reactive ordering vs. VMI
Before
With VMI
Stock checked when someone notices it
is low
Levels monitored on a defined cycle
Orders raised manually when stock runs out Replenishment triggered automatically
Materials stored centrally
Stock placed at point of use
Usage estimated, often inaccurately
Levels set from actual consumption data
Stockouts disrupt production
Shortages prevented before they occur
Where it delivers most value
Paintshop
Composite bay Assembly
Maintenance
High consumable
variety, continuous
use, sensitive to
interruption
Multiple materials
per stage,
expiry-sensitive
stock
Unpredictable
demand spikes,
critical availability
requirements
Line-stop risk
if fasteners or
compounds run
short
What it is not – and why it matters
VMI is not simply a supplier holding more stock. Without structure it becomes over-supply
rather than controlled supply. The value comes from how stock is positioned, monitored,
and replenished – not just from who owns it.
It also does not remove the need for oversight. It replaces manual, ad-hoc processes with
defined ones – but still relies on accurate setup and ongoing management to stay calibrated.
As operations become more complex and supply chains less predictable, the ability
to control internal stock becomes more important. VMI shifts the focus from reacting
to shortages to preventing them – creating visibility where there was uncertainty, and
consistency where there was variation.
Levels tuned from real data
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