Suppliers that source the same or similar products to multiple customers in a geographic area gain a special advantage. They can be more nimble in response to demand fluctuations by moving inventory from one site to another or even from one customer to another. The customer benefits through increased service levels, reduction in inventory costs, and decreased management requirements. VMI becomes a win-win proposition assuming the supplier can maintain accurate view of the inventory at the customer's site. Until now it has been difficult for suppliers to economically monitor inventory levels at customers' sites.
Forecasts can be notoriously inaccurate.
Shipments can be lost, delayed, appropriated, or rerouted without suppliers' knowledge. Suppliers need a direct, real-time view into customers' inventory and planning systems. SV gives authorized suppliers a direct, real-time view into customers' inventory and order data for their items. With SV, suppliers can closely monitor how items are being consumed and determine the timing and volume needed to replenish stock. To connect customers with suppliers, SV employs a small code module, a poller, which is downloaded from the SV Web site.