EDI for VMI (Vendor Managed Inventory)

EDI Transactions in Vendor Managed Inventory 

Vendor Managed Inventory is commonly referred to as VMI.  Many of the efficiencies found in VMI result from the ability to share, automate and analyze data.  Therefore, the B2B data, and all the other values used benefit from automation.  Integration and open data sharing.  Historically that means exchanging information between buyers and sellers using EDI (Electronic Data Interchange) and VANs (Value Added Networks).  

Many other technologies come into play, but to understand how to better take advantage of the data, examine the EDI documents commonly used in VMI today.

EDI Transactions in Vendor Managed Inventory

Many of these documents are commonly being used to support order-to-cash processes, for example EDI 850, 856 and 810.  Others are sent by many retailers to help suppliers keep abreast of inventory, (The EDI 852 for example).  The majority may also be used to support SBT, or scan-based trading scenarios.

Each document type supports a process, or provides a set of data used by either the buyer or supplier. It is critical to keep up with what your trading partners require and/or can support as a way to improve your own part of the overall process.